Electronics Components Manufacturing Scheme

News: The Ministry of Electronics and Information Technology (MeitY) has notified the Electronics Components Manufacturing Scheme.

About Electronics Components Manufacturing Scheme

• This is the first scheme that focuses on promoting the manufacturing of passive electronic components including resistors, capacitors, connectors, inductors, speakers, relays, switches, oscillators, sensors, films and lenses.
• Nodal Ministry: Ministry of Electronics and Information Technology (MeitY)
• Aim: It aims to deepen domestic value addition by localizing core electronic components by developing capacity and capabilities, and integrating Indian companies with Global Value Chains (GVCs).
• Tenure: The tenure of the scheme is six years with a one-year gestation period.
• Features:
  • This scheme follows the Indian Semiconductor Mission (ISM 1.0) and white goods PLI.
  • Both greenfield and brownfield applications will be accepted with applicants needing to apply separately for each product segment.
• Incentives criteria:
  • Incentives will be structured in three ways—turnover linked (based on revenue), capex intensive (for investments in plants & machinery), or hybrid (a combination of both).
  • Incentives for incremental investments and turnover range from 1–10% depending on the year and the component.
  • Employment-linked incentives: The government has tied part of the payouts to job creation.
• Beneficiaries:
  • Mobile Phone & Consumer Electronics Players
  • Component & PCB Makers
  • Semiconductor & Passive Component Players
  • Automotive & EV Component Suppliers
  • Display & Camera Module Makers