Investment Of INR 8,803 Cr Made Under Electronics Manufacturing Scheme As Of June: Govt

The government has informed the Parliament that an incremental investment of INR 8,803.14 Cr was made under the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors as of June 30.

In a written reply to Rajya Sabha, Minister of State (MoS) for Electronics and Information Technology Jitin Prasada said that the scheme has led to production of INR 18,083.55 Cr (over $2.1 Bn) until the end of June.

The scheme was initially notified on April 1, 2020, and has continued to accept applications until March 31.It provides a financial incentive of 25% on capex (capital expenditure) for electronic components, mechanics, solar photovoltaic (SPV) polysilicon and such goods on their production.

Meanwhile, production linked incentive (PLI) scheme for large scale electronics, which offers an incentive of 3% to 6% on incremental sales of electronic goods produced in India for a period of five years, made an investment of INR 8,390 Cr under the scheme, as of June 30, and the initiative has aided the production of INR 5,14,960 Cr, until then.

This PLI scheme came in order to boost domestic manufacturing and attract investment in mobile phones value chain including electronic components and semiconductor packaging and it was notified on April 1, 2020. 

This comes on the heels of the multiple initiatives and schemes introduced by the government to boost the manufacturing sector.

Also, finance minister Nirmala Sitharaman has announced a number of measures during her recent Budget speech to boost the domestic electronics industry.

“To increase value addition in the domestic electronics industry, I propose to remove the Basic Customs Duty (BCD), subject to conditions, on oxygen-free copper for the manufacture of resistors. I also propose to exempt certain parts used in the manufacture of connectors,” Sitharaman said.

In April, the Ministry of Heavy Industries (MHI) received seven bids for the global tender issued by it for rebidding for production linked incentives (PLI) for 10 GWh advanced chemistry cell (ACC) manufacturing. The Union Cabinet approved the PLI scheme for manufacturing advanced chemistry cell (ACC) batteries in May 2021.

The scheme, with an outlay of INR 18,100 Cr aimed to achieve manufacturing capacity of 50GWh of ACC and 5 GWh of “niche” ACC.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.