The Centre will be reportedly extending the application deadline for the INR 22,919 Cr electronics component manufacturing scheme (ECMS) beyond July 31.
The Ministry of Electronics and Information Technology (MeitY) will be extending the deadline of the scheme for a ‘few days’ on the back of healthy responses from the industry, ET reported, citing a ministry official.
The three-month application window has already seen multiple applications, the official added.
The decision to extend the deadline was finalised after companies raised the request.
ECMS was introduced in March earlier this year, to focus on non semiconductor electronics components.
The scheme’s tenure is set for a period of six years until FY2031-32, which 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 applications scheme opened on May 1 through its allocated online portal, where reports from earlier this month claimed the scheme received more than 100 applications for manufacturing various electronics components, including display modules, camera units and battery packs.
Further, it is noted that these proposals are worth INR 7,500 Cr to INR 8,000 Cr under the ECMS.
The scheme offers varied fiscal incentives such as turnover-linked incentive, capex-linked incentive, and a combination of both called hybrid incentive. Notably, a portion of the incentives is linked with employment.
Earlier this month, the Centre was said to likely approve projects under the production-linked incentive (PLI) scheme for electronics components manufacturing by August-September.
Boosted by the central government’s initiatives on ECMS, Tamil Nadu chief minister MK Stalin launched the “Tamil Nadu Electronics Components Manufacturing Scheme” on April 30, to attract INR 30,000 Cr worth of investments and generate 60,000 jobs in the state.
Pertinent to note that, Tamil Nadu is already a leading player in India’s electronics manufacturing and exports.
Following which, states such as Gujarat and Uttar Pradesh were reportedly aiming to become key hubs for electronics components manufacturing, by submitting their draft policy for incentivising electronic component manufacturing in their states.
According to public data, domestic production of electronic goods increased to INR 9.52 Lakh Cr in FY24 from INR 1.90 Lakh Cr in FY15, while exports of electronics goods from India surged to INR 2.41 Lakh Cr in FY24 from INR 0.38 Lakh Cr in FY15.
In FY25, electronics became the third largest commodity exported from India.
The post Govt Likely To Extend Electronics Manufacturing Scheme Beyond July: Report appeared first on Inc42 Media.
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