Context
Recent government remarks on the performance of the Design Linked Incentive (DLI) Scheme have brought focus to its role in fostering semiconductor design and enhancing domestic capabilities in the electronics sector.
About the Design Linked Incentive (DLI) Scheme
- The Design Linked Incentive (DLI) Scheme is implemented by the Ministry of Electronics and Information Technology (MeitY) under the Semicon India Programme to strengthen India’s fabless semiconductor ecosystem.
- The scheme seeks to reduce import dependence, improve supply-chain resilience, and enhance domestic value addition by supporting semiconductor design and deployment.
- It covers the entire semiconductor design lifecycle, including Integrated Circuits (ICs), chipsets, Systems-on-Chip (SoCs), systems, IP cores, and other semiconductor-linked designs.
- C-DAC (Centre for Development of Advanced Computing) is the nodal agency for its implementation.
- Start-ups and MSMEs are eligible for financial incentives and design infrastructure support, while other domestic companies can avail deployment-related incentives.
Incentives under the Scheme
- Product Design Linked Incentive: Reimbursement of up to 50% of eligible expenditure, subject to a maximum of ₹15 crore per application.
- Deployment Linked Incentive: Incentives ranging from 6% to 4% of net sales turnover for five years, subject to a ceiling of ₹30 crore per application.
- The minimum cumulative net sales requirement over five years is ₹1 crore for start-ups and MSMEs and ₹5 crore for other domestic companies.
