Cabinet Approves ₹1.27 Lakh Crore ISM 2.0: Subsidies Slashed for Fabs, Focus on Chip Design & Supply Chain

₹1.27 Lakh Crore Semicon 2.0 Notified: Boosts Domestic Chip Design, Manufacturing, and R&D

The government notified the operational framework for Semicon 2.0, a ₹1.27 lakh crore program to boost domestic chip design, manufacturing, and supply chain. It includes six pillars, with incentives for chip design, fabrication plants, packaging, and R&D. This is critical for India's semiconductor ecosystem and self-reliance.

₹1.27 Lakh Crore Semicon 2.0 Launched: India Targets Domestic Chip Design, 1 Lakh More Engineers

Prime Minister Modi inaugurated Semicon India 2026, highlighting India's progress in semiconductor manufacturing. The government launched Semicon 2.0 with ₹1.27 lakh crore outlay, shifting focus to domestic chip design, talent development, and supply chain localisation. This is critical for national security and tech self-reliance.

₹1,27,500 Cr Semicon 2.0 Notified: 40% Silicon Fab Subsidy, 35% ATMP Incentives

The government has notified the ₹1,27,500 crore Semicon 2.0 scheme, a major push to build India's semiconductor ecosystem from chip manufacturing to design and packaging. With tiered fiscal support – 40% for silicon fabs, 35% for compound/display fabs and advanced packaging – the scheme aims to achieve self-reliance and attract global players. For students, this is a high-priority policy with clear Prelims data points and Mains implications for Atmanirbhar Bharat and industrial strategy.

NPCIL Plans New Design Vertical for Private Players Under SHANTI Act; PHWR Cost at Rs 18 Cr/MWe

India's nuclear sector opens to private participation under the SHANTI Act 2025. NPCIL plans a new design vertical to provide PHWR technology support to private players and state governments. With current capacity at 8.7 GWe and a target of 100 GWe by 2047, PHWRs at Rs 18 crore/MWe are the most cost-effective option compared to foreign reactors.

Govt to Mandate Design-in-India Chips for Smart Meters by Mid-2028, 7.24 Cr Installed

The government plans to mandate domestically designed and manufactured chips in smart meters by mid-2028 to counter cybersecurity threats and reduce import dependence. With 7.24 crore smart meters already installed under various schemes, this move also aims at cost reduction and grid modernization under the new National Electricity Policy.

Kudankulam Nuclear Reactor Costs Surge 55%: Impact on India's Nuclear Expansion Plans

Cost of four under-construction nuclear reactors at Kudankulam has risen by 55% to ₹1,38,330 crore, driven by Russia-Ukraine war. This poses a challenge to India's ambitious nuclear expansion plans and could increase electricity tariffs, especially as the government opens the sector to private participation.

Cabinet Approves ₹8,970 Cr, 135.87 km NH-15 Guwahati-Tezpur Corridor with ELF for IAF

The Union Cabinet approved a 135.87 km, ₹8,970 crore Guwahati-Tezpur corridor on NH-15 in Assam, developed on BOT toll mode. It includes an emergency landing facility (ELF) for IAF, five bypasses, and connectivity to 8 PM Gati Shakti economic nodes. This project is a high-yield topic for Prelims data and Mains infrastructure/regional development.

Cabinet Approves ₹13,041 Cr for Railway Multi-Tracking & NH-22 Highway to Decongest Howrah-Chennai Route

The Union Cabinet approved four railway multi-tracking projects and a four-lane highway project worth ₹13,041 crore to decongest the Howrah-Chennai high density route and improve connectivity in Bihar. These projects will add 410 km to the railway network and boost freight capacity by 76 MTPA, linking ports and industrial hubs.