Tamil Nadu leads with ₹4,271 crore under electronics component scheme

State secures five of seven projects cleared under the Centre's Electronics Component Manufacturing Scheme and aims for 30 per cent of total investments

Giving Tamil Nadu an edge over other states in electronics components manufacturing, the state has secured five out of seven projects approved so far under the first round of the Electronics Component Manufacturing Scheme (ECMS) of the Union Government, worth around Rs 4,271 crore. The state is targeting to attract about 30 per cent of the total investments under the scheme.

 

“Tamil Nadu is the top state in the first round of the Electronics Component Manufacturing Scheme of the Union Government, with five out of the seven approved projects so far. In this round, Tamil Nadu leads with 77 per cent of total investments approved,” said State Industries Minister T R B Rajaa.

 

Out of the total Rs 5,532 crore worth of investments cleared by the Centre so far, Tamil Nadu received Rs 4,271 crore. Of the five projects approved in the state, four are by Mysuru-based Kaynes Circuits India, with a cumulative investment of around Rs 3,280 crore. Another investment of Rs 991 crore has come from Bengaluru-based Ascent Circuits.

 

State targets 30 per cent of total investments under ECMS

 

“Even though the Union’s ECMS scheme had an initial investment target of Rs 59,350 crore, it has received proposals worth over Rs 1 trillion. Eventually, we in Tamil Nadu hope to garner about 30 per cent of the investments under the scheme,” Rajaa added.

 

The other two projects that have received clearance from the Centre include investments of around Rs 496 crore by SRF in Madhya Pradesh and Rs 765 crore by Syrma Strategic Electronics in Andhra Pradesh.

 

“We were the first state to formulate a matching grants scheme for components manufacturing, and the results are here for everyone to see,” Rajaa said.

 

Strong national response reflects industry confidence

 

The scheme, approved by the Cabinet on May 1 this year with a fiscal outlay of Rs 22,919 crore, has received 249 applications with an anticipated investment commitment of Rs 1.15 trillion. The response is nearly double the targeted Rs 59,350 crore. The estimated production of electronics components under the scheme in the next six years will be about Rs 10.35 trillion — 2.2 times the targeted Rs 4.56 trillion worth of production.

 

The scheme is expected to create 1,42,000 direct jobs, well above the initial target of 91,600, and a manifold number of indirect jobs, demonstrating its potential to drive large-scale employment. The application window, initially open for three months from May 1, was later extended till September 30.

 

India’s electronics push gains global traction

 

The Union Government said in a release earlier this month that the robust response reflects India’s growing stature on the global stage and the increasing confidence of the domestic industry, including MSMEs, which have shown strong interest in making the country self-reliant in electronics manufacturing.