‘Electronics component scheme gets proposals of Rs 1.15 lakh cr’
New Delhi: The Electronics Component Manufacturing Scheme (ECMS) has received investment proposals worth Rs 1.15 lakh crore, Union Minister for Electronics and IT Ashwini Vaishnaw said on Thursday.
He said the proposals have exceeded investment, employment and production targets multifold when compared to the goals set during formulation of the scheme.
“Application window for Electronics Component Manufacturing Scheme closed on September 30. We have received investment proposals of Rs 1,15,351 crore,” Vaishnaw said.
The minister said that around 60 per cent of the total applications have come from small and medium enterprises.
“I would say about 60 per cent of the applications are from MSME players. That is what is very heartening because when the smaller players get confidence about the programme, about the policy, that is a big game changer,” Vaishnaw said.
He said that the government has envisaged getting investment of around Rs 59,000 crore under the scheme and that the application window for capital equipment segment is still open.
China at present dominates the capital equipment segment and recently it had informally stalled supplies of the goods for electronics production in the country especially that of iPhones.
Vaishnaw said that the government will also focus on production of materials that are used in manufacturing electronic components.
A total of 249 companies have submitted applications which will be screened by a committee before approval.
“All the applications will now be scrutinised through a committee and we expect to approve them very soon,” Vaishnaw said.
The minister said that the incentive will be given on a first come first serve basis to the companies who meet their investment, production etc goals as per the guidelines at the earliest.
“Against a production target of Rs 4,56,500 crore, we have received production estimates more than Rs 10,34,000 crore,” Vaishnaw said.
Electronics and IT Secretary S Krishnan said the proposals promise to generate employment for 1.41 lakh persons compared to the target of 91,600 persons envisaged under the scheme.
The Electronics Component Manufacturing Scheme has received the highest investment proposal of Rs 35,813 crore for enclosures or the body of mobile phone, IT hardware products & other related devices.
Tata Electronics is one of the leading players in the enclosure segment which manufactures products for iPhones.
Leading segments where players have submitted proposals for big investments include flexible printed circuit boards (Rs 16,542 crore), electro-mechanical components (Rs 14,362 crore), multi-layer PCB (Rs 14,150 crore), supply chain of sub-assemblies and bare components (Rs 9,226 crore), display module sub-assembly (Rs 8,642 crore), camera module sub-assembly (Rs 6,205 crore) and lithium ion cells (Rs 4,516 crore).
Investment proposals of Rs 2,103 crore have been received for capital goods used in electronics manufacturing, Rs 1,645 crore for optical transceivers, Rs 1,608 crore in non-SMD passive components and Rs 535 crore for SMD passive components.
