Union Ministry of Ministry of Electronics & IT has launched three schemes PLI, SPECS and EMC 2.0. With a view to building a robust manufacturing ecosystem which will be an asset to the global economy government is looking forward to developing a strong ecosystem across the value chain and integrating it with global value chains. This is the essence of these three Schemes namely, the (i) Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing, (ii) Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and (iii) Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme.
PLI Scheme
The PLI Scheme shall extend an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India and covered under the target segments, to eligible companies, for a period of five years subsequent to the base year.
SPECS
The SPECS shall provide financial incentive of 25% on capital expenditure for the identified list of electronic goods, i.e., electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods.
EMC 2.0
The EMC 2.0 shall provide support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains.
Facts
- The triology of Schemes entail an outlay of about Rs. 50,000 crore (approximately USD 7 billion).
- The Schemes will help offset the disability for domestic electronics manufacturing and hence, strengthen the electronics manufacturing ecosystem in the country.
- The three Schemes together will enable large scale electronics manufacturing, domestic supply chain of components and state-of-the-art infrastructure and common facilities for large anchor units and their supply chain partners.
- These Schemes shall contribute significantly to achieving a USD 1 Trillion digital economy and a USD 5 Trillion GDP by 2025.
- The three new Schemes are expected to attract substantial investments, increase production of mobile phones and their parts/ components to around Rs.10,00,000 crore by 2025 and generate around 5 lakh direct and 15 lakh indirect jobs.
