Govt unveils guidelines for three schemes with the outlay of Rs 50,000 cr to boost electronic sector
New Delhi/IBNS: The government has announced Rs 50,000 crore package to revive the electronic industry reeling under the coronavirus-induced lockdown with an aim to boost the domestic manufacturing of five global and five Indian mobile phone makers, Union Minister Ravi Shankar Prasad said on Tuesday.
The package includes three schemes-- the Production-Linked Incentive Scheme (PLI), Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) and Modern Electronics Manufacturing Clusters (EMC 2.0) Scheme.
Announced 3 Schemes of â‚¹50,000 Crore for development of electronics manufacturing sector which will be implemented from today— Ravi Shankar Prasad (@rsprasad) June 2, 2020
1.Production Linked Incentive Scheme
2.Component Manufacturing Scheme
3.Modified Electronics Manufacturing Clusters Scheme#ThinkElectronicsThinkIndia pic.twitter.com/WeKSLmMeaS
These schemes were notified by the Ministry of Electronics and IT (Miety) on April 1.
Niti Aayog CEO Amitabh Kant was quoted as saying on Tuesday by Economic Times, "Many years later, when you will look back, you will find that today's day will be a pathbreaking day because under the Aatma Nirbhar Bharat concept of the Prime Minister, our attempt is to build some champion sectors who will drive India's growth and create jobs.
"I was fortunate work with Ministry of Electronics and IT under the leadership of the Minister (Prasad) and want to compliment his leadership. I was fortunate work with Ministry of Electronics and IT under the leadership of the Minister (Prasad) and want to compliment his leadership. He was very clear in his perspective and everyone in his team worked with dedication for this."
Productivity linked incentives for manufacturing of mobile phone and electronic components. pic.twitter.com/LQrylhROzV— Prasanna Viswanathan (@prasannavishy) June 2, 2020
The PLI scheme offers an incentive of 4 per cent to 6 per cent on incremental sales (over base year ) of the goods manufactured in India covered under the target segments, to the eligible companies, for a period of five years following the base year, said an ET report.
Under SPECS, a financial incentive of 25 per cent on capital expenditure for a list of electronic goods like semiconductor/ display fabrication units, electronic components, Assembly, Test, Marking and Package (ATMP) units specialised sub-assemblies and capital goods used in the manufacturing of these goods.
In order to attract major global electronic manufacturers, including their supply chains, the EMC 2.0 will support the set up of world class infrastructure along with the common facilities and amenities, including Ready Built Factory (RBF)/ Plug and Play facilities.
The portals to receive applications for the three schemes have been made operational by the IFCI, a public sector NBFC, the report said.