Electronics Component Manufacturing Scheme

The primary objective of ECMS is to provide financial incentives for the manufacturing of identified electronic components and capital goods in India, thereby strengthening the domestic Electronics System Design and Manufacturing (ESDM) ecosystem and promoting self-reliance.

Companies registered under the Companies Act (2013 or 1956) or Limited Liability Partnerships (LLPs) registered under the LLP Act, 2008 in India are eligible. Applicants must be investing in the manufacture of target segment goods within India and meet specific investment, sales, and employment thresholds.

The scheme offers three main types of incentives: Turnover Linked Incentive (for Sub-assemblies and Bare Components), Capex Incentive (for Supply Chain Ecosystem and Capital Equipment), and Hybrid Incentive (combining both for Selected Bare Components). There are also additional employment-linked and domestic sourcing incentives.

The scheme description does not specify a fixed deadline, indicating that applications are accepted on a rolling basis. Eligible entities can apply as long as the scheme is active.

Incentives are generally disbursed annually upon verification by the Project Management Agency (PMA), based on meeting specific performance milestones related to incremental sales, capital expenditure, and employment thresholds, on a first-come, first-served basis.

While the scheme is open to eligible companies and LLPs, the specified revenue and investment thresholds (e.g., ₹50 crore ESDM revenue) imply that it is primarily targeted at established manufacturing entities or those with significant investment capabilities, rather than very early-stage startups.