In works: Rs 10,000 crore sop scheme for chip ancillaries

The centre will launch a revised incentive scheme of up to Rs 10,000 crore to promote the establishment of electronic and semiconductor component plants in the country, top officials told ET. The move is aimed at creating a supporting ecosystem for the mega chip- packaging units being set up by the likes of US-based Micron as well as Indian conglomerate Tata Group and Kaynes Corp that marks the first leg of India’s ambitious journey to emerge as a global hub for electronics manufacturing and design.

The new incentive plan–which is likely to be launched at the start of the next fiscal year– will be an updated version of the current Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). It may be structured to provide funds on a ‘pari-passu’ basis instead of the current reimbursement method, officials said.