What’s in today’s article?

• Why in News?
• Semiconductor manufacturing in India
• Chip assembly plant in Gujarat

Why in News?

The union cabinet, chaired by PM Modi, has approved the proposal of Kaynes Semicon to set up a semiconductor unit in Gujarat with an investment of INR 3,300 Cr. This is the fifth semiconductor unit, and the fourth assembly unit, to receive Cabinet approval.

The proposal was approved under the India Semiconductor Mission (ISM).

Semiconductor manufacturing in India

• Need for domestic manufacturing of semiconductors
  • Foundation stone of modern electronics industry
    • Semiconductors and displays are the foundation of modern electronics industry.
    • These are critical components that power electronics - from computers and smartphones to the brake sensors in cars.
  • To reduce import dependency
    • As India does not produce any semiconductors, the country’s demands are met with imports. 
    • The demand for semiconductors in India will reportedly reach around USD 100 billion by 2025, up from the current demand of USD 24 billion.
  • To overcome the disruption in supply-chain
    • The absence of local manufacturing affected India the most during the lockdown imposed due to the Covid-19 pandemic.
  • Geopolitical significance
    • In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance.
    • These are key to the security of critical information infrastructure.
    • E.g., The Department of Telecommunications has in the past raised concerns over possible bugs in the telecom equipment sold by the Chinese company.
  • Steps taken by the Govt to promote indigenous semiconductor industry 
    • India Semiconductor Mission (ISM)
      • Launched in 2022, ISM aims to establish a robust semiconductor ecosystem within the country. 
      • This initiative, housed under the Digital India Corporation, is tasked with catalysing semiconductor manufacturing, packaging, and design capabilities in India.
      • As an independent business division, the ISM possesses the necessary administrative and financial autonomy to drive the program’s efficient implementation. 
      • Moreover, it boasts an advisory board comprising leading global experts in the semiconductor domain, ensuring strategic guidance and expertise. 
    • SemiconIndia Programme
      • The Union Cabinet approved the Semicon India Programme in 2021 with a budget of INR 76,000 crore. 
      • The program aims to create a sustainable semiconductor and display ecosystem in India.
      • It does so by offering attractive incentives to companies involved in various semiconductor-related sectors, including Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors, Sensors, and Semiconductor Packaging.
    • Design Linked Incentive (DLI) Scheme
      • Uder this, support is provided to 100 domestic companies of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), etc. 
      • The Centre for Development of Advanced Computing (CDAC) is the nodal agency for implementing the DLI Scheme.
    • Modified Scheme for Setting up of Semiconductor Fabs
      • The Modified Scheme for Setting up of Semiconductor Fabs in India provides a 50% fiscal support of the project cost for the setting up of semiconductor fabs in India.
      • This scheme is part of the Semicon India program.
    • Fiscal Support 
      • The Central Government has announced incentives for every part of supply chain including electronic components, sub-assemblies, and finished goods.
      • In total, Government has committed support of Rs. 2,30,000 crore (USD 30 billion) to position India as global hub for electronics manufacturing with semiconductors as the foundational building block.
    • Chips to Startup (C2S) programme
      • The government has also introduced the Chips to Startup (C2S) programme aims to train 85,000 engineers (Bachelors, Masters and Research level combined) qualified in ESDM disciplines over a period of 5 years.
        • ESDM – Electronic System Design and Manufacturing 

Chip assembly plant in Gujarat

• About the news
  • In a significant move towards building a robust semiconductor ecosystem, the Union Cabinet approved the proposal for Kaynes Semicon Pvt Ltd to establish a semiconductor manufacturing unit in Sanand, Gujarat. 
  • This initiative, which involves an investment of ₹3,300 crore, is expected to enhance India's semiconductor production capabilities.
• Key highlights of the plant
  • The capacity of this unit will be 60 lakh chips per day.
  • The chips produced in this unit will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.
• India’s ambitions to become a major chip hub
  • India is striving to become a major semiconductor hub, similar to the United States, Taiwan, and South Korea, by attracting foreign companies to establish operations within the country. 
  • Notably, India has approved an $11 billion fabrication plant by Tata Electronics in partnership with Taiwan’s Powerchip and three chip assembly plants by Tatas, US-based Micron Technology, and Murugappa Group’s CG Power with Japan’s Renesas. 
  • Additional proposals include a ₹78,000-crore fabrication plant by Israel’s Tower Semiconductor and a ₹4,000-crore assembly plant by Zoho, highlighting the country's growing ambitions in the semiconductor industry.

Q.1. What is the significance of the ₹3,300-crore chip assembly plant in Gujarat?

The ₹3,300-crore chip assembly plant in Gujarat is a crucial step towards building a robust semiconductor ecosystem in India, reducing import dependency, and positioning India as a global chip manufacturing hub.

Q.2. How does the India Semiconductor Mission support the semiconductor industry?

The India Semiconductor Mission supports the semiconductor industry by offering financial incentives and fostering a sustainable ecosystem for semiconductor manufacturing, packaging, and design in India.

Source: Cabinet OKs `3,300-cr chip assembly plant in Gujarat | PM India | India Semiconductor Mission | PIB | Economic Times

What’s in today’s article?

• Why in News?
• Background in which the Idea of Unified Lending Interface (ULI) Developed
• What is Unified Lending Interface (ULI)?

Why in News?

• Unified Lending Interface (ULI), the Reserve Bank of India’s (RBI) technology platform to enable frictionless credit, will be launched nationwide soon.
• Similar to Unified Payment Interface (UPI), which has revolutionised the retail payment system in the country, ULI will transform the lending landscape.

Background in which the Idea of Unified Lending Interface (ULI) Developed:

• With rapid progress in digitalisation, India has embraced the concept of digital public infrastructure (DPI) which encourages banks, NBFCs, fintech companies and start-ups to create and provide innovative solutions in
  • Payments,
  • Credit, and
  • Other financial activities.
• For digital credit delivery, the data required for credit appraisal are available with different entities like Central and State governments, account aggregators, banks, credit information companies and digital identity authorities.
  • As these data sets are in separate systems, it creates hindrance in frictionless and timely delivery of rule-based lending.
• A pilot project for the digitalisation of Kisan Credit Card (KCC) loans of less than ₹1.6 lakh began in 2022.
  • The initial results of the KCC pilot were encouraging as it enabled doorstep disbursement of loans without any paperwork.
• In 2023, the RBI had announced the setting up of a Public Tech Platform for Frictionless Credit which is now branded as the ULI.

What is Unified Lending Interface (ULI)?

• About: The ULI platform will facilitate a seamless and consent-based flow of digital information, including land records of various states, from multiple data service providers to lenders.
• Objectives:
  • It will cut down the time taken for credit appraisal, especially for smaller and rural borrowers.
  • It is aimed to bring about efficiency in the lending process in terms of reduction of costs, quicker disbursement, and scalability.
• Working:
  • The ULI architecture has common and standardised APIs (Application Programming Interface), designed for a ‘plug and play’ approach to ensure digital access to information from diverse sources.
  • For instance, taking the example of a dairy farmer seeking a loan. The lender can find data from the milk cooperative to know about -
    • Cash flows;
    • Land ownership status from land records of States; and
    • Insights into his financial condition through farming patterns.
  • Thus, with the help of ULI the lenders can immediately know the income of the loan applicant and credit eligibility.
  • Thus, decision making would be automated and loans could be sanctioned and disbursed within minutes.
• Significance:
  • The platform will reduce the complexity of multiple technical integrations by digitising access to customer’s financial and non-financial data that otherwise resided in disparate silos.
  • It is expected to cater to large unmet demand for credit across various sectors, particularly for agricultural and MSME borrowers.
  • Tenant farmers who often find it difficult to access agricultural credit can also avail loans by establishing their identity not through his land holding but through the end use of funds being disbursed.
  • The ‘new trinity’ of JAM-UPI-ULI will be a revolutionary step forward in India’s digital infrastructure journey.
• The JAM (Jan Dhan, Aadhar and Mobile) trinity is a tool used by the government to transfer cash benefits directly to the bank account of the beneficiary.

Q.1. What is the Open Credit Enablement Network (OCEN)?

OCEN, incubated at think tank iSPIRT, was launched in 2020. OCEN is a framework of application programming interfaces (APIs) that aims to improve access to credit for micro, small, and medium enterprises (MSMEs) in India.

Q.2. What is Unified Payment Interface (UPI)?

UPI is a real-time payment system launched in India in April 2016 by the National Payments Corporation of India (NPCI). It's a system that unifies various banking functions, smooth fund routing, and merchant payments under one roof, all within a single mobile application (of any partner bank).

Source: What is the Unified Lending Interface by the RBI? | Explained | IE

What’s in today’s article?

• Why in the News?
• About National Institute of Animal Biotechnology (NIAB)
• About BioE3 Policy
• News Summary

Why in the News?

• The National Institute of Animal Biotechnology (NIAB) is working to decode the genetic blueprints for conservation of indigenous cattle breeds using Next Generation Sequencing (NGS) data and genotyping technology.

About National Institute of Animal Biotechnology (NIAB)

• The National Institute of Animal Biotechnology (NIAB) is a premier research institution, established under the Department of Biotechnology, Ministry of Science and Technology.
• Located in Hyderabad, NIAB focuses on cutting-edge research in animal biotechnology, aiming to improve animal health, productivity, and welfare.
• The institute's research activities cover a wide range of areas, including genetics, genomics, vaccine development, diagnostics, and reproductive biotechnology.
• NIAB's mission is to address the challenges faced by the livestock sector in India, which is a vital component of the country's economy, especially for rural populations.
• By developing innovative biotechnological solutions, NIAB aims to enhance the quality and quantity of animal products like milk, meat, and eggs, while also ensuring better disease management and overall animal welfare.
• The institute is also involved in capacity building, offering training programs for students and professionals in the field of animal biotechnology.

About BioE3 Policy

• The Government of India has recently launched the BioE3 Policy, which stands for "Bioenergy, Bioeconomy, and Bioproducts for Environment and Employment."
• This policy is a significant step towards promoting sustainable development and addressing environmental challenges while boosting economic growth through the bioeconomy sector.
• Key Objectives:
  • Promote Bioenergy: The policy aims to increase the production and utilization of bioenergy as a renewable energy source. This includes the promotion of biofuels, biogas, and biomass-based energy solutions.
  • Boost Bioeconomy: The BioE3 Policy focuses on expanding the bioeconomy by encouraging the development and commercialization of bioproducts. These include bioplastics, biochemicals, and other value-added products derived from biological resources.
  • Environmental Sustainability: A core objective of the BioE3 Policy is to promote environmental sustainability. By encouraging the use of renewable biological resources and reducing reliance on non-renewable materials, the policy aims to mitigate environmental degradation, reduce carbon emissions, and promote a circular economy.
  • Employment Generation: The policy also focuses on creating employment opportunities in the bioeconomy sector. By supporting innovation, research, and development in bio-based industries, the BioE3 Policy aims to generate jobs, particularly in rural areas, thereby contributing to inclusive economic growth.
• Strategic Components:
  • Research and Development (R&D): The policy emphasizes the need for increased R&D in bio-based technologies and processes.
  • Infrastructure Development: The BioE3 Policy also focuses on developing the necessary infrastructure for the bioeconomy, including bio-refineries, bioproduct manufacturing units, and bioenergy plants.
  • Public-Private Partnerships (PPP): To achieve its goals, the policy encourages collaboration between the government, private sector, academia, and research institutions.
  • Regulatory Support: The BioE3 Policy includes measures to streamline regulations and provide incentives for bio-based industries. This includes tax benefits, subsidies, and simplified approval processes to attract investment and encourage the growth of the bioeconomy.

News Summary

• The National Institute of Animal Biotechnology (NIAB) is working to decode the genetic blueprints for conservation of indigenous cattle breeds using Next Generation Sequencing (NGS) data and genotyping technology.
• This will help to establish molecular signatures for registered cattle breeds.
• A good number of ‘bio-scaffolds’ (for repairing tissues), both natural as well 3D printed, are being produced for cell/drug delivery, bio-banking and using animal stem cells enriched scaffolds as various therapeutic interventions.
• Scientists are also working on generating biomarkers of susceptibility and resistance to TB in native and crossbred cattle.

A biomarker (metabolite and protein) has been developed for early assessment of nutritional stress-induced negative energy balance leading to decreased productivity and infertility in cattle population

Q1 What is Biochar in Agriculture?

Biochar is a charcoal-like substance made from biomass waste, such as wood, agricultural waste, or paper mill waste, that is used to improve soil health in agriculture.

Q2. What is Animal Cell Culture?

Animal cell culture is described as the in vitro maintenance. and proliferation of animal cells that will continue to grow. outside the living organisms if supplied with appropriate. nutrients and growth conditions.

Source: NIAB using next generation sequencing for genetic print of indigenous cattle