Govt announces three new scheme to boost electronic production in India
Governments new schemes are aimed at boosting electronic production and creating more jobs in India.
The government on Tuesday announced three new schemes to boost production in the electronics sector in India as a part of its Aatmanirbhar Bharat plan. These schemes not only aim to invite global tech companies to set up roots in India but they also aim to help the local tech companies grow while incentivising them for the milestones that they achieve.
“The global and local will work together to make India a manufacturing hub..a talented country supporting the global chaim,” Union Minister for Electronics and Information Technology ministry RS Prasad said while announcing the schemes.
The first scheme announced by the government today is called the Production Linked Incentive. This scheme gives an incentive between 4% to 6%, which amounts to ₹40,995 crores, to the companies for increasing their production capacity in the country. This scheme is valid for a period of five years and the incentives will be applicable starting August 1, 2020.
As a part of this scheme, the government is targeting mobile phones and electronic components manufacturers via this scheme. Companies can apply for this scheme by submitting their application via a new portal, pli.ifciltd.com, until July 31, 2020.
The second scheme is the Scheme for Promotion of Electronic Components and Semiconductors (SPECS). This scheme gives an incentive of 25%, which amounts to ₹3,285 crores, on plant, machinery, equipment, research and development, utilities and transfer of technology. The government is targeting active and passive components, semiconductors, specialised sub assemblies and Assembly Testing Making and Production (ATMP) via this scheme. Additionally, the government has set a minimum threshold between ₹5 crore to ₹1,000 crore for the companies under this scheme. This scheme too is valid for five years and companies can apply for it via the government's specs.ifciltd.com portal.
Last on the list in the Modified Electronics Manufacturing Cluster Scheme (EMC 2.0). This scheme gives an incentive of 50% of the project cost, which amounts to ₹3,762 crores, to the companies. With this scheme, the government aims to lure big companies along with their ancillaries to set up base in India. Apart from the incentive, the government is also giving a minimum land area of 200 acres (100 acres for North East and hill states) for large manufacturing clusters. The government has set up emc20.stpi.in portal to help the companies with the details.
With these schemes the government aims to achieve five objectives, which include expansion of manufacturing base on the lines of Korea, China and Taiwan, developing a trusted value chain, 20%-30% higher value addition, increase foreign exchange savings and generate up to 10 lakh jobs in India.