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New Delhi: The Ministry of Electronics & Information Technology has extended the scheme for the promotion of electronics components and semiconductor<\/a> (SPECS<\/a>) by a year.

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<\/a>, chairman, India Cellular and Electronics Association<\/a>.

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.

<\/p>

\"Madhya<\/a><\/figure>

Madhya Pradesh, Odisha, Punjab have shown interest in facilitating semiconductor units: Government<\/a><\/h2>

“Setting up of semiconductor unit requires huge investments and necessitates suitable infrastructure like availability of uninterrupted power and clean water. Further, semiconductors manufacturing is a very complex and technology-intensive sector with huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology which requires significant and sustained investments,” Chandrasekhar said. <\/p><\/div>

New Delhi: The Ministry of Electronics & Information Technology has extended the scheme for the promotion of electronics components and semiconductor<\/a> (SPECS<\/a>) by a year.

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<\/a>, chairman, India Cellular and Electronics Association<\/a>.

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.

<\/p>

\"Madhya<\/a><\/figure>

Madhya Pradesh, Odisha, Punjab have shown interest in facilitating semiconductor units: Government<\/a><\/h2>

“Setting up of semiconductor unit requires huge investments and necessitates suitable infrastructure like availability of uninterrupted power and clean water. Further, semiconductors manufacturing is a very complex and technology-intensive sector with huge capital investments, high risk, long gestation and payback periods, and rapid changes in technology which requires significant and sustained investments,” Chandrasekhar said. <\/p><\/div>