The authorities is analyzing particulars of an Indian tech firm concerned in semiconductor analysis, that was sanctioned by the European Union on Friday for its dealings with Russia. The firm is a companion of the Ministry of Electronics and Information Technology (MeitY) for a really latest “Atmanirbhar Bharat” (Make in India) collaboration, officers confirmed to The Hindu. 

The firm, Bengaluru-based high-tech agency Si2 Microsystems, has a fancy historical past because it has been banned by the U.S. from “dual-use” know-how transfers as properly, and its administrators had been positioned on Lookout Circular (LOC) notices by Indian authorities over debt defaults. A couple of years in the past, a director had approached courts for a waiver of the LOC in order to journey to Russia, his legal professionals confirmed, indicating that the corporate had pressing and shut ties with Russian counterparts.  However, the corporate and its administrators remained unavailable for touch upon the newest sanctions, that had been introduced to mark two years of the Russian struggle in Ukraine.

The Ministry of External Affairs declined to touch upon the announcement, however officers instructed The Hindu all three Ministries involved – the MEA, Ministry of Commerce and Industry (CIM) and MeitY – had been conscious of the announcement, in addition to the hyperlinks to the federal government.

“This is a known company that is an industry partner for a project to research fabrication of chips, that was announced in collaboration with Indian Institute of Technology-Madras,” an official stated, confirming the federal government tie-up that was introduced by the Press Information Bureau (PIB) final yr. 

The official stated that the federal government is analyzing the EU’s sanctions announcement and whether or not it ought to contact the EU to protest the choice. 

“India has done nothing illegal. It is their [the EU’s] interpretation that ties with Russia are a problem. As far as the government is concerned the sanctioned company is an industry partner and MeitY’s research partner,” the official stated, reiterating India’s conventional place of shut ties with Russia, and that it doesn’t recognise non-UN, unilateral sanctions.

When requested if any “due diligence” had been accomplished with regard to the corporate, given its authorized issues, the official stated that the selection of companion had been made by IIT-Madras, the place MeitY had arrange the Centre for Programmable Photonic Integrated Circuit and Systems (CPPICS) in 2020. 

“CPPICS is forging critical partnerships, including a collaboration with M/s Si2 Microsystems in Bangalore, to deliver state-of-the-art System-in-Package solutions for silicon photonic processor cores,” the PIB assertion dated October 20, 2023 learn, outlining initiatives inaugurated by MeitY Secretary S. Krishnan and IIT-Madras Director V. Kamakoti for the analysis facility specializing in so-called “photonic chips”, an rising know-how that guarantees elevated knowledge switch and computing speeds.

When requested for a touch upon how the EU and U.S. sanctions would possibly have an effect on the plans for the venture, the IIT-Madras Director’s workplace stated they had been reviewing the state of affairs and would revert shortly.

Incorporated in 1993, Si2 Microsystems, which had an authorised share capital of ₹60 crore, says on its official web site that it’s a “preferred solutions provider for the Indian armed forces and public sector companies”, in addition to international defence corporations, itemizing corporations like Indian Space Research Organisation (ISRO), GE and IBM amongst its purchasers.

In November 2023, Si2 Microsystems had been added to the U.S.’s restricted “Entities List” for supplying “U.S.-origin integrated circuits” to the Russian army regardless of the transfers being banned after the Russian invasion of Ukraine, with out the required licence. On Friday, the EU’s newest listing named Si2 Microsystems India as “Entity number 620”, that was a part of the additions to its sanctions that started after the Russian annexation of Crimea in 2014. Apart from the Indian firm, a number of entities in China, in addition to Turkey, Serbia, Kazakhstan and Thailand, had been additionally on the EU listing of sanctions.

All corporations on the banned listing are prohibited from any transfers or engagement throughout the EU jurisdiction as they’ve been discovered to “ form part of Russia’s military and industrial complex or which have commercial or other links with or which otherwise support Russia’s defence and security sector.” In retaliation to the EU’s assertion on February 23 of the thirteenth bundle of sanctions in opposition to Russia which included Si2 Microsystems, Russia’s Foreign Ministry stated on Monday it had expanded its listing of European entities and individuals denied entry to Russia, calling the unilateral sanctions “illegitimate” and undermining the UN’s place.

“In view of the key enabling role of electronic components for use by Russia’s military and industrial complex in supporting the war of aggression against Ukraine, Decision (CFSP) 2024/746 includes on that list certain entities in third countries other than Russia which support indirectly Russia’s military and industrial complex in its war of aggression against Ukraine by trading in such components,” the EU’s notification, issued over the weekend, learn.

The Hindu reached out to Si2 Microsystems instantly however didn’t obtain a response to the EU sanctions. Calls to their legal professionals, who represented them in a chapter matter the place the corporate’s headquarter constructing was hooked up by the Debt Recovery Tribunal in Mumbai in September 2022, went unanswered. Lawyers concerned within the case to droop the LOCs in opposition to Director Sanjay Soni in 2021 and 2022, on the plea that he wanted to journey to Russia and different nations to signal worldwide contracts, additionally declined to remark .

(With inputs from Aroon Deep Kumar/Delhi, Mini Tejaswi/Bengaluru and R. Sujatha/ Chennai)