RBI announces sale of dated Government Securities for Rs 28000 crore
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Time of India
3 minutes ago
- Time of India
Four new semiconductor units worth Rs 4,594 crore to come up in Odisha, AP, Punjab: Union minister Ashwini Vaishnaw
Academy Empower your mind, elevate your skills ETtech The Union Cabinet on Tuesday approved four semiconductor projects worth Rs 4,594 crore under the India Semiconductor Mission , taking the total number of approved chip manufacturing facilities in India to ten. The latest approvals push up the projected investments in semiconductor projects to about Rs 1.6 lakh crore across six newly approved proposals are from SiCSem Pvt Ltd , Heterogeneous Integrated Packaging Solutions Pvt Ltd (HIPSPL), Continental Device India Pvt Ltd and Advanced System in Package (ASIP) Technologies. While SiCSem and HIPSPL will set up units at Bhubaneshwar in Odisha, CDIL will expand its existing facility in Punjab's Mohali and ASIP will build a plant in Andhra Pradesh. The proposals are expected to generate 2,034 skilled jobs cumulatively."The complete ecosystem of design, wafer fabrication, packaging, manufacturing of components, assembly, testing, and high-volume final production, is in the works. This will help every sector and dimension of electronics manufacturing," union minister for electronics and information technology Ashwini Vaishnaw government hopes to give the semiconductor ecosystem a significant boost with the latest approvals, given that it will include the country's first commercial compound fab, as well as a highly advanced glass-based substrate semiconductor packaging products from these new plants will have applications in missiles, defence equipment, electric vehicles, railway, fast chargers, data centre racks, consumer appliances and solar power inverters, among others, Vaishnaw said. The new plants are expected to be ready for production in 2-3 years given that all government bodies have promised to provide expeditious permissions, he said, while pointing to previous such plants breaking ground in 6 terms of investment figures, the new plants are smaller than each of the six projects that are already coming up. Tata Electronics is investing Rs 91,000 crore in a fab facility in Gujarat's Dholera and Rs 27,000 crore for an semiconductor assembly and test facility at Morigaon, Assam, both announced in February last year. US-based Micron Technology is investing Rs 23,000 crore in an assembly, testing, marking and packaging (ATMP) plant at Sanand in Gujarat, announced in June SicSem is collaborating with Scotland's Clas-SiC Wafer Fab to establish a Rs 2,066 crore facility for silicon carbide-based compound semiconductors in Bhubaneswar. Set to be the first commercial compound fab in India, it will have an annual capacity of 60,000 wafers and a packaging capacity of 96 million chips."There is a world-wide movement from silicon to silicon carbide. It is a robust material and can sustain high voltage and temperatures. It is used in missiles, space equipment, satellites, rockets, railway engines and telecom tower equipment. Silicon carbide is a strategic necessity for our country,' the minister said. The Bhubaneshwar plant will also do research. 'At IIT-Bhubaneswar, a Rs 45 crore R&D unit has been set up," he will also be home to HIPSPL's vertically integrated advanced packaging and embedded glass substrate unit. A subsidiary of Albuquerque, New Mexico-based high-tech manufacturing firm 3D Glass Solutions Inc, HIPSPL will put in Rs 1,943 crore into the unit. It will be the first in the world to provide 3D packaging on a glass substrate on a commercial scale, Vaishnaw plant will have 11-13% equity investments each from US majors Intel, Lockheed Martin and Applied Materials, as well as venture capital funds, an official planned capacity of this unit will be nearly 70,000 glass panel substrates, 50 million assembled units and 13,200 3D heterogeneous integration modules every ASIP will set up a unit in Andhra Pradesh with an investment of Rs 468 crore, through a technology tie-up with South Korea's APACT, with an annual capacity of 96 million units. The manufactured products will find applications in mobile phones, set-top boxes, automobile applications and other electronic products. Venkata Simhadri, chief executive, ASIP Technologies, told ET: "Our OSAT/ATMP is focused on advanced (2.5D/3.0D) packaging of semiconductors, targeting data centres, high-speed communications and AI applications."New Delhi-based Continental Device will expand its discrete semiconductor manufacturing facility at Mohali with an investment of Rs 117 crore. It will manufacture high-power discrete semiconductor devices such as MOSFETs, IGBTs, schottky bypass diodes and transistors, both in silicon and silicon carbide. The annual capacity of this brownfield expansion will be 158.38 million general manager Prithvideep Singh told ET: "With this investment, we would expand our installed capacity of 600 million units to over 760 million units annually and sharpen our focus on silicon and silicon carbide chips."With a capacity of producing 24 billion chips, the six semiconductor projects that have already got approvals are in various stages of first-ever made in India chip will become available in the next 2-3 months, with three of the projects competing with each other, Vaishnaw a result of domestic chip production, the government expects the average value addition for electronics in India to rise to 30% in the future from 22% now, he said.
Time of India
31 minutes ago
- Time of India
India's bond market signals extended rate pause despite low inflation
Mumbai: India' bond market is signalling a long pause in the central bank's rate-easing cycle despite the retail inflation gauge falling to an eight-year low of 1.55%, way below Mint Road's ordinary legal mandate of 4%. A spike in yields has widened the spread between 10-year bonds and the repo rate to almost one percentage point-the most in 2025. "The widening of the spread between the 10-year yield and repo rate is an indication that the market is pricing in an extended policy pause," said Churchil Bhatt, executive vice-president, investment, Kotak Mahindra Life Insurance. "After the last monetary policy , market participants believe that the bar for further rate cuts is fairly high. Traders have given up hopes of an October rate cut." The spread widened to 99 basis points on Tuesday, compared with around 20 bps just before the Reserve Bank of India (RBI) started the rate-cutting cycle in February under its new governor Sanjay Malhotra. One basis point is a hundredth of a percentage point. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Wildlife Cameras Capture What No One Should See Ohi Blog Undo Bond traders now expect 5.5% as the terminal repo rate, against 5% expected before last week's policy. The central bank has eased rates by a cumulative one percentage point this year. Bonds Corner Powered By RBI allows non-residents to invest rupee surplus in vostro accounts in G-secs The Reserve Bank of India (RBI) on Tuesday said non-residents maintaining special rupee vostro accounts (SRVA) can invest surplus balances in central government securities (G-secs). Debt funds witness best month of FY25 as investors return to safety and yield Indian bonds muted ahead of domestic, US CPI data Bond yields climb to steepest since April at 6.44% India bonds rangebound ahead of state debt supply, CPI data Browse all Bonds News with Inflation as measured by the consumer price index (CPI) fell to 1.55% in July, below the lower bound of the central bank's target range of 2-6% with 4% as the mid-point. Economists had anticipated a CPI reading of below 2%. However, despite the low CPI print, the bond markets are not pricing in a rate cut in October because the central bank's projections show inflation would climb toward the end of FY26. The yield on the benchmark 10-year paper, which serves as the basis for pricing of corporate loans, closed on Tuesday at 6.49%, the highest since early April. Live Events The central bank kept rates on hold and continued with a 'neutral' monetary policy stance last week. While this was expected, the absence of dovish stance along with RBI's inflation forecast of 4.9%-higher than its medium-term target-for the first quarter of next fiscal year dampened hopes of rate cut in October unless there is a sharp growth shock-whether domestic or external. Last week, the RBI retained the growth projection at 6.5%. "The combined fear of the rate cut cycle ending and a higher fiscal deficit-caused by weaker revenue and easing measures to support sectors hit by tariffs-has soured sentiment for the market," said Abhishek Upadhay, economist at ICICI Securities Primary Dealership. Bond dealers said the spread between the 10-year yield and the repo rate was lower in early 2025 because RBI's open market operations skewed the demand-supply balance in favour of bonds as the central bank absorbed much of the supply. The current widening of the spread should also, therefore, be viewed in the context of the absence of this demand.
Time of India
31 minutes ago
- Time of India
Is investing in T-bills via SIP a smart move compared to FDs?
Mumbai: The Reserve Bank of India (RBI) recently allowed individuals to invest in Treasury bills (T-bills) via the systematic investment plan (SIP) on the RBI retail direct platform . An ET analysis shows that bank fixed deposits offer at least 68 basis points higher returns compared to T-bills in the one-year segment. Conversely, T-bills fare better in 91-, and 182-day (3 and 6 months) segments offering around 55 bps over FDs of similar maturities. The RBI had earlier opened government securities trading to retail investors, and the decision to allow investment in T-bills is aimed at further enhancing retail participation in the bond market. With a minimum investment requirement of ₹10,000, investors can also auto-bid with options to invest and reinvest on the platform. Agencies Auto bidding will enable investors to automate their participation in weekly T-bill auctions that happen every Wednesday. Investors can choose an amount to be invested and the system would place bids on their behalf. That amount would be invested at the cut-off rate. Reinvestment of a maturing T-bill can also be automated on the platform. Bonds Corner Powered By RBI allows non-residents to invest rupee surplus in vostro accounts in G-secs The Reserve Bank of India (RBI) on Tuesday said non-residents maintaining special rupee vostro accounts (SRVA) can invest surplus balances in central government securities (G-secs). Debt funds witness best month of FY25 as investors return to safety and yield Indian bonds muted ahead of domestic, US CPI data Bond yields climb to steepest since April at 6.44% India bonds rangebound ahead of state debt supply, CPI data Browse all Bonds News with The RBI launched its retail direct platform in November 2021 with an aim to boost retail participation in government securities. Even as the number of registrations have doubled in the past two years, the total number does not indicate strong participation, experts say. Nearly half a million users have registered on this platform. Live Events
