NEW DELHI: The government is likely to appoint Intel India head Nivruti Rai as the MD and CEO of Invest India, the government’s investment promotion agency. Sources told this newspaper that this is a strategic hiring, given the government has failed in attracting any serious semiconductor player despite doling out subsidies for setting up units in the country.
With Rai at the helm of Invest India and her connections with Intel, the government hopes to get some investment from the US-based chipmaker, the source told the newspaper. “The plan is to make Intel announce its investment before the 2024 general elections. Intel making investment in the semiconductor sector in India will be a big moral victory for the Narendra Modi-led government, which will be seeking re-elections in 2024,” the source said. The post of MD and CEO of Invest India has been lying vacant since the exit of Deepak Bagla early this year. Manmeet K Nanda, joint secretary, DPIIT, is currently the interim MD and CEO.
Though a commerce ministry official confirmed that the government is considering a few names for the post, but he declined to give more details on the same. Meanwhile, Intel India confirmed Nivruti Rai is leaving the company. Intel India country head and VP of Intel Foundry Services, Rai, is departing Intel after 29 years with the company, a company statement said. The government launched the Semicon India Programme in December 2021, allocating Rs. 76,000 crore for the development of the semiconductor and display manufacturing ecosystem in India. Last year, the government modified the policy and announced a 50% incentive.
Following the announcement, the government received three applications -- one from Vedanta-Foxconn joint venture, another from Next Orbit Ventures, which has partnered with Israel’s Tower Semiconductor, and a third from Singapore-based IGSS Ventures. But nothing concrete happened, and the government had to invite fresh applications for setting up semiconductor fabs and display dabs in India from 1 June 2023.
Intel recently made an announcement that it will invest $33 billion for developing two chip making plans in Germany. India is getting tough competition from both the US and Europe, which are trying to attract chip makers through a combination of subsidies and favorable policies.