Electronics Components Manufacturing Scheme

Electronics Component Manufacturing Scheme Latest News

Recently, the government approved the 29 applications under the fourth tranche of the Electronics Component Manufacturing Scheme.

About Electronics Component Manufacturing Scheme

• It is the first dedicated production-linked incentive (PLI) scheme to promote the manufacturing of select passive electronic components, including resistors, capacitors, speakers, microphones, special ceramics, relays, switches, and connectors. 
• Objective: To develop a robust component manufacturing ecosystem by attracting investments (global / domestic) across the value chain by integrating its domestic electronic industry with the Global Value Chains (GVCs).
• The scheme will offer three incentive structures
  • Turnover-linked incentive (based on revenue)
  • Capex-linked incentive (for investments in plants & machinery)
  • Hybrid incentive model (a combination of both)
• Incentives for incremental investments and turnover range from 1–10% depending on the year and the component.
• Employment generation will be a mandatory requirement for all applicants, including both component manufacturers and capital equipment producers.
• Tenure: This scheme has a tenure of six years, with a one-year gestation period.
• The scheme focuses particularly on passive electronic components. In contrast, active components fall under the purview of the India Semiconductor Mission (ISM).
• Significance: This scheme is set to benefit a number of industries, such as automobiles, consumer electronics, and electronics.

Source: PIB

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