Electronics Component Manufacturing Scheme

Description
The scheme "Electronics Component Manufacturing Scheme" has been launched by the Ministry of Electronics and Information Technology, Government of India. It aims to provide financial incentives for the manufacturing of identified electronic components and capital goods in Bharat. Through this scheme, turnover-linked and capital expenditure incentives are provided to companies and Limited Liability Partnerships investing in greenfield or brownfield projects within the target segments. The scheme is implemented by a Project Management Agency PMA appointed by the Ministry of Electronics and Information Technology MeitY . The scheme seeks to ensure the effective operation and smooth implementation of electronic system design and manufacturing ESDM through detailed industry consultations. It focuses on sub-assemblies, bare components, selected bare components, and the supply chain ecosystem, including capital equipment.

Exclusions
• The applicant shall not consider manufacturing through contract manufacturers as eligible under the scheme.
• The applicant shall not be eligible for incentives on investments or sales already incentivized under any other Government of Bharat scheme.
• The applicant shall not include expenditure on land and buildings as an eligible investment.
• The applicant shall not include expenditure on consumables and raw materials as an eligible investment.

Benefits
• Turnover Linked Incentive: Applicable to Sub-assemblies (Segment A) and Bare Components (Segment B). The incentive is calculated on net incremental sales over the base year, multiplied by the applicable incentive rate.
• Hybrid Incentive: Applicable to Selected Bare Components (Segment C), comprising both turnover-linked incentive and Capex incentive.
• Capex Incentive: Applicable to Supply Chain Ecosystem and Capital Equipment (Segment D). The incentive is calculated on eligible incremental capital expenditure, multiplied by the applicable incentive rate.
• Employment Incentive: A portion of the incentive (1% for turnover-linked or 5% for Capex) is specifically disbursed upon meeting cumulative incremental employment threshold criteria.
• Additional Incentive: An additional 2% incentive on incremental sales is provided for Li-ion Cells if cathode active material (CAM) is sourced or manufactured domestically.
• An additional 1% incentive on incremental sales is provided for Multi-layer PCB if the laminate is sourced or manufactured domestically.
• (Incentive rates listed year-wise across 6 years of the incentive period)

Eligibility Criteria
1. The applicant should be a company registered in Bharat under the Companies Act, 2013 (or the erstwhile Companies Act, 1956) or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008.
2. The applicant should be investing in the manufacture of target segment goods in Bharat.
3. The applicant shall meet the threshold criteria regarding investment, sales, and employment as per [Annexure 3](https://www.meity.gov.in/static/uploads/2025/04/30e8672a53f05b9f90d86d16901b23d2.pdf) of the guidelines.1. The applicant shall meet the minimum consolidated global Electronics System Design and Manufacturing (ESDM) revenue or manufacturing revenue for the Financial Year.
4. The applicant shall submit separate applications for each target segment product.
5. The applicant shall maintain a net worth greater than or equal to 50% of the proposed investment for target segment D.
6. The applicant shall ensure that Foreign Direct Investment (FDI) is in compliance with the FDI Policy Circular 2020.
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Application Process
Step 1: Step 1: Visit the Official Portal www.ecms.meity.gov.in and click on "Register".
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Step 1: Visit the Official Portal www.ecms.meity.gov.in and click on "Register".

Step 2: Step 2: Select your Type of Entity (Company / LLP), enter Registered Applicant Name, Company PAN, CIN / LLPIN, and Date of Incorporation.
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Step 2: Select your Type of Entity (Company / LLP), enter Registered Applicant Name, Company PAN, CIN / LLPIN, and Date of Incorporation.

Step 3: Step 2: Enter Name and Designation of the authorised signatory, set a Password, enter Email ID → click Send OTP → enter OTP, enter Mobile Number → click Send OTP → enter OTP.
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Step 2: Enter Name and Designation of the authorised signatory, set a Password, enter Email ID → click Send OTP → enter OTP, enter Mobile Number → click Send OTP → enter OTP.

Step 4: Step 3: Upload Certificate of Incorporation, Letter of Authorisation (on company letterhead, signed by Director), and PAN Card of Company.
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Step 3: Upload Certificate of Incorporation, Letter of Authorisation (on company letterhead, signed by Director), and PAN Card of Company.

Step 5: Step 4: Click the "Register" button → you will receive a confirmation on your email and mobile.
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Step 4: Click the "Register" button → you will receive a confirmation on your email and mobile.

Step 6: Step 5: Log in using your registered email and password → start filling out your actual application form.
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Step 5: Log in using your registered email and password → start filling out your actual application form.

Step 7: Step 7: Select your Target Segment (A / B / C / D / E) based on your product category
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Step 7: Select your Target Segment (A / B / C / D / E) based on your product category

Step 8: Step 8: Choose Incentive Type (Turnover-linked / Capex-linked / Hybrid) → fill in investment, sales, employment, and localisation details
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Step 8: Choose Incentive Type (Turnover-linked / Capex-linked / Hybrid) → fill in investment, sales, employment, and localisation details

Step 9: Step 9: Pay the non-refundable Application Fee online → submit the form → save your Unique Application ID
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Step 9: Pay the non-refundable Application Fee online → submit the form → save your Unique Application ID

Step 10: Step 10: PMA acknowledges within 15 working days → respond to any queries within 15 days → PMA forwards recommendations to the Governing Council (GC)
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Step 10: PMA acknowledges within 15 working days → respond to any queries within 15 days → PMA forwards recommendations to the Governing Council (GC)

Step 11: Step 11: GC sends for approval — Secretary MeitY (up to ₹100 Cr) or Minister of Electronics & IT (above ₹100 Cr) → begin manufacturing after approval
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Step 11: GC sends for approval — Secretary MeitY (up to ₹100 Cr) or Minister of Electronics & IT (above ₹100 Cr) → begin manufacturing after approval

Step 12: Step 12: Submit annual incentive claims through the portal every financial year → PMA verifies and disburses incentives on a first-come, first-served basis
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Step 12: Submit annual incentive claims through the portal every financial year → PMA verifies and disburses incentives on a first-come, first-served basis

Required Documents
• In-house capability document, or
• Binding term sheet with technology partner, or
• Technology transfer agreement

Frequently Asked Questions
Q: What is the objective of the scheme?
A: The main objective of the Electronics Component Manufacturing Scheme (ECMS) is to make India self-reliant (Atmanirbhar) in the electronics supply chain by building a strong domestic component manufacturing ecosystem.
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Q: Who can apply for ECMS?
A: Only a Company or LLP investing in the manufacturing of target segment electronics products is eligible. Both greenfield and brownfield projects are allowed.
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Q: What is the official portal to apply?
A: Applications are submitted online at [https://ecms.meity.gov.in/register.](https://ecms.meity.gov.in/register)
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Q: What are the Target Segments under ECMS?
A: There are 5 segments — A (Sub-assemblies), B (Bare Components), C (Selected Bare Components), D (Supply Chain &amp; Capital Equipment), and E (Telecom Sub-assembly)
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Q: What incentives are available?
A: Three types — Turnover-linked, Capex-linked, and Hybrid (combination of both)
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Q: What is the total budget of the scheme?
A: The scheme has a total budgeted outlay of ₹22,919 crores
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Q: How long does the scheme run?
A: The scheme runs for 6 years from FY 2025–26 with a 1-year gestation period for Segments A, B &amp; C
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Q: Can one company submit multiple applications?
A: Yes, but only one application per product is allowed. Separate applications are required for each product under the target segment
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Q: Is the application fee refundable?
A: No, the application fee is non-refundable.
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Q: What is the minimum investment required?
A: It varies by product — minimum ₹10 Cr for Segment D (Supply Chain &amp; Capital Equipment) and up to ₹1,000 Cr for HDI/MSAP/Flexible PCB
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Q: How long does PMA take to acknowledge the application?
A: PMA issues acknowledgement within 15 working days of application submission.
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Q: Who gives the final approval?
A: Secretary MeitY approves incentives up to ₹100 Cr and Minister of Electronics &amp; IT approves incentives above ₹100 Cr.
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Q: How are incentives disbursed?
A: Incentives are disbursed on a first-come, first-served basis after submission of certified annual claims, capped at 50% of the eligible incremental investment.
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