Central GovernmentVerified

Electronics Component Manufacturing Scheme

Ministry: Ministry of Electronics and Information Technology

The scheme aims to provide financial incentives for manufacturing electronic components in Bharat. Through this scheme, turnover and capital expenditure-linked incentives are provided to companies and Limited Liability Partnerships.

Last verifiedToday

Official Source ↗

About This Scheme

The scheme "Electronics Component Manufacturing Scheme" has been launched by the Ministry of Electronics and Information Technology, Government of India. It aims to provide financial incentives for the manufacturing of identified electronic components and capital goods in Bharat. Through this scheme, turnover-linked and capital expenditure incentives are provided to companies and Limited Liability Partnerships investing in greenfield or brownfield projects within the target segments. The scheme is implemented by a Project Management Agency (PMA) appointed by the Ministry of Electronics and Information Technology (MeitY). The scheme seeks to ensure the effective operation and smooth implementation of electronic system design and manufacturing (ESDM) through detailed industry consultations. It focuses on sub-assemblies, bare components, selected bare components, and the supply chain ecosystem, including capital equipment.

Benefits

Nature of Incentives by Target Segment: The scheme offers three types of incentives depending on the target segment:

Sl. No.	Target Segment	Nature of Incentive
A	Sub-Assemblies
1	Display module sub-assembly	Turnover Linked Incentive
2	Camera module sub-assembly	Turnover Linked Incentive
B	Bare Components
3	Non-Surface mount devices (non-SMD) passive components for electronic applications	Turnover Linked Incentive
4	Electro-mechanicals for electronic applications	Turnover Linked Incentive
5	Multi-layer Printed Circuit Board (PCB)	Turnover Linked Incentive
6	Li-ion Cells for digital applications (excluding storage and mobility)	Turnover Linked Incentive
7	Enclosures for Mobile, IT Hardware products and related devices	Turnover Linked Incentive
C	Selected Bare Components
8	High-density interconnect (HDI)/ Modified semiadditive process (MSAP)/ Flexible PCB	Hybrid Incentive
9	SMD passive components

Hybrid Incentive

DSupply Chain Ecosystem and Capital Equipment10Parts/components used in the manufacturing of subassembly (A) and bare components (B) & (C)Capex incentive11Capital goods used in electronics manufacturing, including their sub-assemblies and componentsCapex incentive

Turnover Linked Incentive: Applicable to Sub-assemblies (Segment A) and Bare Components (Segment B). The incentive is calculated on net incremental sales over the base year, multiplied by the applicable incentive rate.
Hybrid Incentive: Applicable to Selected Bare Components (Segment C), comprising both turnover-linked incentive and Capex incentive.
Capex Incentive: Applicable to Supply Chain Ecosystem and Capital Equipment (Segment D). The incentive is calculated on eligible incremental capital expenditure, multiplied by the applicable incentive rate.
Employment Incentive: A portion of the incentive (1% for turnover-linked or 5% for Capex) is specifically disbursed upon meeting cumulative incremental employment threshold criteria.
Additional Incentive: An additional 2% incentive on incremental sales is provided for Li-ion Cells if cathode active material (CAM) is sourced or manufactured domestically.

An additional 1% incentive on incremental sales is provided for Multi-layer PCB if the laminate is sourced or manufactured domestically.

Incentive Rates:

Sl.No.	Target Segment	ESDM Revenue (₹)	Manufacturing Revenue (₹)
1	Display module sub-assembly	250 crore	750 crore
2	Camera module sub-assembly	250 crore	750 crore
3	Non-SMD passive components	50 crore	150 crore
4	Electro-mechanicals	50 crore	150 crore
5	Multi-layer PCB	50 crore	150 crore
6

Li-ion Cells for digital applications (excluding storage and mobility)

250 crore750 crore7Enclosures for Mobile, IT Hardware products and related devices250 crore750 crore8HDI/MSAP/Flexible PCB500 crore1500 crore9SMD passive components250 crore750 crore

(Incentive rates listed year-wise across 6 years of the incentive period)

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.

Required Documents

✦
In-house capability document, or
✦
Binding term sheet with technology partner, or
✦
Technology transfer agreement

✦ Required ◦ Optional

How to Apply

OOnline

Step 1: Visit the Official Portal www.ecms.meity.gov.in and click on "Register".

Step 2: Select your Type of Entity (Company / LLP), enter Registered Applicant Name, Company PAN, CIN / LLPIN, and Date of Incorporation.

Step 2: Enter Name and Designation of the authorised signatory, set a Password, enter Email ID → click Send OTP → enter OTP, enter Mobile Number → click Send OTP → enter OTP.

Step 3: Upload Certificate of Incorporation, Letter of Authorisation (on company letterhead, signed by Director), and PAN Card of Company.

Step 4: Click the "Register" button → you will receive a confirmation on your email and mobile.

Step 5: Log in using your registered email and password → start filling out your actual application form.

Step 7: Select your Target Segment (A / B / C / D / E) based on your product category

Step 8: Choose Incentive Type (Turnover-linked / Capex-linked / Hybrid) → fill in investment, sales, employment, and localisation details

Step 9: Pay the non-refundable Application Fee online → submit the form → save your Unique Application ID

Step 10: PMA acknowledges within 15 working days → respond to any queries within 15 days → PMA forwards recommendations to the Governing Council (GC)

Step 11: GC sends for approval — Secretary MeitY (up to ₹100 Cr) or Minister of Electronics & IT (above ₹100 Cr) → begin manufacturing after approval

Step 12: Submit annual incentive claims through the portal every financial year → PMA verifies and disburses incentives on a first-come, first-served basis

Quick Info

Level: Central Government