Sarkari Yojana
Electronics Component Manufacturing Scheme
About Electronics Component Manufacturing Scheme
The “Electronics Component Manufacturing Scheme” was launched by the Ministry of Electronics and Information Technology, Government of India, to provide financial incentives for manufacturing identified electronic components and capital goods in Bharat. It offers turnover-linked and capital-expenditure incentives to companies and Limited Liability Partnerships investing in greenfield or brownfield projects within the target segments. A Project Management Agency (PMA), appointed by MeitY, implements the scheme, working through detailed industry consultation to ensure effective, smooth implementation of electronic system design and manufacturing (ESDM). It focuses on sub-assemblies, bare components, selected bare components, and the supply chain ecosystem, including capital equipment.
Scheme Overview
Central Government
Ministry of Electronics and Information Technology
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Electronics Component Manufacturing Scheme, applicants must satisfy the following conditions:
The applicant should be a company registered in…
The applicant should be a company registered in Bharat under the Companies Act, 2013 (or the earlier Companies Act, 1956), or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008.
The applicant should be investing in manufacturing target-segment…
The applicant should be investing in manufacturing target-segment goods in Bharat.
The applicant must meet the investment, sales, and…
The applicant must meet the investment, sales, and employment thresholds set out in Annexure 3 of the guidelines.1. The applicant must meet the minimum consolidated global Electronics System Design and Manufacturing (ESDM) revenue or manufacturing revenue for the Financial Year.
The applicant must submit a separate application for…
The applicant must submit a separate application for each target-segment product.
The applicant must maintain a net worth of…
The applicant must maintain a net worth of at least 50% of the proposed investment for target segment D.
The applicant must ensure Foreign Direct Investment (FDI)…
The applicant must ensure Foreign Direct Investment (FDI) complies with the FDI Policy Circular 2020.
Benefits Provided
Electronics Component Manufacturing Scheme provides the following benefits to eligible applicants:
Nature of Incentives by Target Segment:
Depending on the target segment, the scheme provides three kinds of incentives. The segment-wise breakdown is:
Segment A – Sub-Assemblies: (1) Display module sub-assembly and (2) Camera module sub-assembly both receive a Turnover Linked Incentive.
Segment B – Bare Components: (3) Non-Surface mount devices (non-SMD) passive components for electronic applications, (4) Electro-mechanicals for electronic applications, (5) Multi-layer Printed Circuit Board (PCB), (6) Li-ion Cells for digital applications (excluding storage and mobility) and (7) Enclosures for Mobile, IT Hardware products and related devices are all eligible for a Turnover Linked Incentive.
Segment C – Selected Bare Components: (8) High-density interconnect (HDI)/ Modified semiadditive process (MSAP)/ Flexible PCB and (9) SMD passive components are covered by a Hybrid Incentive.
Segment D – Supply Chain Ecosystem and Capital Equipment: (10) Parts/components used in manufacturing the subassembly (A) and bare components (B) & (C), and (11) Capital goods used in electronics manufacturing, including their sub-assemblies and components, qualify for a Capex incentive.
Turnover Linked Incentive:
Covers Sub-assemblies (Segment A) and Bare Components (Segment B). It is worked out by multiplying the net incremental sales over the base year by the applicable incentive rate.
Hybrid Incentive:
Covers Selected Bare Components (Segment C) and combines a turnover-linked incentive with a Capex incentive.
Capex Incentive:
Covers Supply Chain Ecosystem and Capital Equipment (Segment D). It is worked out by multiplying the eligible incremental capital expenditure by the applicable incentive rate.
Employment Incentive:
Part of the incentive (1% for turnover-linked or 5% for Capex) is paid out only when the cumulative incremental employment threshold criteria are met.
Additional Incentive:
Li-ion Cells earn an extra 2% incentive on incremental sales where the cathode active material (CAM) is manufactured or sourced domestically.
Multi-layer PCB earns an extra 1% incentive on incremental sales where the laminate is manufactured or sourced domestically.
Incentive Rates:
The ESDM Revenue (₹) and Manufacturing Revenue (₹) thresholds for each target segment are:
Display module sub-assembly
Display module sub-assembly: ESDM Revenue of 250 crore; Manufacturing Revenue of 750 crore.
Camera module sub-assembly
Camera module sub-assembly: ESDM Revenue of 250 crore; Manufacturing Revenue of 750 crore.
Non-SMD passive components
Non-SMD passive components: ESDM Revenue of 50 crore; Manufacturing Revenue of 150 crore.
Electro-mechanicals
Electro-mechanicals: ESDM Revenue of 50 crore; Manufacturing Revenue of 150 crore.
Multi-layer PCB
Multi-layer PCB: ESDM Revenue of 50 crore; Manufacturing Revenue of 150 crore.
Li-ion Cells for digital applications (excluding storage and…
Li-ion Cells for digital applications (excluding storage and mobility): ESDM Revenue of 250 crore; Manufacturing Revenue of 750 crore.
Enclosures for Mobile, IT Hardware products and related…
Enclosures for Mobile, IT Hardware products and related devices: ESDM Revenue of 250 crore; Manufacturing Revenue of 750 crore.
HDI/MSAP/Flexible PCB
HDI/MSAP/Flexible PCB: ESDM Revenue of 500 crore; Manufacturing Revenue of 1500 crore.
SMD passive components
SMD passive components: ESDM Revenue of 250 crore; Manufacturing Revenue of 750 crore. (The incentive rates are set out year by year over the 6 years of the incentive period.)
Documents Required
Applicants should keep the following documents ready before starting the application:
For Registration:
The company's Certificate of Incorporation
The company's Certificate of Incorporation
An authorisation letter printed on company letterhead and…
An authorisation letter printed on company letterhead and signed by a Director
The PAN Card issued to the Company For…
The PAN Card issued to the Company For Application Form Submission:
A self-certified statement giving the consolidated global ESDM…
A self-certified statement giving the consolidated global ESDM or manufacturing revenue for FY 2023–24
A document setting out projected investment
A document setting out projected investment
A document setting out projected sales
A document setting out projected sales
The plan for employment generation
The plan for employment generation
The plan for localisation
The plan for localisation
A flowchart of the manufacturing process
A flowchart of the manufacturing process
An estimate of Domestic Value Addition (DVA)
An estimate of Domestic Value Addition (DVA)
A provisional list of capital equipment
A provisional list of capital equipment
A calculation of the incentive expected
A calculation of the incentive expected
Where the ESDM revenue threshold is not met,…
Where the ESDM revenue threshold is not met, evidence of technological capability in any one of these forms:
A document describing in-house capability, or
A binding term sheet signed with a technology partner, or
An agreement for technology transfer
A Board Resolution committing to the investment and…
A Board Resolution committing to the investment and stating the funding source (required only from Segment D applicants whose net worth is below 50% of the proposed investment) For Annual Incentive Claim:
Financial statements that have been audited
Financial statements that have been audited
Records of employment
Records of employment
Evidence of investment, such as invoices and purchase…
Evidence of investment, such as invoices and purchase orders for plant & machinery
How to Apply
Online Application
Applicants can apply for Electronics Component Manufacturing Scheme through the online application process outlined below.
Go to the Official Portal www.ecms.meity.gov.in and choose…
Go to the Official Portal www.ecms.meity.gov.in and choose "Register".
Pick the Type of Entity (Company / LLP),…
Pick the Type of Entity (Company / LLP), then provide the Registered Applicant Name, Company PAN, CIN / LLPIN, and Date of Incorporation.
Provide the Name and Designation of the authorised…
Provide the Name and Designation of the authorised signatory and create a Password; type in the Email ID → click Send OTP → key in the OTP, then type in the Mobile Number → click Send OTP → key in the OTP.
Attach the Certificate of Incorporation, a Letter of…
Attach the Certificate of Incorporation, a Letter of Authorisation (on company letterhead, signed by Director), and the PAN Card of Company.
Press the "Register" button → a confirmation will…
Press the "Register" button → a confirmation will arrive on your email and mobile.
Sign in with the registered email and password…
Sign in with the registered email and password → begin completing the actual application form.
Choose the Target Segment (A / B /…
Choose the Target Segment (A / B / C / D / E) that matches your product category
Pick the Incentive Type (Turnover-linked / Capex-linked /…
Pick the Incentive Type (Turnover-linked / Capex-linked / Hybrid) → enter the investment, sales, employment, and localisation details
Make the online payment of the non-refundable Application…
Make the online payment of the non-refundable Application Fee → submit the form → keep a record of the Unique Application ID
The PMA sends an acknowledgement within 15 working…
The PMA sends an acknowledgement within 15 working days → answer any queries raised within 15 days → the PMA then passes its recommendations to the Governing Council (GC)
The GC refers the case for approval —…
The GC refers the case for approval — to Secretary MeitY (up to ₹100 Cr) or to the Minister of Electronics & IT (above ₹100 Cr) → manufacturing can start once approved
Every financial year, file the annual incentive claims…
Every financial year, file the annual incentive claims on the portal → the PMA checks them and releases incentives on a first-come, first-served basis
Exclusions / Who Is Not Eligible
1. The applicant shall not consider manufacturing through contract manufacturers as eligible under the scheme.
1. The applicant shall not be eligible for incentives on investments or sales already incentivized under any other Government of Bharat scheme.
1. The applicant shall not include expenditure on land and buildings as an eligible investment.
1. The applicant shall not include expenditure on consumables and raw materials as an eligible investment.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.