Sarkari Yojana
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)”
About Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)”
The Ministry of Electronics and Information Technology (MeitY), through its Industrial Promotion — Electronics Hardware Manufacturing (IPHW) Division, runs the “Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)” to offset the cost disadvantage of manufacturing electronic components and semiconductors domestically, strengthening India’s electronics manufacturing ecosystem in line with the National Policy on Electronics 2019 (NPE 2019) and the Government’s “Make in India” and “Digital India” programmes. It reimburses 25% of capital expenditure to any India-registered legal entity investing in eligible electronic components, semiconductor/display fabrication units, Assembly, Testing, Marking and Packaging (ATMP) units, specialised sub-assemblies, and related capital goods — whether setting up new units or expanding, modernising, or diversifying existing ones. MeitY implements the scheme through a Nodal Agency serving as the Project Management Agency (PMA), which handles application receipt, appraisal, acknowledgement, claim verification, and incentive disbursement; the PMA appraises applications continuously and places eligible ones before an Executive Committee (EC) set up by MeitY, chaired by an officer of Joint Secretary rank or above.
Scheme Overview
Central Government
Ministry of Electronics and Information Technology
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)", applicants must satisfy the following conditions:
The applicant must be a legal entity registered…
The applicant must be a legal entity registered in India — a Private Limited Company, Public Limited Company, Sole Proprietorship, Partnership, or LLP.
The applicant must propose to invest in a…
The applicant must propose to invest in a project/unit manufacturing eligible goods, as listed in Annexure-1 of the SPECS Guidelines.
Each application is treated as a new, independent…
Each application is treated as a new, independent investment, covering only single-phase projects — phase-wise applications aren't considered.
Applicants may submit multiple applications and/or apply for…
Applicants may submit multiple applications and/or apply for multiple locations without restriction.
The proposed capital expenditure must meet or exceed…
The proposed capital expenditure must meet or exceed the threshold set for the relevant eligible goods under SPECS (per Annexure-1 of the Guidelines).
The scheme covers both new units and the…
The scheme covers both new units and the expansion, modernisation, or diversification of existing ones.
Minimum investment thresholds are identical whether the project…
Minimum investment thresholds are identical whether the project is a new unit or an expansion/modernisation/diversification of an existing one.
A single project/unit may span multiple manufacturing facilities…
A single project/unit may span multiple manufacturing facilities across one or more locations, and applicants face no cap on the number of applications submitted.
Where an application spans more than one product…
Where an application spans more than one product category, the minimum investment threshold applied is the highest among the individual category thresholds involved.
Eligibility under SPECS doesn't affect, or get affected…
Eligibility under SPECS doesn't affect, or get affected by, eligibility under any other scheme.
The application must include land documents — a…
The application must include land documents — a registered sale deed and/or a registered rent/lease agreement covering at least 10 years from the application date, under normal circumstances.
Where land is on rent/lease for less than…
Where land is on rent/lease for less than 10 years, the application proceeds only if the registered document includes a renewal clause; without one, the PMA may refer the matter to the Governing Council (GC) for a decision.
Where land hasn't yet been purchased or leased…
Where land hasn't yet been purchased or leased at application time, the applicant must give definite location/plot details plus documentation confirming its availability, with the final registered document to follow before the PMA submits its Appraisal Report to the EC.
The application must demonstrate Financial Closure for the…
The application must demonstrate Financial Closure for the full project investment, meaning:
A firm commitment from the applicant to invest under SPECS, via a Board Resolution.
A sanction letter/Letter of Intent (LoI) from a Bank/Financial Institution, or a loan agreement, for the debt portion.
A legally binding commitment from equity/unsecured loan providers, backed by an agreement and Board Resolution (Board Resolution isn't needed for Banks/FIs, where a sanction letter/LoI suffices).
A legally binding commitment of funding from internal accruals, where the applicant has an existing unit — assessed via past P&L, cash flow statements, etc.
Documentation showing fund providers' capability, in the form of unencumbered liquid funds (not applicable to Banks/FIs).
Benefits Provided
Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)" provides the following benefits to eligible applicants:
Financial Incentive:
Approved units manufacturing goods on the Scheme's eligible…
Approved units manufacturing goods on the Scheme's eligible list receive a financial incentive worth 25% of eligible capital expenditure.
This 25% of eligible capital expenditure is the…
This 25% of eligible capital expenditure is the total incentive available for an approved application.
It comes on top of any incentive the…
It comes on top of any incentive the State Government or its agencies/local bodies may separately offer.
Applicants may also benefit from other Government of…
Applicants may also benefit from other Government of India schemes; however, investments already claimed for incentives under the Modified Special Incentive Package Scheme (M-SIPS) don't qualify as eligible investments under SPECS. What Constitutes Eligible Capital Expenditure Capital expenditure covers:
Plant, machinery, equipment, and associated utilities — tools,…
Plant, machinery, equipment, and associated utilities — tools, dies, moulds, jigs, fixtures (plus their parts, accessories, components, and spares) — along with packaging, freight/transport, insurance, and erection/commissioning costs. Associated utilities include captive power and effluent treatment plants, clean rooms, air curtains, temperature/air quality control systems, compressed air/water/power supply, and manufacturing-related IT/ITES infrastructure such as servers, software, and ERP solutions.
Research and Development (R&D) — in-house and captive…
Research and Development (R&D) — in-house and captive R&D, test/measuring instruments, design tools, R&D-specific software, and expenditure on technology, IPR, patents, and copyrights.
Transfer of Technology (ToT) — the cost of…
Transfer of Technology (ToT) — the cost of technology and initial technology purchase for eligible goods.
Refurbished/used/second-hand plant, machinery, and equipment (including associated utilities…
Refurbished/used/second-hand plant, machinery, and equipment (including associated utilities and R&D), imported or domestic, up to 20% of total eligible plant/machinery/equipment expenditure, provided such equipment has at least 5 years of residual life at the time of transfer. The following are NOT eligible capital expenditure:
Land and building expenditure (including factory construction)
Land and building expenditure (including factory construction).
Consumables and raw materials used in manufacturing
Consumables and raw materials used in manufacturing. Sub-Limits within Eligible Capital Expenditure
Associated utilities
Associated utilities: capped at 20% of eligible plant, machinery, and equipment expenditure.
R&D expenditure
R&D expenditure: capped at 20% of eligible plant, machinery, equipment, and associated utilities expenditure.
Transfer of Technology (ToT)
Transfer of Technology (ToT): capped at 10% of eligible plant, machinery, equipment, and associated utilities expenditure.
Refurbished/used/second-hand equipment
Refurbished/used/second-hand equipment: capped at 20% of total eligible capital expenditure. Eligible Goods and Minimum Investment Thresholds Category A — Surface Mount Technology (SMT) components including LED Chips; Chip Modules for Smart Cards, RFID Antenna and Labels, Chip-on-Board (CoB)/System in Package; passive components (resistors, capacitors, ferrites); electromechanical components (transformers, inductors, coils, relays, switches, micro/stepper/BLDC motors, connectors, heat sinks, antennas, speakers, microphones) for electronic use; magnetrons, waveguides, circulators, couplers, isolators, filters, magnets, RF components for electronic use; PCBs, PCB laminates, prepegs, photopolymer films, PCB printing inks; printed flexible electronics; sensors, transducers, actuators, and crystals for electronic use; camera modules, vibrator motors/ringers; USB/data cables, HDMI cables; and capital goods for all SPECS-covered goods — minimum investment ₹5,00,00,000/- (₹5 Crore). Category B — Active components (discrete semiconductor devices like transistors, diodes); power semiconductors (FETs, MOSFETs, thyristors); preform of silica and optical fibre; display assembly and touch panel/cover glass assembly — minimum investment ₹15,00,00,000/- (₹15 Crore). Category C — Micro/nano-electronic components such as MEMS and NEMS; ATMP units — minimum investment ₹25,00,00,000/- (₹25 Crore). Category D — Mechanics (plastic and metal parts) for electronic applications — minimum investment ₹75,00,00,000/- (₹75 Crore). Category E — Compound semiconductors such as GaN, SiC, GaAs, and Silicon Photonics devices/ICs, optoelectronic components — minimum investment ₹2,50,00,00,000/- (₹250 Crore). Category F — Semiconductor wafers — minimum investment ₹5,00,00,00,000/- (₹500 Crore). Category G — Semiconductor Integrated Chips (Logic — microprocessors, microcontrollers, DSPs, ASICs; Memory; Analogue/Mixed Signal ICs), and display fabrication units (LCD, LED, OLED) for electronic applications — minimum investment ₹10,00,00,00,000/- (₹1,000 Crore).
Documents Required
Applicants should keep the following documents ready before starting the application:
Company / Applicant Details:
Certified copy of the Memorandum of Association (MOA)…
Certified copy of the Memorandum of Association (MOA) and Articles of Association (AOA), or equivalent registration document (for a Sole Proprietorship, any suitable document)
Statutory Auditor/Company Secretary certificate showing the shareholding pattern…
Statutory Auditor/Company Secretary certificate showing the shareholding pattern (number of shares and investment)
CA-certified copies of PAN and GST Certificate
CA-certified copies of PAN and GST Certificate
Self-certified brief profiles of the Chairman, CEO, CXOs,…
Self-certified brief profiles of the Chairman, CEO, CXOs, Directors, KMPs, key promoters, and authorised representatives, with their PAN/DIN
CA-certified copies of Annual Reports, including annual financial…
CA-certified copies of Annual Reports, including annual financial reports with schedules, for the past 3 years (most recent first)
Company Secretary/Board certificate on credit history — presence…
Company Secretary/Board certificate on credit history — presence of the applicant/non-independent directors/promoters in RBI's Defaulter and Wilful Defaulter lists, SEBI's Debarred list, and CIBIL score Financial Closure Documents:
True certified copy of the Board Resolution covering…
True certified copy of the Board Resolution covering proposed products, the investment schedule across sources (term loan, unsecured loan, equity, etc.), intent to invest under SPECS, and project location
CA-certified Annual Reports for the past 3 years…
CA-certified Annual Reports for the past 3 years (in Excel format)
For Term Loan
For Term Loan: sanction letter, loan agreement, appraisal note, and loan account statement (if disbursed)
For Internal Accruals
For Internal Accruals: documents supporting fund availability
For Equity
For Equity: documents supporting fund availability, equity subscription agreement, and commitment letters from equity providers
For Unsecured Loan
For Unsecured Loan: documents supporting fund availability, unsecured loan agreements, and commitment letters from lenders
Company Secretary-certified copy of the Sanction Letter and…
Company Secretary-certified copy of the Sanction Letter and Term Loan Agreement for debt
Company Secretary-certified copy of the Board Resolution for…
Company Secretary-certified copy of the Board Resolution for equity/unsecured loans (or equivalent proof for other entities) Capital Expenditure Documents:
Complete list of capital goods to be purchased,…
Complete list of capital goods to be purchased, with quotations and purchase orders (where issued)
Details of used/second-hand/refurbished plant, machinery, equipment, and associated…
Details of used/second-hand/refurbished plant, machinery, equipment, and associated utilities, if applicable
Copy of technology agreements with the technology provider,…
Copy of technology agreements with the technology provider, if applicable Land / Location Documents:
Documentation of land ownership (leased/owned) for the project
Documentation of land ownership (leased/owned) for the project
Documentation of building possession (leased/owned) for the project
Documentation of building possession (leased/owned) for the project
Registered sale deed and/or registered rent/lease agreement covering…
Registered sale deed and/or registered rent/lease agreement covering at least 10 years from the application date, along with documents confirming the location is in an industrial area Other Documents / Undertakings:
CA certificate (with membership number) showing the shareholding…
CA certificate (with membership number) showing the shareholding pattern
Self-certificate that the applicant isn't blacklisted by any…
Self-certificate that the applicant isn't blacklisted by any Government Department
Undertaking detailing any assistance sought/received from the Government…
Undertaking detailing any assistance sought/received from the Government of India apart from SPECS
Undertaking on the number of proposed manufacturing set-ups
Undertaking on the number of proposed manufacturing set-ups
Employment generation details
Employment generation details
Year-wise production capacity through project completion
Year-wise production capacity through project completion
Implementation schedule covering timelines for building construction, ordering…
Implementation schedule covering timelines for building construction, ordering machines, receiving/installing machines, pilot production, and commercial production
Overview of the manufacturing process and key raw…
Overview of the manufacturing process and key raw materials
Proof of the (non-refundable) application fee payment, made…
Proof of the (non-refundable) application fee payment, made electronically
Integrity Compliance Undertaking — Format-A (for applications/claims under…
Integrity Compliance Undertaking — Format-A (for applications/claims under consideration) and Format-B (after claim submission, before fund release) — signed by the CEO/MD/Director
How to Apply
Online Application
Applicants can apply for Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)" through the online application process outlined below.
Go to the official SPECS website
Go to the official SPECS website.
Register using your PAN as the User ID,…
Register using your PAN as the User ID, set a password, enter the CAPTCHA shown, and click 'Register'.
After logging in, complete the Application Form, which…
After logging in, complete the Application Form, which has 3 sections:
Section 1:
Applicant Details (company structure, company details, credit history, financial details);
Section 2:
Proposal (eligible goods, projections, investment size, financial closure details, operations/facilities analysis, market research on feasibility, regulatory treatment);
Section 3:
Application Fee Details (proof of fee payment).
Pay the non-refundable application fee electronically before submitting…
Pay the non-refundable application fee electronically before submitting — ranging from ₹10,000/- (projects under ₹25,00,00,000/-) to ₹1,25,000/- (projects of ₹10,00,00,00,000/- and above).
Attach all required documents and submit the complete…
Attach all required documents and submit the complete application. On success, you'll get a unique Application ID — keep it for future correspondence. After Registration:
IFCI Ltd
IFCI Ltd. checks your application for completeness. If incomplete, you're notified within 15 working days and given a further 15 working days to complete it, failing which the application closes.
If it meets all criteria, the PMA issues…
If it meets all criteria, the PMA issues an Acknowledgement bearing your Application ID. Note: This is NOT an approval — the acknowledgement date starts your 5-year investment window.
The PMA appraises your application in detail, and…
The PMA appraises your application in detail, and you must provide any additional information requested.
The PMA places your application before the EC…
The PMA places your application before the EC set up by MeitY, which recommends approval, rejection, or modification.
The PMA issues an Approval Letter to you,…
The PMA issues an Approval Letter to you, copying MeitY. (Note: the Approval Letter doesn't guarantee disbursement.) Claiming Your Incentive:
Incur eligible capital expenditure within 5 years of…
Incur eligible capital expenditure within 5 years of the acknowledgement date.
Commercial production must begin before an incentive claim…
Commercial production must begin before an incentive claim can be made.
Log in to SPECS and submit your Claim…
Log in to SPECS and submit your Claim for Incentive every 6 months, strictly on a cash basis (not accrual). See the claim manual for details.
The PMA verifies your claim via documents and/or…
The PMA verifies your claim via documents and/or site visits, physically checking at least 30% of the eligible capital expenditure items.
The PMA issues a Sanction Letter approving the…
The PMA issues a Sanction Letter approving the claim.
Submit the Integrity Compliance Undertaking, Indemnity Bond, and…
Submit the Integrity Compliance Undertaking, Indemnity Bond, and any other required documents.
The PMA disburses the incentive once all formalities…
The PMA disburses the incentive once all formalities are complete. Note: Commercial production must continue for at least 3 years from its start, or 1 year from the last incentive received, whichever is later.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.