Electronics Components Manufacturing Scheme

Electronics Component Manufacturing Scheme Latest News

Recently, the central Minister of Electronics & IT highlighted that the Electronics Components Manufacturing Scheme has received an overwhelming response from both domestic and international industry leaders.

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. Thus, the scheme not only boosts manufacturing but also creates skilled jobs.
• 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).
• This scheme is set to benefit a number of industries, such as automobiles, consumer electronics, and electronics.

 Source: PIB

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