Industry associations said the extension will boost local electronics manufacturing and is aimed at allowing filing of new applications that was discontinued at the end of the fiscal year on March 31, 2023. The scheme was extended via a notification on April 5.
SPECS was introduced in April 2020 to remove cost disabilities and strengthen electronics manufacturing, targeting the downstream value chain comprising electronic components, semiconductor/ display fabrication units, ATMP units, specialised sub-assemblies and capital goods for the manufacture of these components.
Under the scheme, the government offers financial incentives of 25% on capital expenditure in new units and modernisation of old units.
“The scheme has just been extended for a year … this is an interim arrangement to allow applications which were discontinued on March 31, 2023,” said Pankaj Mohindroo, chairman, India Cellular and Electronics Association.
He said deliberations were also ongoing to reframe the scheme with additional capital outlay, amendments in notified items and investment threshold limits.
SPECS, he said, had a financial outlay of Rs 3,250 crore, which has not been completely used. Finances, though, are considered blocked or used once applications are approved.”The extension will help applicants to get their projects approved swiftly…once the complete budget is exhausted with approvals, the scheme will stop,” he added.
SPECS was opened for applications in 2020 initially for three years – till March 31, 2023 – with incentives under the scheme available till fiscal 2028. With the extension, companies can apply till March 31, 2024.
In a written reply to the Lok Sabha, minister of state for electronics & IT Rajeev Chandrasekhar said the government had received 120 applications under SPECS. It has approved 34 applications with a total project cost of ₹11,187 crore, the minister said.
Mohindroo said Tata Electronics and Samsung were the biggest beneficiaries of the scheme.