Cabinet approves incentives for electronics makers

Cabinet approves production-linked incentives for electronics manufacturing firms

Representative image. (Credit: Pixabay Photo)

The Centre on Saturday approved production-linked incentives worth Rs 40,995 crore for electronics manufacturing companies to boost the domestic production of electronic goods.

"Union Cabinet approved the production linked-incentive for electronics companies. We will give Rs 40,995 crore in the coming five years for production linked-incentive. This will help to boot the production of electronics goods," Union Telecom and IT Minister Ravi Shankar Prasad told reporters. 

Since the incentives will be linked to incremental sales and capital investment of the companies the Minister said the government expecting to generate manufacturing revenue potential of Rs 10 lakh crore by 2025 .

The scheme also have potential to generate over 2,00,000 direct jobs over 5 years.  
It is also expected that the scheme would lead to large scale electronics manufacturing in the country and open tremendous employment opportunities up to 8 lakh both in direct and indirect, he said.

The scheme is aimed to promote domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including Assembly, Testing, Marking and Packaging (ATMP) units.

Due to this the domestic value addition for mobile phones is expected to rise to 35 per cent to 40 per cent by 2025 from the current level of 2 per cent-25 per cent," a statement said. 

Clusters : 

The cabinet also approved financial assistance to the Modified Electronics Manufacturing Clusters (EMC2.0) Scheme for development of world class infrastructure along with common facilities and amenities through Electronics Manufacturing Clusters (EMCs)

The MEC2.0 will scheme would support setting up of both Electronics Manufacturing Clusters (EMCs) and Common Facility Centers (CFCs). The total budget for the scheme is Rs. 3,762.25 crore.

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