Centre clears 31 more ECMS projects; approved investment crosses Rs 69,500 crore

Key points

• He added that production capacities have already surpassed domestic demand in a number of component categories, including anode material (around…
• "The overall target set by the Hon'ble Prime Minister is to achieve $500 billion in electronics production by 2030.
• While another 16 are in advanced stages of construction or machinery installation, minister for Electronics and Information Technology Ashwini Vaishnaw…
• The approved projects are expected to generate around 75,000 direct jobs and strengthen India's electronics supply chain by reducing import…

NEW DELHI: The Ministry of Electronics and Information Technology (MeitY) on Monday approved 31 new projects under the Electronics Component Manufacturing Scheme (ECMS), taking the total number of cleared proposals to 106 and pushing the cumulative approved investment beyond Rs 69,500 crore.

The latest approvals mark India’s first domestic manufacturing of several critical electronic components, including filters, coils and speakers, besides key raw materials such as acetylene black and electrolyte additives.

While another 16 are in advanced stages of construction or machinery installation, minister for Electronics and Information Technology Ashwini Vaishnaw said 38 plants approved under the scheme have already kicked off manufacturing.

The approved projects are expected to generate around 75,000 direct jobs and strengthen India’s electronics supply chain by reducing import dependence throughout multiple component categories.

What happened

Vaishnaw said India’s manufacturing capacity for electronic enclosures now meets almost 100% of domestic demand, making the country “fully Aatmanirbhar” in the segment.

He added that production capacities have already surpassed domestic demand in a number of component categories, including anode material (around 110%), Optical Transceiver-SFP (350%) and relays (200%).

MeitY Secretary S. Krishnan said the scheme has already exceeded both its investment and production targets. “The investment target was Rs 59,350 crore, while the approved investment has already reached Rs 69,548 crore,” he said. Similarly, against the targeted production of Rs 4,56,500 crore, the approved projects are now expected to generate production worth Rs 5,34,101 crore. “We are yet to reach the employment target, but we expect that to increase shortly,” Krishnan added.

While a number of other major projects are nearing commercial production, krishnan said ATL’s lithium-ion cell units at Rewari and Sonipat are already operational.

The details

While Kaynes’ PCB plant near Chennai is expected to commence production within the next month, tata Electronics’ enclosure plant in Hosur is expected to become operational shortly.

Dixon’s display and camera module facility is expected to become operational within four months.

Motherson’s enclosure plant in Kanchipuram and Wipro’s laminate plant are likely to start operations within the next two to three months.

Yuran Technologies, part of the Foxconn Group, is developing an enclosure facility in Kanchipuram that is expected to become operational within six months. Secure Circuits’ PCB facility is also probable to go live within the same period.

Why it matters

According to Krishnan, these include a number of large-ticket investments, with one project involving an investment of nearly Rs 21,000 crore.

“The overall target set by the Hon’ble Prime Minister is to achieve $500 billion in electronics production by 2030. We are confident that we can achieve this target,” Krishnan said.