(MENAFN- KNN India) New Delhi, Apr 1 (KNN) The Ministry of Electronics and Information Technology (MeitY) will unveil a new production-linked incentive (PLI) scheme for electronic component manufacturing after the general elections.
This move comes as the current Rs 3,285 crore Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) expired on March 31, 2024.
While no new applications will be accepted under SPECS, the government will continue disbursing incentives to the 42 companies already selected with proposed investments totalling Rs 11,690 crore. As of February 2024, Rs 378.37 crore in incentives had been disbursed.
The upcoming PLI scheme will work like others by offering incentives based on achieving incremental production and sales targets. Officials are identifying the list of eligible components.
Discussions with industry are underway to design the new scheme with a focus on increasing domestic value addition as electronics exports rise.
Issues with SPECS included a "one size fits all" approach bundling all components together despite differing financial needs.
"We are looking to design products in India, own the IP, and increase the number of components manufactured domestically," said MeitY Secretary S. Krishnan.
India aims to become an electronics manufacturing hub with USD 300 billion in production targeted by 2025-26, up fr0m USD 102 billion in FY23.
Leading executives have been tapped to develop a component manufacturing roadmap.
The new PLI scheme is part of efforts to make India both a product nation and component-producing destination after success in becoming a mobile phone exporter.
(KNN Bureau)
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