Govt Gets 70 Applications for ₹22,805 Cr Electronics Scheme

• ECMS received 70 applications within 15 days, mostly from SMEs.
• It allocates ₹22,805 crore to boost electronics component and machinery manufacturing.
• The scheme aims to reduce import dependency and bridge a $248 billion supply gap by 2030.

The government has received 70 applications under the Rs 22,805-crore Electronics Component Manufacturing Scheme (ECMS) -- most of them from small and medium enterprises (SMEs), said Union Minister Ashwini Vaishnaw.

Although the minister did not name the applicants, sources had previously suggested that companies that have registered their interest in the scheme include Tata Electronics, Dixon Technologies and Foxconn. 

“Electronics Component Manufacturing Scheme has received tremendous response. Within 15 days of opening the application, around 70 applications have come”, he added.

The ECMS was launched on May 1, 2022, as measures reduce India's dependence on imports that will address the expanding demand-supply gap in electronics component manufacturing. 

Also Read: Tamil Nadu's Electronics Push: Rs 30,000 Cr Investment, 60,000 Jobs

According to the Electronic Industries Association of India (Elcina), this gap could expand to be worth USD 248 billion (around ₹21 lakh crore) by 2030, in line with the Indian government's target of USD 500 billion in electronics production as a whole including India's export commitment. 

The scheme provides ₹21,093 crore (approximately USD 2.5 billion) for co-investing in production of electronics sub-assemblies, including camera modules, multi-layered printed circuit boards (PCBs), flexible PCBs, and passive components. 

An additional ₹1,712 crore is allocated for the co-investment in the parts used to manufacture these sub-assemblies and capital goods used in electronics manufacturing. 

The products that are included in the scheme are segregated into four categories: high-value sub-assemblies, bare components, flexible components and supporting components and machinery. The application for the first three categories will be open for three months from 1 May, while for the supporting components and capital goods will remain open for 2 years.