About Electronics Component Manufacturing Scheme:
- It is the first dedicated Production-Linked Incentive (PLI) scheme to promote the manufacturing of select passive electronic components, including resistors, capacitors, speakers, microphones, special ceramics, relays, switches, and connectors.
- Objective: To develop a robust component manufacturing ecosystem by attracting investments (global / domestic) across the value chain by integrating its domestic electronic industry with the Global Value Chains (GVCs).
- The scheme will offer three incentive structures:
- Turnover-linked incentive (based on revenue)
- Capex-linked incentive (for investments in plants & machinery)
- Hybrid incentive model (a combination of both)
- Incentives for incremental investments and turnover range from 1–10% depending on the year and the component.
- Employment generation will be a mandatory requirement for all applicants, including both component manufacturers and capital equipment producers.
- Tenure: This scheme has tenure of six years, with a one-year gestation period.
- The scheme focuses particularly on passive electronic components. In contrast, active components fall under the purview of the India Semiconductor Mission (ISM).
- This scheme is set to benefit a number of industries, such as automobiles, consumer electronics, and electronics.
