New Delhi, Nov 1 (KNN) A separate production-linked incentive (PLI) scheme for electronics component manufacturing is currently being evaluated by the Ministry of Electronics and Information Technology (MeitY), reported FE. 

Sources familiar with the matter told FE that the ministry is expected to discuss this proposal with the Ministry of Commerce and Industry as well as NITI Aayog to explore the prospects and structure of the scheme.

Many players, including Dixon Technologies, have urged the government to establish a distinct PLI scheme for electronics components, separate from the scheme for the promotion of manufacturing of electronic components and semiconductors (SPECS), in order to make India self-reliant in the entire value chain of electronics ecosystem, government officials said.

Industry officials have pointed out that a separate PLI scheme would address the issue of the government’s ‘one size fits all’ approach. Under the current SPECS scheme, all capital goods, active and passive electronic components, such as resistors, capacitors, ferrites, diodes, as well as semiconductor wafers and integrated chips (ICs), are bundled together. The existing scheme offers a financial incentive of 25% of capital expenditure for the manufacturing of these goods.

Electronic components, especially passive ones, fall into different categories with varying financial requirements, magnitudes, sizes, valuations, employee requirements, and production techniques. Therefore, it is difficult to achieve the necessary scale under the present scheme, according to an executive at an electronics manufacturing company.

While the IT ministry plans to discuss this matter with the commerce ministry, the latter is currently not enthusiastic about introducing additional PLI schemes, according to government officials.

(KNN Bureau)