The government has approved Rs. 3,285 crores for promotion of manufacturing of electronic components and semiconductors.
This includes the incentive outlay of approximately Rs.3,252 crores and the administrative expense to the tune of Rs. 32 crores.
The scheme has been approved to offer financial incentive of 25% of capital expenditure for the manufacturing of goods that constitute the supply chain of an electronic product under the Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS). It will help offset the disability for domestic manufacturing of electronic components and semiconductors in order to strengthen the electronic manufacturing ecosystem in the country.
The expected outcomes include: Development of electronic components manufacturing ecosystem in the country and deepening of electronics value chain; New investments in the electronics sector to the tune of at least Rs. 20,000 crore; Direct employment of approximately 150,000; and indirect employment of approximately Rs. 450,000.
The new scheme is proposed to provide an incentive of 25% on capital expenditure on plant, machinery, equipment, associated utilities and technology, including for R&D to the industrial units making investment for manufacturing of electronic components, semiconductors, ATMP, specialized sub-assemblies and capital goods for these items, in the specified categories.
This will cater to all segments of electronics manufacturing such as mobile electronics, consumer electronics, industrial electronics, automotive electronics, medical electronics, strategic electronics, power electronics, telecom equipment and computer hardware etc.