Govt likely to extend electronic manufacturing scheme beyond July on high interest: Official

Govt likely to extend electronic manufacturing scheme beyond July on high interest: Official

The central government is likely to extend the application deadline for the Electronic Component Manufacturing Scheme (ECMS) beyond July, official sources told Moneycontrol on Thursday.

“We have received healthy response to the scheme till now, and are considering extending the deadline by a short notice,” person aware of the development said, adding that the current applications are being monitored.

In May, Information and Broadcasting Minister Ashwini Vaishnaw had said that the scheme in the first 20 days had attracted 70 applications. Tata Electronics, Dixon Technologies, and Foxconn are among the big players that have shown interest in the scheme, according to sources.

The Rs 23,000-crore directly-funded ECM scheme was launched on May 1, aimed at addressing the demand-supply deficit in the electronic component segment.

According to an official release, dated March 28, this scheme aims to develop a robust component ecosystem by attracting large investments (global/domestic) in electronics component manufacturing ecosystem, increasing domestic value addition (DVA) by developing capacity and capabilities, and integrating Indian companies with global value chains (GVCs).

The scheme envisages to attract investment of Rs 59,350 crore, result in production of Rs 4,56,500 crore and generate additional direct employment of 91,600 persons and many indirect jobs as well during its tenure, the release said.