Entrepreneurship and Development Programme 2026

This scheme offers financial help to companies and LLPs manufacturing electronic components in India, providing incentives linked Read More... to turnover and capital investment. Read less

Details

The Indian government, through the Ministry of Electronics and Information Technology (MeitY), has launched the Electronics Component Manufacturing Scheme (ECMS). This initiative aims to strengthen India's position in the global electronics market by boosting domestic manufacturing of essential electronic components and capital goods.

What Is This Scheme?

The ECMS is designed to provide significant financial incentives to companies and Limited Liability Partnerships (LLPs) that are setting up or expanding manufacturing facilities for specific electronic components and sub-assemblies in India. It encourages investment in both new (greenfield) and existing (brownfield) projects. The scheme focuses on building a robust supply chain ecosystem for electronics in the country.

Who Can Benefit From This Scheme?

Companies registered in India under the Companies Act, 2013, or LLPs registered under the LLP Act, 2008, are eligible to apply. The scheme specifically targets businesses that plan to invest in manufacturing the designated electronic components, sub-assemblies, or capital equipment. It's a big opportunity for businesses looking to contribute to India's electronics manufacturing prowess.

Why This Scheme Is Important

By promoting the local manufacturing of electronic components, the ECMS aims to reduce India's dependence on imports, create significant employment opportunities, and foster technological advancements in the electronics sector. This move is crucial for achieving self-reliance in critical electronic systems and strengthening the overall manufacturing base of the nation.

Objective

This scheme offers financial help to companies and LLPs manufacturing electronic components in India, providing incentives linked to turnover and capital investment.

Benefits

Under the Entrepreneurship and Development Program, Technology Resource Centers (TRCs) are established. These centers work on the development of advanced technologies based on locally available natural resources and improve them for business needs, so that businesses can be created by adding value to the available natural resources.

Sources and references

Guidelines (Page No. 85)

Who Can Apply for This Scheme?

You must be a Company registered in India under the Companies Act, 2013 (or the older Companies Act, 1956), or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008.
Your business must be investing in manufacturing the specified electronic components or goods in India.
You need to meet certain minimum requirements for investment, sales, and employment as detailed in Annexure 3 of the official guidelines.
Your company must achieve a minimum consolidated global Electronics System Design and Manufacturing (ESDM) revenue or manufacturing revenue for the Financial Year 2023–24.
If you are applying for multiple product types, you need to submit a separate application for each target segment product.
For applicants targeting Segment D (Supply Chain Ecosystem and Capital Equipment), your net worth should generally be at least 50% of the proposed investment.
All Foreign Direct Investment (FDI) must comply with the current FDI Policy.

How to Apply

The application process for the Electronics Component Manufacturing Scheme is conducted online:

Registration: Visit the official portal and register your company or LLP.
Application Submission: Fill out the detailed application form, providing all required information and uploading necessary documents.
PMA Acknowledgment: The Project Management Agency (PMA) will acknowledge your application within 15 working days.
Incentive Claims: After your project is approved and operational, you can submit annual claims for incentives. These are disbursed on a first-come, first-served basis, subject to annual limits.

Official Application Link: https://ecms.meity.gov.in/register

Documents You'll Need to Apply

Gathering the right documents is key to a smooth application process. Here's what you'll likely need:

For Registration:

Certificate of Incorporation for your company or LLP.
A Letter of Authorisation, signed by a Director on company letterhead.
Your Company's PAN Card.

For the Main Application Form:

A self-certified statement of your consolidated global ESDM or manufacturing revenue for FY 2023–24.
Detailed projections for your investment plans.
Sales projections document.
Your employment plan.
Localisation plan.
Manufacturing process flowchart.
An estimate of Domestic Value Addition (DVA).
Tentative list of capital equipment you plan to acquire.
Calculation of the expected incentive amount.
Proof of Technological Capability (if applicable): If you haven't met the ESDM revenue threshold, you'll need one of the following:
- Document demonstrating in-house technical capability, OR
- A binding term sheet with a technology partner, OR
- A technology transfer agreement.
Board Resolution (for Segment D applicants with specific net worth criteria): If your net worth is below 50% of the proposed investment for Segment D, you'll need a Board Resolution that commits the investment and confirms the funding source.

For Annual Incentive Claims:

Audited financial statements.
Employment records.
Proof of investment, such as invoices and purchase orders for plant and machinery.

FAQ’s

What's the main goal of the Electronics Component Manufacturing Scheme?

The primary aim of the ECMS is to make India self-sufficient in its electronics supply chain. It's about building a strong foundation for manufacturing electronic components right here in India.

Can a single company apply for multiple products?

Yes, absolutely. However, you must submit a separate application for each specific product you plan to manufacture under the scheme's target segments.

What are the different categories of products covered under ECMS?

The scheme covers five main categories: A (Sub-assemblies), B (Bare Components), C (Selected Bare Components), D (Supply Chain & Capital Equipment), and E (Telecom Sub-assembly).

How are the incentives paid out?

Incentives are disbursed on a 'first-come, first-served' basis. After you submit your certified annual claims, payments are made, but they are capped at 50% of the eligible incremental investment.

Is there a fee to apply, and is it refundable?

Yes, there is an application fee. However, this fee is non-refundable.

What types of financial support does the scheme offer?

The scheme provides three main types of incentives: those linked to your sales turnover, those linked to your capital expenditure (Capex), and a 'Hybrid' incentive which is a mix of both.

How long is the scheme expected to run?

The scheme is planned to run for 6 years, starting from the financial year 2025–26. For Segments A, B, and C, there's an additional 1-year period for getting projects started (gestation period).

Who is eligible to apply for this scheme?

Any company or Limited Liability Partnership (LLP) that plans to invest in manufacturing specific electronic products is eligible. Both new (greenfield) and existing (brownfield) manufacturing projects are welcome.

What is the total budget allocated for this scheme?

The scheme has a substantial budgeted outlay of ₹22,919 crores to support the growth of electronics manufacturing.

How much minimum investment is required to be eligible?

The minimum investment varies depending on the product. For Segment D (Supply Chain & Capital Equipment), it's at least ₹10 crore. For advanced products like HDI/MSAP/Flexible PCBs, the requirement can go up to ₹1,000 crore.

Where can I find the official online application portal?

You can access the official online portal for registration and application at https://ecms.meity.gov.in/register.

How quickly does the Project Management Agency (PMA) respond to an application?

The PMA is designed to acknowledge your submitted application within 15 working days of its receipt.

Who makes the final decisions on approving incentives?

The Secretary of MeitY is responsible for approving incentives up to ₹100 crore. For any incentives exceeding ₹100 crore, the final approval comes from the Minister of Electronics & Information Technology.