Electronics Component Manufacturing Scheme

Electronics Component Manufacturing Scheme: Recently, the Union Cabinet, chaired by PM, has approved the Electronics Component Manufacturing Scheme.

• About Electronics Component Manufacturing Scheme: Launched under the Ministry of Electronics and Information Technology (MeitY), GOI.
  • Objective: To develop a robust component ecosystem by attracting large investments (global/domestic) and increasing Domestic Value Addition (DVA).
  • Salient Features: Differentiated incentives to Indian manufacturers to overcome disabilities and achieve economies of scale.
  • Target Segments & Incentives:

  o Sub-assemblies: Turnover-linked incentives for Display module sub-assembly & Camera module sub-assembly.

  o Bare Components: Turnover-linked incentives for Non-SMD passive components, Electro-mechanicals, Multi-layer PCBs, Li-ion cells (excluding storage & mobility), and Enclosures for Mobile, IT hardware, and related devices.

  o Selected Bare Components: Hybrid incentive for HDI/MSAP/Flexible PCB and SMD passive components.

  o Supply Chain & Capital Equipment: Capex incentive for parts/components used in sub-assembly & bare components and capital goods used in electronics manufacturing.

  • Tenure of the scheme: 6 years, with a 1-year gestation period.

  o Incentive pay-out linked to employment target achievements.