Lok Sabha Question No. 3255 (UNSTARRED), answered on 2022-03-23
Subject: Promotion of SPECS
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Sudhakar Tukaram Shrangre, Arun Sao, Vijay Baghel, Shivkumar Chanabasappa Udasi

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED  QUESTION NO. 3255

TO BE ANSWERED ON 23.03.2022

## PROMOTION OF SPECS

## 3255.   SHRI SUDHAKAR TUKARAM SHRANGARE: SHRI ARUN SAO: SHRI VIJAY BAGHEL: SHRI SHIVAKUMAR C. UDASI:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) the details of the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductor (SPECS) announced by the Government for the Electronic Manufacturing Sector;
- (b) whether the investment commitment by various electronic companies has been approved and if so, the details thereof;
- (c) whether the Government has received any proposal from foreign investors for setting up of electronic equipment manufacturing factories in the country; and
- (d) if so, the details thereof

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAJEEV CHANDRASEKHAR)

(a) and (b): Government  of  India's  goal  is  to  make  India  a  significant  design  and  manufacturing  hub  in Global Value chain for Electronics as part of its AtmaNirbhar Bharat Economic policies. As part of this, we are broadening and deepening our electronics manufacturing ecosystem.To establish India as a global leader in electronics  manufacturing,  Government  of  India  has  launched  many  flagship  schemes  which  are  aimed  at 'Atmanirbhar  Bharat  -  A  self-reliant  India'  under  the  aegis  of  National  Policy  on  Electronics  2019  (NPE 2019).The Scheme  for  Promotion  of  Manufacturing  of  Electronic  Components  and  Semiconductors (SPECS) is a step in this direction. It was notified on April 01, 2020 and provides financial incentive of 25% on  capital  expenditure  for  the  identified  list  of  electronic  goods  that  comprise  downstream  value  chain  of electronic  products,  i.e.,  electronic  components,  semiconductor  /  display  fabrication  units,  ATMP  units, specialized  sub-assemblies  and  capital  goods  for  manufacture  of  aforesaid  goods.  The  scheme  is  open  to receive applications till 31.03.2023. As on February 28, 2022, the Executive Committee (EC) has approved 23 applications with total  project outlay of  Rs.6,816  crore  and committed incentives of  Rs  1,245  crore.  The total employment generation potentia l  of  the  approved  applications  is  29,021  (Twenty  nine  thousand  and twenty one).

(c) and  (d): The Government has taken strategic steps and initiatives to expand the electronics manufacturing sector in the country and make India a global electronics manufacturing hub. As a result of various initiatives taken by the Government, several proposals have been received from foreign investors under the following schemes:

- (i) Under  the  Modified  Special  Incentive  Package  Scheme  (M-SIPS),  a  total  of  127  proposals  with proposed  investment  of  Rs  59,086  crore  from  companies  having  foreign  shareholding  are  under
- consideration for setting up of units for manufacturing of electronic goods/products. Out of these 127 proposals,  124  proposals  with  proposed  investment  of  Rs  56,341  crore  have  been  approved. The reported capital expenditure incurred by 104 approved applicants (out of the approved 124 applicants) for electronic equipment manufacturing is Rs. 19,600 crore.
- (ii) Under  the  Production  Linked  Incentive  Scheme  (PLI)  for  Large  Scale  Electronics  Manufacturing notified on 1 st April, 2020, a total of 12 applications from foreign companies have been approved.
- (iii) Under the Production Linked Incentive Scheme (PLI) for IT Hardware notified on 03 rd March, 2021, a total of 4 applications from foreign companies have been approved.

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