Govt allocates INR 48,042 cr in electronics schemes
The Union Cabinet has given approval to three key schemes with a total outlay of INR. 48,042.25 crore to incentivize electronics and components manufacturing exports and production in the country. These scemes are expected to help the country compete with China, Vietnam in electronics manufacturing, in addition to lure investment to the tune of INR 20 lakh crore and create employment opportunities for 25 lakh people over the next 5-6 years.
Union minister for electronics and IT, Shri Ravi Shankar Prasad said during the briefing, “These schemes will play a big role in realising the dream of $1 trillion digital economy by 2025.” He added that these schemes will also help in reducing the country’s dependence on electronics imports.
The Scheme for Promotion of Manufacturing of Electronics Components and Semiconductors (SPECS) will provide financial incentive of 25% on capital expenditure for the select electronic goods that comprise downstream value chain of electronic products, i.e., electronic components, semiconductor/ display fabrication units, ATMP units, etc.
The Electronics Manufacturing Clusters (EMC) 2.0 will grant financial assistance upto 50% of the project cost subject to ceiling of Rs.70 crore per 100 acres of land and For Common Facility Centre (CFC), financial assistance of 75% of the project cost subject to a ceiling of Rs.75 crore will be provided.