This raises critical questions about the commitment to fostering innovation and manufacturing in this vital sector.
A parliamentary panel has expressed serious concerns regarding the Ministry of Electronics and IT, citing the surrender of over half the funds designated for semiconductor and display manufacturing projects in 2023-24. This alarming finding was highlighted in a report submitted to the Lok Sabha on Wednesday.
The Standing Committee on Communications and IT, in its fourth report on demand for grants, pointed out a troubling trend: a continuous reduction in allocations for the Digital India Programme from the Budget Estimates (BE) of 2021-22 to those of 2024-25, coupled with the ministry’s consistent underutilization of funds over the years. This raises critical questions about the commitment to fostering innovation and manufacturing in this vital sector.
The Government of India has been actively promoting the development of a domestic semiconductor and display manufacturing ecosystem through the Modified Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India. In the fiscal year 2023-24 (FY24), the programme was allocated Rs 1,503.36 crore. However, as of March 31, 2024, only Rs 681.11 crore had been utilized, resulting in approximately 55% of the allocated funds remaining unspent.
The panel has urged the Ministry of Electronics and IT (MeitY) to adopt more realistic financial projections moving forward and to guarantee optimal utilization of funds through improved planning and a strong monitoring framework. In its response to the panel’s inquiries, the ministry clarified that it can only disburse funds under the India Semiconductor Mission after receiving a formal claim. This highlights the need for a more streamlined and efficient process to ensure that valuable resources are effectively allocated and utilized to support the growth of the semiconductor sector in India.
