Lok Sabha Question No. 178 (UNSTARRED), answered on 2022-12-07
Subject: Promotions of SPECS
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Raju Bista

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED   QUESTION NO. 178

TO BE ANSWERED ON 07.12.2022

## PROMOTION OF SPECS

## 178. SHRI RAJU BISTA:

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

(a)  the  details  of  the  progress  on  the  Scheme  for  Promotion  of  Manufacturing  of Electronic Components and Semiconductor (SPECS);

- (b) the details of the projects applied for and sanctioned so far under this scheme;
- (c) the  steps  taken  by  the  Government  to  attract  further  investment  in  the  Electronic Components and semiconductors sector;
- (d) whether the Government has set a deadline by which the projects sanctioned under SPECS will start production; and
- (e) if so, the details thereof and if not, the reasons therefor?

## 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  Electronic System Design and Manufacturing hub in Global Value chain for Electronics as part of its AtmaNirbhar Bharat Economic policies.

As part of this, Government is broadening and deepening the electronics manufacturing ecosystem  in  the  country.  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 November 30, 2022, thirty two (32) applications with total project cost  of  Rs.11,130  crore.  The  total  employment  generation  potential  of  the  approved applications is 32,457 (Thirty two thousand Four hundred and Fifty Seven). The details are attached at Annexure.

(c): Government of India has taken strategic steps and initiatives to broaden and deepen the country's electronic manufacturing ecosystem. At this juncture, National Policy on Electronics  2019  (NPE  2019)  envisions  positioning India as a global hub  for Electronics  System  Design  and  Manufacturing  (ESDM)  by  encouraging  and  driving capabilities  in  the  country  for  developing  core  components,  including  chipsets,  and creating  an  enabling  environment  for  the  industry  to  compete  globally.  Apart  from SPECS, Government of India has launched many flagship schemes, the details of which are given below:

- (i) Production  Linked  Incentive  (PLI)  Scheme  for  Large  Scale  Electronics Manufacturing was notified on 1st April, 2020. The Scheme extends an incentive of 6%

to  4% on incremental sales (over base  year) of  goods under target segments that are manufactured in India to eligible companies, for a period of five (5) years.

Sixteen (16) companies have been approved under the first round of PLI Scheme for Large Scale Electronics Manufacturing.

After the success of the First Round of PLI Scheme in attracting investments in mobile phone and electronic components manufacturing, Second Round of the PLI Scheme for Large Scale Electronics Manufacturing was launched on 11.03.2021 for incentivising Electronic  Components.  Under  the  Second  Round,  incentives  of  5%  to  3%  shall  be extended on incremental sales (over base year i.e., FY 2019-20) of goods manufactured in  India  and  covered under the target segment, to eligible companies, for a period of four (4) years. Sixteen (16) companies have been approved under the second round of PLI Scheme for Large Scale Electronics Manufacturing.

(ii) In furtherance of the vision of AatmaNirbhar Bharat, the Cabinet approved the comprehensive  program  for  the  development  of  a  sustainable  semiconductor  and display ecosystem in the country with an outlay of ₹ 76,000 crore (>10 billion USD). The  program  will  usher  in  a  new  era  in  electronics  manufacturing  by  providing  a globally  competitive  incentive  package  to  companies  in  semiconductors  and  display manufacturing as well as design. Under the aforesaid program, following four schemes have been introduced:

- (i) Modified Scheme for setting up of Semiconductor Fabs in India - The Scheme extends  a  fiscal  support  of  50%  of  the  project  cost  for  setting  up  of  Silicon CMOS based Semiconductor Fab in India.
- (ii) Modified  Scheme  for  setting  up  of  Display  Fabs  in  India -Scheme  extends fiscal support of up to 50% of Project Cost for setting up of Display Fabs in India.
- (iii) Modified  Scheme  for  setting  up  of  Compound  Semiconductors  /  Silicon Photonics  /  Sensors  Fab  /  Discrete  Semiconductors  Fab  and  Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India - The scheme extends a fiscal support of 50% of the Capital Expenditure
- (iv) Design  Linked  Incentive  (DLI)  Scheme  -  The  scheme  provides  'Product Design Linked Incentive' of up to 50% of the eligible expenditure subject to a ceiling  of  ₹15  Crore  per  application  and  'Deployment  Linked  Incentive'  of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application.

(d) and (e): As laid down in the scheme guidelines the incentive will be available to the approved projects under the scheme for investment made within 5 years from the date of  acknowledgement  of  the  application  subject  to  capital  expenditure  meeting  the minimum threshold value and  commencement  of  commercial  production,  and compliance to other terms and conditions stipulated in Scheme / Guidelines / Approval Letter.

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|   Sl. No. | NAME                                          | Segment              | State            |
|-----------|-----------------------------------------------|----------------------|------------------|
|         1 | Tata Electronics Private Limited              | Electronic Component | Tamil Nadu       |
|         2 | Samsung Display Noida Private Limited         | Electronic Component | Uttar Pradesh    |
|         3 | Salcomp Technologies India Private Limited-II | Electronic Component | Tamil Nadu       |
|         4 | Salcomp Technologies India Private Limited-I  | Electronic Component | Tamil Nadu       |
|         5 | Te Connectivity India Private Limited         | Electronic Component | Maharashtra      |
|         6 | Sahasra Semiconductors Private Limited        | Electronic Component | Rajasthan        |
|         7 | Ifb Industries Ltd.                           | Electronic Component | Karnataka        |
|         8 | Idemia Syscom India Private Limited           | Electronic Component | Uttar Pradesh    |
|         9 | Molex (India) Private Limited                 | Electronic Component | Karnataka        |
|        10 | Circuit Systems India Limited                 | Electronic Component | Gujarat          |
|        11 | Ind Sphinx Precision Ltd                      | Electronic Component | Himachal Pradesh |
|        12 | Cosmo Ferrites Ltd                            | Electronic Component | Himachal Pradesh |
|        13 | Fci Oen Connectors Ltd                        | Electronic Component | Kerala           |
|        14 | Continental Device India Pvt Limited          | Electronic Component | Punjab           |
|        15 | Miyama Electric India Private Limited         | Electronic Component | Andhra Pradesh   |
|        16 | Deki Electronics Ltd                          | Electronic Component | Uttar Pradesh    |
|        17 | Signum Electro Private Limited                | Electronic Component | Himachal Pradesh |
|        18 | Tibrewala Electronics Limited                 | Electronic Component | Telangana        |
|        19 | Epitome Components Private Limited            | Electronic Component | Maharashtra      |
|        20 | Picl (India) Private Limited                  | Electronic Component | Haryana          |
|        21 | Alcon Electronics Pvt. Ltd.                   | Electronic Component | Maharashtra      |
|        22 | Tara Relays Private Limited                   | Electronic Component | Maharashtra      |
|        23 | Indtech Capacitors India                      | Electronic Component | Uttar Pradesh    |
|        24 | Hical Technologies Private Limited            | Electronic Component | Karnataka        |
|        25 | Panacea Medical Technologies Pvt Ltd          | Electronic Component | Karnataka        |
|        26 | Protectron Electromech Private Limited        | Electronic Component | Karnataka        |
|        27 | Nidec India Private Limited                   | Electronic Component | Rajasthan        |
|        28 | Hical Technologies Private Limited            | Electronic Component | Karnataka        |

|   29 | Shivalik Bimetal Controls Ltd.        | Electronic Component   | Himachal Pradesh   |
|------|---------------------------------------|------------------------|--------------------|
|   30 | Meena Circuits Private Limited        | Electronic Component   | Gujarat            |
|   31 | Atomberg Technologies Private Limited | Electronic Component   | Maharashtra        |
|   32 | Globe Capacitors Private limited      | Electronic Component   | Haryana            |

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