Illustrative description of India Electronics Manufacturing Schemes

Illustrative description of India Electronics Manufacturing Schemes

The central government has introduced three new Electronics Manufacturing Schemes. This is part of the Atmanirbhar bharat Abhiyan. The main objective of the scheme launch is to offer better incentives to the global tech companies so that they are convinced to set up their base in India. With this, it shall help to strength the domestic electronics manufacturing market better. This in turn shall help to boost the mobile phone market better. The following part shall take you through other features and ways to register for the online application of the schemes.

Launch details of the scheme

Features of PLI or production linked incentive scheme for large scale units

• This scheme will offer a production linked incentive facility to boost the domestic manufacturing sector.
• It will attract large investment sources for the manufacturing of electric components and mobile phone manufacture.
• The manufacturing units will be subjected to testing, marketing and suitable packaging units before they are out in the market
• As per the scheme, there will be an increase in the incentive rate from 4 % to 6% in India’s sale of manufactured items.
• The scheme will be implemented under the supervision of a Project management agency that shall function as a Nodal agency.
• Amount sanctioned for the scheme – Total amount of rupees 40, 995 crores have been given for quality production.

Therefore, the scheme benefits will be offered for five years, and thus, the incentives will start on 1^st August 2020.

Steps for online registration of the scheme

The interested applicants can apply for the same through an online medium within four months. The last date of online application is 31^st July 2020. The interested companies have to go through the online application through the portal of the scheme.

• First, one has to visit the https://pli.ifciltd.com/ link
• As the homepage shows up, one has to click on the register option.
• Soon after this, the online form shall show up on the screen.
• One has to enter correct details in the form including name, address, PAN number, GSTN and other details and then click on the register option. This will complete the registration procedure.
• For suitable notification and information about the scheme, one can click on the https://meity.gov.in/esdm/pli

Details of Promotion of Manufacturing of Electronic Components and Semiconductors scheme

• The scheme shall offer financial assistance of 25% of rupees 3285 crores on the purchase of some listed electronic items.
• Items included are electronic components, ATMP units, capital goods, semiconductor units, and manufacturing of goods above.
• The expenditure will be calculated on the total expenditure in departments that involve working with items like equipment, machinery, utilities, technology, plant, along with research and development.
• The application procedure is available for a span of 3 years
• One can use the incentive for investment purposes within 5 years from the date of application for the same
• In this respect, the central government has offered rupees 5 crores to rupees 1000 crores for the business units that fall under the scheme.

Steps for Online Application Form for SPECS Scheme

For the scheme application, any entity registered in India is eligible for the same. Through the scheme, it will be easy for the business to start new ventures and think of business expansion. They can also think of the modification of the existing business unit. For the registration, the following steps need to be followed.

1. First, one has to go to the official portal of https://specs.ifciltd.com/ link
2. On the homepage, they have to click on the register option to start the procedure.
3. As the application form shows up, one has to enter correct details of company name, PAN number, category of legal entity, office address and the related information.
4. Now, they have to click on the register option that will complete the online registration procedure
5. For detailed information and know about the guidelines of the scheme, they have to click on the https://meity.gov.in/esdm/SPECS

Here also, the project management agency will function as the nodal agency and help in the effective implementation of the scheme. Even for managerial, secretarial, and other services, the PMA will be responsible. This has been assigned by MeitY to inspect the smooth implementation of the above-said scheme.

Details about Modified Electronics Manufacturing Clusters scheme

• For a project worth of rupees 3762 crores, the scheme will offer 50% as an incentive.
• With this incentive facility, the Indian government is alluring the big companies to set up their foundation in India. This, in turn, shall boost up the production of electronics in India.
• Along with incentive, the central government will offer 200 acres of land for manufacturing clusters.
• The scheme shall help to reinforce the connection between the international and domestic markets by boosting the supply chain and helping the suppliers better. In addition, it shall also reduce the logistics costs making it easy for the manufacturing team.
• Under this scheme, financial help will be given to both common facility centers and EMC projects.
• The application is valid for three years from the notification time.
• Companies can utilize the fund collected for different projects within five years.

Steps of online application for Modified Electronics Manufacturing Clusters

1. First, you have to click on the https://emc20.stpi.in/ link
2. Now, you have to click on the login option available on the home page
3. As the new login windows open up, you have to click on the ‘new user’ option that will direct to the digitalized application form relating to the scheme
4. In the form, one has to enter the registered office’s details, contact person of PIA, details of PIA, and other relevant details relating to the company.
5. After this, they have to click on the submit option to proceed with the online registration process.
6. By visiting the https://meity.gov.in/esdm/emc2.0 link, one can easily get the guidelines, notifications relating to the above said scheme.

However, the Project Implementing should make an application and it can work as a state government approved unit, central public sector unit, state public sector unit, industrial corridor development, and the like. The applications received under the scheme are considered as project review committee that shall help in choosing the projects.

What are the objectives of these schemes?

1. The main idea is to expand the manufacturing base as per China, Taiwan and Korea.
2. It also wants to develop as trusted value chain
3. It helps in enhances foreign exchange savings
4. It helps generate up to 10 lakhs of job in our country
5. Contributing for 20% to 30% of high-value addition

Due to the initiation of the above-said schemes, there has been an increase in the production of mobile handset reaching up to 29 crores units from the previous amount of 6 crores unit.

This way, India’s share in global production of electronics had increased to 3% as of 2018 from 1.3% in 2012. Also, mobile phone production shall increase, creating more direct and indirect job opportunities in India.