India's initiative providing incentives for establishing an electronics component supply chain has drawn significant interest, with the Center receiving 249 applications that suggest investments amounting to $13 billion (Rs. 1.15 trillion), as stated by Union IT minister Ashwini Vaishnaw.

Conglomerates and small businesses have proposed total investments that are almost twice the $6.7 billion (Rs. 59,350 crore) anticipated by the Ministry of Electronics & IT (MeitY), according to Vaishnaw, who did not reveal the names of the companies, noting that applications are currently being assessed.

“In addition to investments, we have gotten estimates for electronics production exceeding Rs.10.34 trillion ($116 billion)—compared to our goal of Rs.4.56 trillion ($51 billion). That exceeds twice what we aimed for and will assist in reaching our goal of a $500-billion domestic electronics ecosystem in India by FY31,” says the minister.

Vaishnaw stated during a press conference in New Delhi. He mentioned that from the estimated investments and production, a single company's proposal is to establish a project valued at Rs.22,000 crore ($2.5 billion) by itself.

The Electronics Components Manufacturing Scheme (ECMS), revealed on 28 March, provides incentives that reach up to 10percent of production goals and 50percent of capital expenses for a duration of six years, which includes a one-year development phase. Meity plans to allocate $2.7 billion.

The initial application deadline was 30 September, with companies like electronics supply chain firm Zetwerk and contract manufacturer Optiemus Infracom showing interest in participating in the program.

"We're not disclosing the names of applicants at this moment, as all candidates are currently being assessed by the designated evaluation committee for ECMS," adds minister.

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"The minister added, 'With that in mind, we are expediting the evaluation process, and applications that are fully filled out with all necessary information are receiving special priority."

The most recent electronics component booster is close to 7 times that of Meity's earlier Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (Specs) program, launched in April 2020.

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The latter provided complete incentives totaling $370 million, initially for three years and later extended by an additional year.

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Specs concluded on 31 March last year, attracting 49 investments amounting to $1.6 billion—merely 12percent of the $13.3 billion ECMS pledges over six years.