Government May Open ECMS Applications On Rolling Basis From July 2027

New Delhi, Nov 9 (KNN) The government is likely to begin accepting fresh applications under the Electronics Component Manufacturing Scheme (ECMS) on a rolling basis from July 2027, after completing the scrutiny of applications received so far, a senior government official has said.

Rolling Applications Likely From July 2027

The proposed approach aims to ensure that companies planning new greenfield or brownfield manufacturing facilities are not excluded from incentives merely because they miss the application deadline while completing the required formalities.

Applicants must finalise several arrangements before becoming eligible for incentives, including technology partnerships, land acquisition and agreements for water, electricity and labour. These processes can take considerable time, reported the Business Standard.

Companies Need More Time To Complete Formalities

Companies often hold discussions with multiple states simultaneously to assess land availability, infrastructure support, incentives and tax concessions. Finalising and vetting agreements can take between 60 and 90 days, one official said.

The government is considering rolling applications to avoid losing potential investors who may be unable to complete all requirements within the stipulated application window.

ECMS Outlay Raised To Rs 40,000 Crore

Notified on April 8, 2025, the ECMS was initially allocated Rs 22,919 crore. The scheme's outlay was nearly doubled to Rs 40,000 crore in the Union Budget 2026-27.

118 Applications Approved Under The Scheme

Since its launch, the government has approved 118 applications under the scheme. It has received around 250 applications involving proposed investments of Rs 1.15 lakh crore, Union Electronics and IT Minister Ashwini Vaishnaw said in October.

Against the government's production target of Rs 4.56 lakh crore under the scheme, applicants have committed to production worth more than Rs 10 lakh crore, the minister had said.

(KNN Bureau)