The government is working on a second version of an incentive scheme for electronics components Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).
Earlier MSIPS (modified special incentive package scheme) was launched. Now SPECS 1.0 has been implemented for components. We are working on the next SPECS…that will be done after taking issues of the electronics industry into consideration.
The Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) notified dated April 01, 2020, will help offset the disability for domestic manufacturing of electronic components and semiconductors in order to strengthen the electronics manufacturing ecosystem in the country.
The scheme will provide financial incentive of 25% on capital expenditure for the identified list of electronic goods that comprise downstream value chain of electronic products, i.e., electronic components, semiconductor/ display fabrication units, ATMP units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods, all of which involve high value-added manufacturing.
The Scheme will be applicable to investments in new units and expansion of capacity/ modernization and diversification of existing units.
Application under the Scheme can be made by any entity registered in India. An Applicant for the purpose of the Scheme is a legal entity, Private Limited Company, Public Limited Company, Sole Proprietorship, Partnership, or Limited Liability Partnership registered in India.
The capital expenditure will be total expenditure in plant, machinery, equipment, associated utilities and technology, including for Research & Development (R&D).
The Scheme is open for applications initially for 3 years from the date of its notification. Incentives under the Scheme will be applicable from the date of acknowledgment of the application. The incentives will be available for investment made within 5 years from the date of acknowledgement of application.
The Scheme will be implemented through a nodal agency which will act as Project Management Agency (PMA) and be responsible for providing secretarial, managerial and implementation support and carrying out other responsibilities as assigned by MeitY from time to time.
A company can apply under both the schemes if it is manufacturing components listed in both PLI and SPECS. However, eligibility criteria will have to be fulfilled in accordance with the respective schemes and guidelines thereof.
