Union Cabinet Approves Semicon 2.0 (₹1.275 Lakh Crore), MPMS (₹62,500 Crore), NIPU-2026, and Railway Projects (₹3,907 Crore)

Key facts

• On 16 July 2026, the Union Cabinet approved Semicon 2.0 with a total outlay of ₹1.275 lakh crore to develop a semiconductor manufacturing ecosystem.
• Semicon 2.0 aims to attract nearly ₹4 lakh crore in investments and position India as a global semiconductor hub.
• The Cabinet approved the Mobile Phone Manufacturing Scheme (MPMS) with an outlay of ₹62,500 crore over five years.
• MPMS offers incentives ranging from 2.25% to 5% on eligible sales and an additional 1.5% for domestic sourcing.
• MPMS is expected to increase mobile phone production to approximately ₹39 lakh crore and double exports to ₹15 lakh crore.
• MPMS is expected to generate nearly 60,000 direct jobs.
• The Cabinet approved the National Investment Policy for Urea (NIPU-2026) to promote new gas-based urea manufacturing plants.
• NIPU-2026 provides a Return on Equity (RoE) band of 12% to 16% and estimated savings of over ₹250 crore per new plant.
• NIPU-2026 aims to reduce fertilizer imports and improve long-term economics for domestic producers.
• The Cabinet approved two railway multitracking projects worth ₹3,907 crore: Paradeep–Haridaspur Doubling in Odisha and Rajkharsawan–Dangoaposi Fourth Line in Jharkhand.
• The railway projects cover a total route length of approximately 145 km and are targeted for completion by 2030–31.
• The railway projects aim to improve freight movement and logistics efficiency for industrial and mining regions.