Govt starts consultation to develop indigenous chips, modules for power grids

The government has started a consultation process to explore development of indigenous power semiconductors and modules for power grids.

The Ministry of Electronics and IT (MeitY), along with the Power Ministry and Powergrid, on Thursday invited industry players for a pre-request for proposal stakeholder consultation to gather input before issuing the final proposal.

"Ministry of Electronics and IT (MeitY), Ministry of Power and Powergrid invite you for a Pre-RFP Stakeholder Consultation for the indigenous design, development, qualification and supply of SiC MOSFET-based power modules for VSC-HVDC," MeitY said in a social media post.


VSC-HVDC (Voltage-Sourced Converter High-Voltage Direct Current) is an advanced power transmission technology that uses semiconductors to convert electricity waves according to the requirements of all electrical appliances across homes, offices and industries.

According to details shared by MeitY on its website, the initiative aims to build domestic capability across the power semiconductor value chain - device design, module engineering, fabrication, packaging, assembly, testing, qualification and system integration.

Interested entities can send their queries and suggestions by October 8 and the consultation is scheduled to be held on October 14.

The objective of the government is to reduce dependence on imported technology for strategic grid applications.

Electricity grids in the country, classified as critical infrastructure, are highly dependent on imported equipment.

Consultancy firm McKinsey, in a report, said that in the absence of effort to indigenise power gears, the industry could face a production shortfall of more than $130 billion that could push import dependence to meet domestic and export demand beyond 70% and conflict with India's objective of self-reliance.

"This could become India's largest import category, rivaling oil and gas," the McKinsey report said.

According to the report, India's consumption of electrical equipment grew to $59 billion, an increase of $24 billion between 2020 and 2025.

In 2025, India produced only $32 billion for the domestic market, excluding imports; consequently, India imported $15 billion more in 2025 relative to 2020, sharply increasing its import dependence from 22 to 33%.