India, US pledge $1 bn for green energy

Among key decisions taken during the Modi-Biden bilateral meet in the US was the announcement to set up a semiconductor plant backed by America in India and $1 billion funding for clean energy resources.

India-US also inked two agreements — one on an economic framework and other on a drug framework to prevent synthetic drugs. The bilateral meet was held at Wilmington, Delaware, on the east coast of US. Details of the meeting were posted on the Ministry of External Affairs (MEA) website on Sunday morning.

Modi and Biden hailed a watershed arrangement to establish a new semiconductor fabrication plant. “It is focused on advanced sensing, communication and power electronics for national security, next generation telecommunications and green energy applications,” the MEA said. The ‘fab-unit’ will be established to manufacture infrared, gallium nitride and silicon carbide semiconductors. This will be backed by a strategic technology partnership between Bharat Semi, 3rdiTech and the US Space Force.

The semiconductor supply chain will be bettered with the GlobalFoundries (GF), creating a GF Kolkata Power Centre for research and development in chip manufacturing — used for vehicles, AI and data centres.

Foreign Secretary Vikram Misri said the India’s National Investment and Infrastructure Fund and the US International Development Finance Corporation will provide up to $500 million each (total $1 billion) to anchor a Green Transition Fund. This is part of the US-India roadmap to build safe and secure global clean energy supply chain for renewable energy, power grid and transmission technologies.