Centre Receives 70 Applications For Electronics Component Manufacturing Scheme

The government has reportedly received 70 applications for its INR 22,919 Cr electronics component manufacturing scheme.

Union minister Ashwini Vaishnaw confirmed the development, highlighting that majority of the applicants are small and medium enterprises.

“Electronics component manufacturing scheme has received tremendous response. Within 15 days of opening the application, around 70 applications have come,” Vaishnaw told PTI.

In March, the union cabinet for non-semiconductor electronics components.

The scheme aims to attract an investment of INR 59,350 Cr, resulting in production of INR 4,56,500 Cr, and generating additional direct employment of 91,600 persons and many indirect jobs as well.

The tenure of the scheme is six years with one year of gestation period. Payout of a part of the incentive is also linked with employment targets achievement.

During the approval of the scheme, the government had said, “The scheme provides differentiated incentives to Indian manufacturers tailored to overcome specific disabilities for various categories of components and sub-assemblies so that they can acquire technological capabilities and achieve economies of scale.”

The scheme will likely benefit sectors, including telecom, consumer electronics, automobile and medical devices.

Last month, Vaishnaw also said that and its online portal will be launched soon.

States Joining The Electronics Manufacturing Race

While the investors for the scheme have not been disclosed, reports suggest that global manufacturers, including under the PLI scheme.

These global players are partnering with different states to plan out their manufacturing hubs

For instance, Apple’s largest contract manufacturer Foxconn has already set up a display module assembly unit in Tamil Nadu and trial runs have already been started.

Besides, Tamil Nadu chief minister MK Stalin unveiled the a few weeks ago. This scheme aims to attract INR 30,000 Cr worth of investments and generate 60,000 jobs in the state.

Several reports have claimed thatto become electronics manufacturing hubs. While Gujarat has submitted a draft policy to incentivise and boost electronics components manufacturing, Uttar Pradesh is working on a draft policy which may be finalised in a few weeks.

During her Budget speech, finance minister Nirmala Sitharaman said that the government is willing to give a much-needed spur to the domestic electronics equipment industry.

As per the India produced electronics goods worth INR 9.52 Lakh Cr in FY24, against INR 1.90 Lakh Cr in FY15.

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