The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Semicon 2.0 for the development of India's semiconductor design and manufacturing ecosystem, with a total budget outlay of Rs.1,27,500 crore.

Recognising the requirement for a sustained and long-term support to Semiconductor sector in India and also to build on the momentum generated under Semicon1.0, Semicon 2.0 aims to further the Government's commitment towards putting our country on the semiconductor map of the world.

Semicon 2.0 is aimed to holistically build the semiconductor ecosystem on the following six pillars:

First pillar: Design: Semicon 2.0 will build upon the initial success in chip design. With 105 startups already started developing chips, the focus is on deepening the design ecosystem. Further, building blocks have been identified for the development of strategic and commercial products. Under Semicon 2.0, the aim is to develop IPs, designs of chips and systems with this approach. The work under Semicon 2.0 will place India as a key semiconductor chip design IP country.

Second pillar: Machines and materials: Companies involved in the manufacturing and R&D of the machines and manufacturing of materials, chemicals and gases that are essential for manufacturing semiconductors will be incentivized. This will lay the foundation for the sustainable growth of the semiconductor industry. This will also help in developing the precision manufacturing industry in our country.

Third pillar: Setting up more fabs: With the first fab scheduled to be commissioned in 2028, the world is showing greater confidence in India’s semiconductor strategy. Efforts will be made to attract more manufacturers to come to India and set up fabs to manufacture chips. This will include silicon fabs, compound semiconductor fabs, discrete component fabs, display fabs, etc.

Fourth pillar: Further strengthening the ATMP/OSAT industry: With the success of ATMP units, the world is now looking at India as an alternative location for setting up ATMP/OSAT units. These will be actively encouraged with a focus on getting some of the most advanced ATMP technologies to India.

Fifth pillar: Research & Development: The semiconductor journey has started with 28nm-110nm as the node. Now, the focus will be on developing more advanced nodes and other advanced technologies in collaboration with leading R&D centres within and outside India.

Sixth pillar: Talent development: With 315 universities training students on complex chip design using the latest EDA tools, around 68,000 students have already been trained. It will be developed further and deepen the level of training while in college. Further, the industry will be actively engaged in deepening the clean room, fab construction and other ecosystem training as well.

Further, Semicon 2.0 will support economic growth across all sectors, strengthen national security through enhanced supply chain resilience, and help establish technological leadership in critical sectors. Approach of building the complete ecosystem, will catalyse semiconductor design and manufacturing in India.

Progress of ISM 1.0:

Manufacturing: So far, twelve (12) manufacturing units have been approved with a cumulative investment of over Rs.1.64 Lakh Crore. These include one Silicon fab, one Silicon Carbide fab, an integrated Gallium Nitride Micro LED Display Fab and nine (9) packaging units expected to cater to chip requirements of sectors such as consumer appliances, industrial electronics, automobiles, power electronics, telecommunications, aerospace, etc. Out of the 12 approved proposals, three companies, Micron, Kaynes and CG Semi have started commercial production and one more are expected to start in 2026.


Design: Twenty-four (24) semiconductor design projects from start-ups and MSMEs have been approved for financial support, while 105 start-ups/MSMEs have been granted access to industry-standard Electronic Design Automation (EDA) tools. These companies are engaged in designing chips and SoCs for a range of strategic and commercial applications, including satellite communications, drones, surveillance cameras, Internet of Things (IoT) devices, LED drivers, AI systems, telecom equipment, and smart meters. These companies are at different stages of design and development and will enter the deployment stage after successful prototyping.

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Cabinet approves infrastructure projects between National Highway-19 and Varanasi Ring Road in Uttar Pradesh worth Rs.14447.64 crore
July 15, 2026

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, today has approved the development of a Link/Connector Corridor between National Highway-19 (NH-19) and the Varanasi Ring Road with riverbank connectivity along the River Ganga for the decongestion of Varanasi City in Uttar Pradesh. The 46.039 km project, comprising a six-lane elevated main carriageway, an iconic cable-stayed bridge, an extradosed Foot Over Bridge-cum-Major Bridge, loops, ramps, link roads and service roads, will be implemented under the Hybrid Annuity Model (HAM) at a total capital cost of Rs.14,447.64 crore including a civil construction cost of Rs.6,037.85 crore (including utility shifting, excluding GST) and a land acquisition cost of Rs.541.11 crore under NH(O).

The project will provide seamless connectivity between NH-19 and the Varanasi Ring Road, significantly decongesting the city’s road network and improving urban mobility. Designed for an operating speed of 80–100 km/h, it is expected to reduce the average travel time across the project influence area from approximately 60 minutes to 20 minutes, representing a reduction of nearly 67 per cent. Travel time between NH-19 and Kashi Railway Station will be reduced from approximately 50 minutes to about 25 minutes, resulting in a saving of about 25 minutes (nearly 50 per cent).

Aligned with the PM Gati Shakti National Master Plan, the corridor will strengthen multimodal connectivity by providing seamless access to major highways, railway stations, Lal Bahadur Shastri Airport and Ramnagar IWAI Port, while significantly improving connectivity to key religious, educational and cultural landmarks, including the Kashi Vishwanath Temple, Banaras Hindu University (BHU), Namo Ghat, Ramnagar Fort and the Ghats of Varanasi. By linking important economic, social and logistics nodes, the project will improve logistics efficiency, enhance road safety, facilitate tourism and pilgrimage, and support sustainable regional economic growth across eastern Uttar Pradesh.

The corridor has been conceived as a transformative urban mobility project to decongest the road network of Varanasi & Chandauli by providing a high-speed, access-controlled connection between NH-19, the Varanasi Ring Road (NH-135B), Ramnagar/ BHU and other major urban destinations. With more than 15 crore tourists and pilgrims visiting Varanasi every year, the project will significantly improve connectivity to major religious, educational and cultural landmarks, including the Kashi Vishwanath Temple, Banaras Hindu University (BHU), Namo Ghat, Ramnagar Fort, the Ghats of Varanasi, and Kashi Railway Station, while substantially reducing congestion on the existing city road network. An elevated spur between BHU/Lanka and Samne Ghat will further ease traffic congestion at the heavily trafficked Lanka Junction by separating through traffic from local traffic movements.

The project will improve road safety through controlled-access movement, reduce vehicle operating costs and emissions, enhance travel reliability, and facilitate the efficient movement of passenger and freight traffic. It will also decongest NH-19, the BHU-Ramnagar Corridor and NH-35 by diverting through traffic away from the densely developed urban core.

The project incorporates several landmark engineering features, including an iconic 910 m cable-stayed bridge across the River Ganga, a 1.32 km extradosed Foot Over Bridge-cum-Major Bridge with travelators providing seamless pedestrian connectivity to the Kashi Vishwanath Temple, a Rail Over Bridge over the existing/proposed Malviya Bridge, dedicated emergency parking bays, noise barriers, façade lighting and architectural elements inspired by the cultural heritage of Varanasi. These features will not only improve transportation efficiency but also enhance the city’s urban landscape, create an iconic addition to Varanasi’s skyline, and reinforce its position as one of India’s foremost religious and cultural destinations.

Planned in accordance with the PM Gati Shakti National Master Plan, the corridor will strengthen multimodal connectivity by linking one Economic Node (Chandauli SEZ), one Social Node (Chandauli Aspirational District) and six major Logistics Nodes, namely Lal Bahadur Shastri Airport, Kashi Railway Station, Banaras Railway Station, Varanasi City Railway Station, Pt. Deen Dayal Upadhyay Junction and Ramnagar IWAI Port. By providing seamless connectivity between these transport hubs and key destinations such as the Kashi Vishwanath Temple, Banaras Hindu University (BHU), Namo Ghat, Ramnagar Fort and the Ghats of Varanasi, the project will enhance multimodal integration, improve logistics efficiency, facilitate tourism and pilgrimage, and support sustainable regional economic development across eastern Uttar Pradesh.

Overall, the proposed Ganga Elevated Corridor will create a modern, high-capacity urban transport corridor that transforms mobility in Varanasi by providing faster, safer and more reliable connectivity, significantly reducing congestion, strengthening multimodal integration, enhancing tourism and pilgrimage infrastructure, and supporting sustainable economic growth in line with the vision of PM Gati Shakti and Viksit Bharat.

Map of Corridor: