The Union Cabinet has taken major decisions to enhance manufacturing of electronic components, semiconductors and mobile segments.
In its meeting on Friday, the Cabinet approved ‘production-linked incentive scheme (PLI)’ scheme for promoting manufacturing of electronic components and semiconductors’ (SPECS) and Electronics Manufacturing Clusters (EMC) 2.0′.
The PLI scheme is proposed to offer a production-linked incentive to boost domestic manufacturing and attract large investments in mobile phone manufacturing and specified electronic components, including assembly, testing, marking and packaging (ATMP) units, an official statement said.
It will extend an incentive of 4 per cent to 6 per cent on incremental sales (over base year) of goods manufactured in India and covered under target segments to eligible companies for a period of five years subsequent to the base year as defined.
Addressing the media on Saturday, Union Minister for Electronics and IT, Ravi Shankar Prasad said that centre has earmarked a budgetary outlay of Rs 40,995 crore for five years under this scheme.
