As per the sources, the Union cabinet is expected to approve a Rs 25,000 crore scheme for semiconductor manufacturing on Wednesday.

According to sources, the cabinet has likely deferred a decision on the PM PRANAM scheme.

The cabinet meeting is currently in session, and announcements are expected to be made on Wednesday afternoon.

The government is eager to include semiconductors in the production-linked incentive (PLI) scheme. In May, finance minister Nirmala Sitharaman emphasised the government's priority of incentivizing and facilitating investments in India through PLI schemes, which are being expanded beyond the initial 14 sectors to include semiconductors and solar components.

Inviting Japanese investors to invest in India, the minister said the country had relaxed various restrictions to ensure greater ease of doing business and draw more investments. Sitharaman interacted with business leaders on the theme of "Rising Investment Opportunities: Destination India."

However, some sources reported earlier this week that as of now PLI scheme for semiconductors is not in the pipeline.

The government had initially earmarked incentives worth Rs 1.97 lakh crore under various PLI schemes over a five-year period to spur domestic manufacturing.