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Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme

 To offset the disabilities faced by industries for quality infrastructure and to develop a robust electronics manufacturing ecosystem in the country to make India an Electronics Manufacturing Hub; Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme has been notified vide Gazette Notification No.CG-DL-E-01042020-218991 dated April 01, 2020 with the objective to address the disabilities, by providing support for creation of world class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers along with their supply chain to set up units in the country.

This Scheme will fortify the linkage between domestic and international market by strengthening supply chain responsiveness, consolidation of suppliers, decreased time-to-market, lower logistics costs, etc.

The EMC 2.0 Scheme provides financial assistance for setting up of both EMC projects and Common Facility Centres (CFCs) across the country. The Scheme is open for receipt of applications for a period of 3 years from the date of notification. Further period of 5 years is available for disbursement of funds to the approved projects.

An application shall be made by Project Implementing Agency (PIA) which can be State Government or State Implementing Agency (SIA) or Central Public Sector Unit (CPSU) or State Public Sector Unit (SPSU) or Industrial Corridor Development Corporation (ICDC) such as DMICDC, etc.

All the applications received under the EMC 2.0 Scheme through Project Management Agency (PMA) will be considered by Project Review Committee (PRC) for giving its recommendations to the PMA for according approval/ rejection of the projects.

Reacting to this Kishan Jain, Director at Goldmedal Electricals
“The Electronics Manufacturing Scheme 2.0 announced by the Union Cabinet today will be inviting applications for the Rs. 50,000 crore incentive programme. This initiative will open up opportunities for Indian and global electronic manufacturing companies to set up their operations and boost their capabilities within the country.”

Reacting to this Kishan Jain, Director at Goldmedal Electricals said, “The government’s decision to provide a boost to the electronics manufacturing sector in India is a welcome step, especially considering the current business scenario. The Electronics Manufacturing Scheme 2.0 announced by the Union Cabinet today will be inviting applications for the Rs. 50,000 crore incentive programme. This initiative will open up opportunities for Indian and global electronic manufacturing companies to set up their operations and boost their capabilities within the country. Today’s move coupled with earlier announced measures such as a production-linked incentive scheme (PLI) scheme for promoting the development of electronic components, will augur well for technology-driven companies. This can be great step in our journey towards becoming an electronics manufacturing hub of the world while at the same time providing a fillip to ‘Make in India’, especially in the current phase when the Indian economy is gradually opening up. All of these steps will provide a much needed boost to the sector and help homegrown companies such as Goldmedal Electricals to regain our growth momentum while further expanding our business operations in a post-COVID world.”

Parag Naik, CEO & Co-Founder, Saankhya Labs
“We welcome the Electronics Manufacturing Scheme 2.0 announced by the government to boost the electronics manufacturing industry in India.”

 This is an important decision by the Union Cabinet having taken into account the current business scenario and promoting domestic manufacturing of electronic components and semiconductors. By inviting Indian origin companies to apply for the Rs. 50,000 crore incentive scheme, it will augur well for Indian electronic companies and provide an opportunity to boost local manufacturing of electronics.

Earlier, the government had announced measures such as production-linked incentive scheme (PLI) for promoting manufacturing of electronic components and semiconductors SPECS) and Electronics Manufacturing Clusters (EMC) 2.0 with an aim to build a robust manufacturing ecosystem in the country.  Apart from the schemes just aligned towards manufacturing the government should also bring in schemes to encourage R&D and indigenous Technology Development. When the Indian Companies have a strong IP base they will be able to better compete with the global MNCs.

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