MSMEs constitute 80% of applications for govt's electronic component manufacturing scheme

The government has received 70 applications for the Rs 23,000-crore electronics component manufacturing scheme, and the majority of applicants are small and medium enterprises, Union Minister Ashwini Vaishnaw said.

These applications have come within half a month of opening the window for the scheme

"Electronics Component Manufacturing Scheme has received tremendous response. Within 15 days of opening the application, around 70 applications have come," Vaishnaw told PTI.

The minister did not disclose the names of the applicants. However, sources have earlier mentioned that Tata Electronics, Dixon Technologies, and Foxconn were among the big players that have shown interest in the scheme.

Vaishnaw said that while some of the big players have applied, there has been huge interest in the scheme from small and medium players.

"80% of the applications have come from small and medium enterprises," the minister said.

The government opened applications for the Rs 22,805-crore electronics component manufacturing scheme (ECMS) on May 1.

The scheme aims to address the demand-supply deficit in the electronic component segment.

Electronic Industries Association of India (Elcina), the country's oldest industry body of the Indian electronics sector, estimates that the demand-supply deficit for inputs in the electronics segment will increase to $248 billion (about Rs 21 lakh crore) by 2030 to cater to projected $500 billion electronics production, and it would be met largely by imports in absence of any measure from the government.

The major portion of the scheme, Rs 21,093 crore, is earmarked for sub-assemblies like camera module, multi-layered printed circuit board (PCB), flexible PCB, and passive components that are fixed on the PCB by machines. A total of Rs 1,712 crore has been earmarked for making parts used in sub-assemblies and capital goods used in electronics manufacturing.

The scheme classifies display module and camera module sub-assembly in A category, while category B products include bare components like non-surface mount devices (non-SMD), multi-layered printed circuit board, lithium-ion cells for digital applications, enclosures for mobile, IT hardware products and related devices.

Category C includes components like flexible PCB, SMD passive components.

Besides, components used in making items listed under A, B and C categories as well as capital goods used in electronics manufacturing have been clubbed under D category.

The government has opened the application window for A, B and C categories initially for three months starting May 1, and for a period of two years for D category items.