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Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

Electronic components are one of the fundamental building blocks in the global electronics industry and are used in the manufacturing of all sorts of consumer, industrial, and telecom products. India is making great strides to develop a vibrant electronics manufacturing ecosystem. The electronic components industry is being considered a sunrise industry in India, as there is inherent potential in this sector to make further valuable additions to GDP through its wide range of end products. It also has a high export potential which provides a vital link between India’s major export business and foreign shores. The Government of India has put in place all the necessary policies, institutions, and instruments to promote investments in the country’s electronics manufacturing.

Objective of the Scheme

The objective of the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors is to promote the manufacturing of Electronic Components, Semiconductor wafers, Display Panel, Advanced Technology Modules (ATM) Processes, Development and Fabrication Units, and Capital Goods.

The conclusion of the scheme will also result in the creation of high-value domestic jobs in the ESDM sector as well as a reduction in component import by the domestic electronic system design and manufacturing industry, thereby leading to lower electronics import bills.

Project Cost

The Project Cost of Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors has been sanctioned by the Government, with a 5-year validity period. This scheme is given for the exclusive use of Electronic components and Semiconductors Manufacturers, which are emerging as sunrise sectors of the economy. The scheme will be open for applications for a period of 3 years from the date of notification. The investment in new units and expansion/modernization/diversification in existing units will be eligible under SPECS which is provided with an outlay of about USD 440 Mn.

Eligibility Criteria

The scheme will have eligibility criteria for investments in capital equipment, expansion of units, modernization, and diversification of production facilities. The Scheme allows investments completely in the form of equity or through a combination of equity and debt (i.e through loan / working capital credit).

How to Submit the Application

  • To apply under the Scheme, you must be a legal entity registered in India. This can be a Private Limited Company, Public Limited Company, Sole Proprietorship, Partnership, or Limited Liability Partnership.
  • The application should contain all of the documents necessary to prove ownership of the land.
  • If the land has not been purchased or taken on rent/lease at the time of application, the applicant must provide details about the location and a document confirming that the land is available. But the final registered document such as the sale deed and/or registered rent/lease agreement must be provided before PMA submits an appraisal report to the EC.
  • The application should include a statement of the amount of funding required to complete the project.
  • There is no limit on the number of times you can apply or locations you can apply for.
  • For the purpose of determining whether a project can benefit from the Scheme, any investment by other entities will not be counted towards the capital expenditure incurred by applicants.
  • Once you submit a completed application in the prescribed format, the PMA will examine it to make sure it meets the criteria in the guidelines. This examination will be completed within 15 working days from when we receive your application or within 15 working days of any subsequent submission of revised information if we returned your original application as incomplete earlier. No original application will be accepted after the end of the application period.
  • If, after examining your application, the PMA finds that information is missing or unclear, it will inform you within 15 working days of receiving your application. You must complete any missing or unclear information within 15 days of receiving this communication from the PMA, or the application will be closed.
  • For an application that fairly meets the criteria as laid out in these Guidelines, the PMA will acknowledge its receipt within 15 working days of receiving the application. The acknowledgment is not approved under the Scheme. If upon examination, it is found that an original or revised application does not fairly meet the criteria as laid out in Annexure-3, then the PMA will inform the applicant accordingly within 15 working days post completion of the examination and close down the application.
  • A non-refundable application fee would be payable for each application, as specified in the accompanying schedule. The fee must be paid online.
  • Applications received during the application period will be reviewed on an ongoing basis and approved as they are deemed appropriate.
  • Applications will be evaluated in terms of the eligibility of the applicants for support under the scheme. The completeness of applications will be determined using the indicative list of required information/documents.
  • Applications submitted more than three years after the date of the notification of the Scheme will not be considered.

Documents Required to Apply for the Scheme

The application must contain the requisite land documents such as:

  • A registered sale deed and/ or rent/ lease agreement on the land for 10 years from the date of application in usual circumstances.
  • If a landowner has taken a lease on his property for less than 10 years, the application will be processed if there is a renewal clause in the document registering the agreement.
  • If the renewal clause is not present in a registered rent/lease agreement, the Project Management Agency may refer the matter to the Governing Council for its consideration.

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors Details

Collateral Security: As per Norms

Processing Fees: As per Norms

Scheme Validation: valid up to three years from the date of notification i.e 01/04/2020

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