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Design-Linked Incentive Scheme Overview


Since announcement, the Design-Linked Incentive scheme (DLI) scheme has approved only seven start-ups, markedly short of its target of supporting 100 over five years.


GS III: Indian Economy

Design-Linked Incentive Scheme Overview:

The scheme is geared towards providing financial incentives and design infrastructure support throughout the development and deployment phases of semiconductor designs, including Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design(s) over a period of 5 years.

Objectives of the Scheme:
  • Nurturing Growth: Facilitating and nurturing the growth of domestic companies, startups, and MSMEs in the semiconductor design sector.
  • Indigenization Goals: Achieving significant indigenization in semiconductor content and IPs for electronic products, promoting import substitution and adding value to the electronics sector.
  • Access Facilitation: Strengthening and facilitating access to semiconductor design infrastructure for startups and MSMEs.
Duration and Components:
  • Scheme Duration: Initially spanning three years from January 1, 2022.
  • Chip Design Infrastructure Support: C-DAC will establish the India Chip Centre, hosting cutting-edge design infrastructure (EDA Tools, IP Cores, MPW support, and post-silicon validation) accessible to supported companies.
  • Product Design Linked Incentive: Reimbursing up to 50% of eligible expenditure, capped at ₹15 Crore per application, providing fiscal support to approved applicants engaged in semiconductor design.
  • Deployment Linked Incentive: Offering incentives of 6% to 4% of net sales turnover over 5 years, capped at ₹30 Crore per application, for approved applicants deploying semiconductor designs in electronic products.
Nodal Agency:
  • C-DAC: The Centre for Development of Advanced Computing (C-DAC) will serve as the nodal agency overseeing the implementation of the scheme.

-Source: The Times of India

February 2024