{"id":113419,"date":"2026-07-16T12:24:37","date_gmt":"2026-07-16T06:54:37","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=113419"},"modified":"2026-07-16T12:24:37","modified_gmt":"2026-07-16T06:54:37","slug":"cabinet-approves-semicon-2-0","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/cabinet-approves-semicon-2-0\/","title":{"rendered":"Cabinet Approves Semicon 2.0, Mobile Manufacturing, Urea Plants, and Highway Projects"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>Semicon Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has cleared several major projects, including Semicon Mission 2.0 worth Rs. 1.27 lakh crore.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Background<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has been pursuing an aggressive strategy to strengthen domestic manufacturing and reduce dependence on imports across critical sectors.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This aligns with the broader <\/span><b>Atmanirbhar Bharat<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Make in India<\/b><span style=\"font-weight: 400;\"> initiatives. The Cabinet approvals cover four major areas:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Semiconductor manufacturing: critical for electronics, AI, and defence<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Mobile phone manufacturing: a key export sector<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Urea production: essential for agricultural self-sufficiency<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Highway infrastructure: for improved connectivity<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These decisions come at a time when global supply chain disruptions, memory chip shortages, and geopolitical tensions have highlighted the need for domestic capabilities.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>India Semiconductor Mission 2.0<\/strong><\/h2>\n<ul>\n<li aria-level=\"1\"><b>About the Programme<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The Cabinet has approved Rs. 1.27 lakh crore for the second edition of the <strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/india-semiconductor-mission-ism\/\" target=\"_blank\">India Semiconductor Mission<\/a><\/strong> (ISM 2.0), aimed at developing India&#8217;s semiconductor design and manufacturing ecosystem.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Expected Outcomes<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Investments of around Rs. 4 lakh crore are expected to be attracted.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Semiconductor production worth Rs. 2 lakh crore during the scheme period.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Self-reliance in indigenous chip production by the end of the programme.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Six Pillars of Semicon 2.0<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Design of chips<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Development of chips<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Production of indigenous chips<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Support for raw material suppliers including minerals and gases<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Meeting chip requirements for AI devices<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Building end-to-end semiconductor value chain<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Comparison with ISM 1.0<\/b>\n<ul>\n<li><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/india-semiconductor-mission-ism\/\" target=\"_blank\"><span style=\"font-weight: 400;\">ISM 1.0<\/span><\/a><span style=\"font-weight: 400;\"> was allocated Rs. 76,000 crore<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Under ISM 1.0, the government approved 12 projects with cumulative investments of around Rs. 1.64 lakh crore<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Majority of investment came from Tata Electronics and its semiconductor arm<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Strategic Timing<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The programme comes at a critical time when:<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The world is facing a memory chip shortage<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Companies are working on enhancing production capacity<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Demand for AI-related chips is rising<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Geopolitical tensions are affecting global supply chains<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Mobile Phone Manufacturing Scheme (MPMS)<\/strong><\/h2>\n<ul>\n<li aria-level=\"1\"><b>About the Scheme<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The Cabinet approved an outlay of Rs. 62,500 crore for the Mobile Phone Manufacturing Scheme to build Indian brands, achieve technological sovereignty, and scale up local mobile production.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Key Features<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Incentive support on eligible sales at rates ranging from 2.25% to 5%<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Additional incentive of up to 1.5% linked to domestic sourcing of key components and sub-assemblies<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Additional incentive of 3% on eligible sales for design and R&amp;D of the product<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Focus on building Indian brands in the mobile phone sector<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Expected Outcomes<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Cumulative mobile phone production expected to reach around Rs. 39 lakh crore during the scheme tenure<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Significant increase in exports of mobile phones<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Generation of around 60,000 direct jobs<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Creation of Indian patents in design and R&amp;B<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>National Investment Policy for Urea (NIPU 2026)<\/strong><\/h2>\n<ul>\n<li aria-level=\"1\"><b>About the Policy<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The Cabinet approved the National Investment Policy for Urea (NIPU 2026) to set up nine new gas-based urea plants with a production capacity of 10 million tonnes, aiming to make India self-reliant in the most widely consumed fertiliser.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Current Situation<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Annual urea demand: Rising at 5% annually<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Domestic production: Around 30 million tonnes<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Total requirement: 40 million tonnes<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Imports: 10 million tonnes to meet the shortage<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Key Changes from NIP 2012<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Separation of fixed and variable costs for greater transparency<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Viable Return on Equity (RoE) band with a floor at 12% and ceiling at 16%<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Foreign exchange risk mitigation through conversion of fixed costs into rupees after four years based on prevailing exchange rates<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Expected Savings<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">These measures are estimated to result in savings of over Rs. 250 crore for each plant established under NIPU-2026 compared with NIP-2012<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Equal Treatment<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Incentives under the policy will be the same for private, government, and cooperative projects<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Historical Context<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Under the 2012 NIP (expired in October 2019), six new urea units were set up:\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Four through joint ventures of nominated public sector undertakings<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Two units by private companies<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Significance of Cabinet Decisions<\/strong><\/h2>\n<ul>\n<li aria-level=\"1\"><b>For Manufacturing Sector<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Boost to indigenous manufacturing across critical sectors<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Reduced import dependence for semiconductors, mobile phones, and urea<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Job creation across multiple industries<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Technology transfer and skill development opportunities<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>For Economic Growth<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Massive investment inflows expected from these schemes<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Export growth particularly in mobile phones and semiconductors<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Multiplier effects on ancillary industries<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Foreign exchange savings through import substitution<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>For Strategic Autonomy<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Semiconductor self-reliance reducing geopolitical vulnerability<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Fertiliser security critical for agricultural sector<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Technology sovereignty in strategic sectors<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Enhanced supply chain resilience<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>For Infrastructure<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Improved connectivity in Varanasi with modern highway infrastructure<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Reduced congestion and travel times<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Alignment with PM Gati Shakti for integrated infrastructure development<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Way Forward<\/strong><\/h2>\n<ul>\n<li aria-level=\"1\"><b>For Semicon 2.0<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Timely implementation of approved projects<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Attracting global players and technology partners<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Building a talent pool through education and training<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Developing a supporting ecosystem for materials and equipment<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>For Mobile Manufacturing<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Strengthening the domestic component ecosystem<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Encouraging Indian brands to scale globally<\/span><\/li>\n<li><span style=\"font-weight: 400;\">R&amp;D investments for innovation<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Export market development<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>For Urea Production<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Ensuring the timely commissioning of new plants<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Gas supply security for the plants<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Efficiency improvements in existing units<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Promoting balanced fertiliser use<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>For Highway Projects<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Adherence to timelines and quality standards<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Environmental safeguards during construction<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Integration with other transport modes<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Sustainable maintenance frameworks<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Source:<\/b><strong> <a href=\"https:\/\/www.thehindu.com\/business\/cabinet-okays-semicon-20-mobile-phone-manufacturing-scheme-highways-and-urea-plants\/article71226334.ece\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a> | <a href=\"https:\/\/theprint.in\/economy\/cabinet-approves-rs-1-27-lakh-crore-for-semicon-mission-2-0\/2987130\/\" target=\"_blank\" rel=\"nofollow noopener\">Print<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cabinet has cleared Semicon Mission 2.0, mobile manufacturing scheme, new urea plants among other projects.<\/p>\n","protected":false},"author":21,"featured_media":113428,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,8710,22,59],"class_list":["post-113419","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-mains-articles","tag-semicon","tag-upsc-current-affairs","tag-upsc-mains-current-affairs-tag","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/113419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=113419"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/113419\/revisions"}],"predecessor-version":[{"id":113432,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/113419\/revisions\/113432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/113428"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=113419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=113419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=113419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}