Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) – Ministry of Electronics and Information Technology

The Government on 01.04.2020 has come up with a proposed scheme for financial assistance to boost domestic manufacturing and attract large investments in the electronics value chain including electronics components and semiconductor packing. The features of scheme are as under:

• Entity eligible for scheme: Applicable for investments in New units or expansion of capacity / modernization and diversification of existing units who are into manufacturing of eligible products
• Quantum of Incentive:
  • 25% of capital expenditure for manufacture of specified goods;
  • Incentives will be provided on reimbursement basis.
  • Investments committed by the applicants under M-SIPS scheme for which incentives have been claimed will not qualify as eligible investments under SPECS scheme
• Tenure of Incentive: 5 Years
• Threshold Limit of Investment: Different investment threshold has been defined for eligible products in the policy
• Eligible Products: List of eligible goods has been included as part of Annexure of notification which includes SMT components including LED Chips, Printed Circuit Boards (PCBs), Camera Modules,
• Process of claiming Incentive:
  • Each application will be treated as new investment
  • It should be submitted before due date. Application to avail scheme may be applied within 3 years of its notification.
  • Application shall be only for single phase projects and phase wise applications will not be considered.
  • Multiple applications for multiple locations are allowed.
  • The unit receiving incentive under SPECS will have to remain in commercial production for a period of at least 3 (three) years from the date of commencement of production or 1(one) year from the date of receipt of last incentive, whichever is later.

Source: Notification issued by Ministry of Electronics and Information Technology on 01.04.2020.