Govt to start accepting ECMS applications on rolling basis from July 2027

Government plans to accept ECMS applications on a rolling basis from July 2027 to avoid missing capable companies due to application deadlines

The government is likely to start accepting new applications for the Electronics Component Manufacturing Scheme (ECMS) on a rolling basis from July 2027, once all applications submitted so far have been vetted and accepted or rejected, a senior government official has said. 

The idea is to ensure that capable companies wanting to set up new greenfield or brownfield operations are not declared ineligible because they miss the deadline to submit a completed ECMS application, the official added. 

“There are several aspects that companies have to lock in before they are eligible for government incentives under schemes such as ECMS. For example, they have to be ready with the technology to be used at the proposed unit for the final product, either themselves or by signing a joint-venture partnership with a technology partner. Then there are land, water, electricity, and labour agreements,” the official said, adding that putting these in place takes time. 

For example, a potential applicant under the ECMS scheme is often in talks in up to five states simultaneously regarding land, water, electricity, and labour agreements, weighing the incentives and tax breaks on offer, another official said.

Once these details are finalised, agreements have to be signed, and they are vetted by both sides, which can take anywhere between 60 and 90 days, the official said. 

“Even as all these processes are going on at the state level, there is a clock ticking at the central level as well. Sometimes, we also miss out on good companies due to their inability to complete an application in all aspects before or on time,” one of the officials quoted above said. 

Notified on April 8, 2025, the ECMS was originally proposed to be rolled out with a budget of ₹22,919 crore. In the Union Budget for 2026-27, the outlay for the scheme was nearly doubled to ₹40,000 crore. 

Since 2025, when the Union Cabinet approved the scheme and the Ministry of Electronics and Information Technology rolled it out, 118 applications have been approved to date. 

The government has received roughly 250 applications under the ECMS scheme, with cumulative investment proposals worth ₹1.15 trillion, Union Electronics and Information Technology Minister Ashwini Vaishnaw said in October last year.

Against a production target of ₹4.56 trillion expected by the government under the ECMS scheme, the IT Ministry had received production target assurances of over ₹10 trillion from these 250-odd applicants, he had said. 

Deepening the value chain

 

*Notified on April 8, 2025, the ECMS was originally proposed to be rolled out with a budget of ₹22,919 cr

 

*In the Union Budget for 2026-27, the outlay for the scheme was nearly doubled to ₹40,000 cr

 

*Since 2025, 118 applications have been approved to date

 

*Govt has received roughly 250 applications under the ECMS scheme, with cumulative investment proposals worth ₹1.15 trn