Projects Worth INR 5,500 Cr Approved Under Electronics Manufacturing Scheme

The Centre yesterday approved the first batch of seven projects under the Electronic Components Manufacturing Scheme (ECMS).

In a statement, the IT ministry said that the selected companies will invest INR 5,500 Cr under the scheme to indigenously produce key components, such as printed circuit boards (PCBs), camera modules, laminates and polypropylene films.

While Kaynes Circuits India received approval for four units, nod for one unit each was accorded in favour of SRF, Syrma Strategic Electronics and Ascent Circuits. The government said that the approved units will generate production worth INR 36,559 Cr and create over 5,100 direct jobs. 

These facilities span multiple states including Tamil Nadu (five), Andhra Pradesh (one) and Madhya Pradesh (one).

“20% of our domestic demand of PCBs and 15% of camera module sub-assembly will be met through production from these plants,” said IT minister Ashwini Vaishnaw. He also said that the demand for copper clad laminate will now be completely met domestically, adding that 60% of the production at these new facilities will also be exported. 

It is pertinent to note that ECMS will pave the way for the establishment of a copper clad laminate (CCL) manufacturing facility in the country. For context, CCL acts as a base component for manufacturing multi-layer PCBs, which power most electronics components. 

In total, 249 applications have so far been received under the electronics manufacturing scheme. The Centre said that these applicants have promised to commit INR 1.15 Lakh Cr in investment, produce goods worth INR 10.34 Lakh Cr, and create 1.42 Lakh jobs.

The new approvals are expected to trim India’s dependence on import for key electronics products and lower product prices in the domestic market. Additionally, the projects are expected to create jobs and build trusted supply chains for both emerging and established sectors. 

Approved by the Union cabinet in March this year and notified in April, the ECMS aims to build a $500 Bn domestic electronics component manufacturing ecosystem in the country by FY32. 

With a tenure of six years and a gestation period of one year, the initiative will offer varied fiscal incentives such as turnover-linked incentives, capex-linked incentives, and a combination of both, called hybrid incentives, to applicants. Notably, a portion of the incentives is also linked to employment.

At the heart of all this is India’s growing electronic manufacturing ecosystem, which produced domestic goods worth INR 9.52 Lakh Cr in FY24 and INR 11.3 Lakh Cr in FY25.