IT Secy S Krishnan said that the govt is looking to expand benefits under the DLI to support larger domestic companiesPTI

New Delhi

Critical semiconductor production projects may continue to get up to 70 per cent of total project cost as incentive from the Centre as well as states, a senior government official said on Tuesday.

Speaking at the Semicon India event, Electronics and IT Secretary S Krishnan said that the government is looking to expand benefits under the design linked incentive (DLI) to support larger domestic companies as well as enhance grants provided under it.

Krishnan said the support that India provides for semiconductor projects is  unprecedented and a total of around USD 30 billion in incentive and various other benefits is under implementation.

The central government has been giving 50 per cent capital support while the state government gives incentives of around 20 per cent of the total project cost.

"I've never come across in all these years a programme which is as generous as industrial policy support which almost amounts to 70 per cent of the cost of a particular project. This 70 per cent is disbursed on a pari-passu basis... Assistance of this level will definitely continue for certain segments which are crucial and important," Krishnan said.