MeitY seeks project management firm to oversee progress of semiconductor programme

In March 2024, three major projects received approval under the India Semiconductor Mission

The Ministry of Electronics and Information Technology (MeitY) is looking to select an agency to monitor the implementation, recommendation for release of fiscal support and physical progress of schemes that make the Semicon Indian Program.

The programme has three schemes — for setting up of semiconductor fabs, display fabs and a scheme for compound semiconductors, silicon photonics, sensors fabs and OSAT facilities in India.

The selected project management consultancy firm will finalise the terms of fiscal support agreement. This will form the basis of monitoring of the key parameters, technological and financial arrangements and release of payments, the ministry has said in its call for bids from interested players.

The selected firm will also assess technological arrangements made by companies, ensure technology transfer and oversee quality control.

The firm will also conduct financial assessments, which include project estimate, overall cost and also verify the claim for fiscal support.

It will also be responsible for analysing and reporting the setting up of fabrication facilities such as plant layout, facility design, onboarding of vendors for construction, completion of buildings, cleanroom readiness and so on, the ministry has said.

The firm will also scrutinise critical milestones such as production target achievement and review off-take agreements.

The government launched the India Semiconductor Mission in December 2021, announcing a Rs 76,000-crore chip incentive scheme, offering a 50 percent subsidy on capital expenditure for plant setup.

In March 2024, three major projects received approval under the scheme— CG Power's proposed Rs 7,600-crore chip packaging facility in Gujarat's Sanand in partnership with Japan's Renesas Electronics; Tata Group's Rs 27,000-crore chip assembly plant in Morigaon, Assam; and Tata Electronics' Rs 91,000-crore plant in collaboration with Taiwan-based Powerchip in Dholera, Gujarat.

A Rs 275-crore packaging plant by US-based Micron Technology is under construction in Gujarat.