What is the main objective of the SPECS scheme?

The main objective is to promote domestic manufacturing of electronic components and semiconductors by offsetting the disability faced by manufacturers, thereby strengthening India's electronics manufacturing ecosystem.

What kind of financial incentive does SPECS offer?

The scheme offers a financial incentive of 25% of the eligible capital expenditure on a reimbursement basis.

Who is eligible to apply for the SPECS scheme?

Any legal entity registered in India proposing to invest in manufacturing eligible electronic goods is eligible. This includes Private Limited Companies, Public Limited Companies, Sole Proprietorships, Partnerships, and Limited Liability Partnerships.

What types of investments are considered eligible capital expenditure?

Eligible capital expenditure covers plant, machinery, equipment, associated utilities, R&D expenses (including IPR/technology), and Transfer of Technology costs.

Are there minimum investment requirements?

Yes, the scheme specifies minimum investment thresholds for different categories of eligible goods, ranging from ₹5 crore to ₹10,000 crore, for which the 25% reimbursement applies.

Is there a deadline for applications?

No, applications under the SPECS scheme are appraised on an ongoing, rolling basis.

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) – Up to ₹250 Cr

The scheme "Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)" has been launched by the Ministry of Electronics and Information Technology (MeitY), Government of India. Its primary aim is to offset the disability for domestic manufacturing of electronic components and semiconductors, thereby strengthening the electronics manufacturing ecosystem in the country. This initiative aligns with the National Policy on Electronics 2019 (NPE 2019) and the Government's "Make in India" and "Digital India" programmes. Through SPECS, a substantial financial incentive of 25% of eligible capital expenditure is provided on a reimbursement basis. This incentive targets any legal entity registered in India that invests in critical areas such as eligible electronic components, semiconductor/display fabrication units, Assembly, Testing, Marking and Packaging (ATMP) units, specialised sub-assemblies, and capital goods necessary for the manufacture of these items. The scheme supports both the establishment of new manufacturing units and the expansion, modernisation, or diversification of existing ones. MeitY implements SPECS through a Nodal Agency, designated as the Project Management Agency (PMA), which is currently IFCI Ltd. The PMA plays a crucial role in managing the scheme, including receiving applications, conducting appraisals, issuing acknowledgements, verifying claims, and facilitating the disbursement of incentives. Applications are appraised continuously, and eligible proposals are then presented to an Executive Committee (EC), constituted by MeitY and chaired by a Joint Secretary-rank officer, for final recommendation.

The SPECS scheme provides a significant financial incentive, reimbursing 25% of eligible capital expenditure to approved units engaged in manufacturing electronic components and semiconductors. This incentive is designed to offset the economic disability faced by domestic manufacturers, promoting a robust electronics manufacturing ecosystem. Eligible capital expenditure includes a wide range of investments such as plant, machinery, equipment, associated utilities (captive power, clean rooms, IT/ITES infrastructure), Research and Development (R&D) costs (including IPR and technology software), and Transfer of Technology (ToT) expenses. The scheme allows for substantial investments, with the incentive ranging from a minimum of ₹1.25 crore (for projects with ₹5 crore capital expenditure) up to ₹250 crore (for projects with ₹1,000 crore capital expenditure). This support is available for both new manufacturing units and the expansion or modernisation of existing facilities.

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

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