The Ministry of Electronics and Information Technology (MeitY) has extended the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) by a year. According to industry associations, the extension will boost local electronics manufacturing and is aimed at allowing the filing of new applications that was discontinued at the end of the fiscal year on March 31, 2023. The scheme was extended through a notification on April 5, 2023.
SPECS was launched in April 2020 to remove cost disabilities and strengthen electronics manufacturing, targeting the downstream value chain comprising digital parts, semiconductor/display fabrication units, ATMP items, specialised sub-assemblies and capital goods for the manufacture of these components. Under the scheme, the government offers financial incentives of 25 per cent on capital expenditure in new units and modernisation of old units.
In a written reply to the Lok Sabha, Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology and Skill Development and Entrepreneurship, informed that the government had received 120 applications under SPECS. It has approved 34 applications with a total project cost of Rs 111.87 billion.
SPECS was opened for applications in 2020 initially for three years till March 31, 2023, with incentives under the scheme available till fiscal year 2028. With the extension, companies can apply till March 31, 2024.
