Centre okays 22 more investment proposals worth ₹42K crore under ECMS

The government cleared 22 more applications with investment proposals worth ₹41,863 crore under the Electronics Component Manufacturing Scheme (ECMS) on Friday. With these approvals, the total number of companies that have received the government’s nod under the ECMS has now reached 46, with a cumulative investment of ₹54,567 crore.

The companies that have received approvals in this round include TDK India, BPL, Wipro Hydraulics, Motherson Electronic

Components, Tata Electronics, Foxconn arm Yuzhan Technology, Samsung Display, Dixon, and Hindalco, among others.

Companies which received the go-ahead on Friday will make components such as capacitors, Lithium-ion cells for electronic devices, copper-clad laminates, enclosures, anode material, connectors, display, and camera module sub-assembly.


After distributing approval letters, Union Electronics and Information Technology Minister Ashwini Vaishnaw reiterated his stance that all firms should set up in-house design teams, no matter the cost or effort involved.

“Even if you have a couple of employees in the design team, the team should be there. If there are big teams, that is most welcome,” Vaishnaw said.

The Union minister also suggested that all the firms that have received approvals so far should come together with industry bodies to develop standardised design facilities at educational institutes, so that other companies can benefit from them.

Vaishnaw also asked companies and their respective industry associations to come up with a definitive plan within six weeks, detailing the inputs on the tools, software, and hardware required to set up indigenous electrical, electronics, and mechanical design centres.

Electronics and semiconductor manufacturing companies in India should also strictly adhere to Six Sigma standards to ensure the products coming out of their plants are of the highest quality and can compete globally, Vaishnaw said.

To ensure there is sufficient uptake of raw materials, electronics and semiconductor components being made in India, the government has also encouraged companies to procure as much as possible from domestic vendors, Vaishnaw said, adding that his ministry, in coordination with other ministries, will organise vendor-buyer meetings wherever such meetings are feasible.

Speaking about the proposed changes to the revised Design Linked Incentive (DLI) scheme, the minister said the government is likely to provide funding support only to companies and startups whose designs are validated by the market and consumers.

“Every DLI project that we will take as part of the restructured scheme will be validated by the market. Beyond the initial support we provide, financing will be in proportion to VC (venture capital) funding. That is the norm globally,” Vaishnaw said.

The minister also said that the four semiconductor chip assembly units of Micron, CG Power, Kaynes, and Tata Electronics would start commercial production before the end of this year.