Government of India extends sops for SPECS by a year

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductor (SPECS) has been extended by the Ministry of Electronics & Information Technology by a year.

According to industry associations, the extension will encourage local electronics manufacturing and it is also aimed at allowing filing of new applications that was discontinued at the end of the fiscal year on March 31, 2023. On April 5, the scheme was extended through a notification.

In April 2020, SPECS was introduced to remove cost disabilities and strengthen electronics manufacturing, targeting the downstream value chain comprising electronic components, semiconductor/ display fabrication units, ATMP units, specialised sub-assemblies and capital goods for the manufacture of these components.

The government, under the scheme, offers financial incentives of 25% on capital expenditure in new units and modernisation of old units.

"The scheme has just been extended for a year ... this is an interim arrangement to allow applications which were discontinued on March 31, 2023," said Pankaj Mohindroo, Chairman, India Cellular and Electronics Association.

He said deliberations were also ongoing to reframe the scheme with additional capital outlay, amendments in notified items and investment threshold limits.

SPECS, he said, had a financial outlay of Rs 3,250 crore, which has not been completely used. Finances, though, are considered blocked or used once applications are approved.

"The extension will help applicants to get their projects approved swiftly...once the complete budget is exhausted with approvals, the scheme will stop," he added.