Lok Sabha Question No. 62 (UNSTARRED), answered on 2022-02-02
Subject: DLI Scheme
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Sanjay Sadashivrao Mandlik, Shrirang Appa Barne, Ravi Kishan Shukla, Ravindra Kushawaha, Sudheer Gupta, Prataprao  Jadhav, Manoj Kumar Tiwari, Subrata Pathak, Bidyut Baran Mahato

## GOVERNMENT OF INDIA

## MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION NO. 62

TO BE ANSWERED ON: 02.02.2022

## DLI SCHEME

## 62 SHRI SANJAY SADASHIVRAO MANDLIK

SHRI SHRIRANG APPA BARNE

SHRI RAVI KISHAN

SHRI RAVINDRA KUSHWAHA

SHRI SUDHEER GUPTA

SHRI PRATAPRAO JADHAV

SHRI MANOJ TIWARI

SHRI SUBRAT PATHAK

SHRI BIDYUT BARAN MAHATO

Will the Minister of Electronics and Information Technology be pleased to state:-

- (a) whether  the  Government  has  sought  /  invited  applications  recently  from  indigenous companies,  start-ups  and  various  MSME  units  for  its  Design  Linked  Incentive  (DLI) Scheme to develop semiconductor chip in the country.
- (b) if so, the details thereof and the response received by the Government in this regard;
- (c) the details of the aims and objectives of the Design Linked Incentive Scheme;
- (d) the details of facilities likely to be provided by the Government to domestic companies involved in manufacturing of integrated circuits, chipsets, system on chips, systems and IP cores and semiconductor like design;
- (e) whether  the  government  also  proposes  to  provide  any  financial  assistance  to  such domestic companies and if so, the details thereof, and
- (f) the details of eligible criteria set by the Government for the domestic companies involved in semiconductor manufacturing to avail the incentives and benefits under the abovesaid scheme?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAJEEV CHANDRASEKHAR)

(a):  Yes,  Sir.  MeitY  has  announced  the  Design  Linked  Incentive  (DLI)  Scheme  and  invited applications under the Scheme from the domestic companies, start-ups and MSMEs to develop semiconductor chips in the country

(b)  and  (c):  The  DLI  Scheme  aims  to  offer  the  fiscal  support  as  well  as  design  infrastructure support  across  various  stages  of  development  and  deployment  of  semiconductor  design  for Integrated  Circuits  (ICs),  Chipsets,  System  on  Chips  (SoCs),  Systems  &  IP  Cores  and semiconductor linked design over a period of 5 years with the objectives of:

- (i) Nurturing  100  domestic  companies  of  semiconductor  design  for  Integrated  Circuits (ICs),  Chipsets,  System  on  Chips  (SoCs),  Systems  &  IP  Cores  and  semiconductor linked design and facilitating the growth of not less than 20 such companies to achieve turnover of more than ₹1500 Crore in the next 5 years.
- (ii) Achieving significant indigenization in semiconductor and electronic products and IPs deployed in the country, thereby facilitating import substitution and value addition in electronics sector in the next 5 years.
- (iii) Strengthening  the  design  infrastructure  through  incubators  for  semiconductor  design and facilitating access to Startups and MSMEs.

A dedicated DLI web-portal www.chips-dli.gov.in has  been  developed  for  inviting  application from 01st January 2022 onwards.  The applications will be initially invited till 31st December 2024.

Total 41 applicants from domestic companies, Startups and MSMEs have registered on the DLI web-portal and are at different stages of submitting the complete applications.

(d) and (e): The DLI Scheme aims to offer fiscal support as well as design infrastructure support to  the  approved  applicants  across  various  stages  of  development  and  deployment  of  their semiconductor designs as per the following details:

## Fiscal support:

- (i) Product  Design  Linked  IncentiveReimbursement  of  up  to  50%  of  the  eligible expenditure subject to a ceiling of ₹15 Crore per application will be provided as fiscal support to the approved  applicants for their semiconductor designs that can be demonstrated in an operational environment and are ready for volume production.
- (ii) Deployment Linked IncentiveReimbursement of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application will be provided to approved applicants whose semiconductor designs are deployed in electronic products.

Design Infrastructure support: C-DAC (Centre for Development of Advanced Computing), a scientific society, operating under the Ministry of Electronics and Information  Technology,  will  facilitate  an  access  of  design  infrastructure  to  the  approved applicants for designing their semiconductor chips. The design infrastructure will include EDA Tools, IP Cores and support for prototyping the designs in MPW (Multi Project Wafer) manner at semiconductor foundries and post-silicon validation support.

(f):  The  fiscal  support  under  the  DLI  Scheme  will  be  extended  to  the  domestic  companies, startups and MSMEs engaged in semiconductor design, wherein;

- (i) Domestic  companies  shall  be  defined  as  those  which  are  owned  by  resident  Indian citizens as defined in the FDI Policy Circular of 2017 or extant norms. (ii) MSMEs shall be defined as per the Gazette Notification by Ministry of Micro, Small and Medium Enterprises, dated 1st June 2020 or extant norms. (iii) Startups  shall  be  defined  as  per  the  DPIIT  notification  dated  19 th February  2019  or extant norms.

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