The government is planning to roll out a revamped incentive scheme, totalling up to Rs 100 billion, aimed at fostering the development of electronic and semiconductor component plants within the country. This initiative seeks to cultivate a supportive ecosystem for mega chip-packaging units being established by global entities such as Micron, Tata Group, and Kaynes Corp.
The new incentive plan, a revised iteration of the existing Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), is likely to be launched early 2024. At present, SPECS provides reimbursement of up to 25 per cent of the total capital expenditure post-project completion.
Furthermore, as of October 2023, the Ministry of Electronics and Information Technology (MeitY) has greenlit 38 applications, representing a proposed investment of Rs 114.85 billion, with committed incentives of Rs 15.74 billion under the SPECS scheme. However, only about Rs 3.65 billion has been disbursed to six applications until this period.
