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GoI Approved Rs 5,532 Crore Investment for 7 Electronics Component Plant under ECMS

In October 2025, Union Minister Ashwini Vaishnaw, Ministry of Electronics and Information Technology (MeitY) announced that the Government of India (GoI) has approved the 1st trench of 7 projects worth Rs 5,532 crore under the Electronics Components Manufacturing Scheme (ECMS).

  • The projects represent a significant step toward boosting domestic manufacturing of essential components, including multi-layer printed circuit boards (PCBs), Camera Modules, Copper Clad Laminates (CCL), and Polypropylene Films.
  • These projects are expected to lead the production of components worth Rs 36,559 crore and generate over 5,100 direct jobs.

Exam Hints:

  • What? Approval of 1st trench of projects under ECMS
  • Total Projects Approved: 7
  • Investment: Rs 5,532 crore
  • ECM Units in States: TN (5), AP (1) and MP (1)
  • Projects Secured by Companies: 4 by Kaynes Circuits India Private Limited ; each 1 by Ascent Circuits Pvt. Limited; Syrma Strategic Electronics  and SRF Limited
  • Components Covered: HDI PCBs, Multi-layer PCBs, Camera Modules, Copper CCL, and Polypropylene Films
  • About ECMS: March 2025; Budget-Rs 22,919 crore from FY26 to FY32

Key Details:

Total Applications Received: As of September 2025, the GoI has received 249 applications, representing the investment commitments of Rs 1.15 lakh, nearly twice the initial target of Rs 59,350 crore.

State-wise Distribution of Projects: As per MeitY, 7 electronics manufacturing units will be established across 3 states: Tamil Nadu (TN), Andhra Pradesh (AP), and Madhya Pradesh (MP).

  • Among these states, TN leads in electronics components manufacturing, securing 5 out of 7 projects, approved in 1st round of ECMS, with total investment worth Rs 4,271 crore (accounting 77% of total investments approved).
  • Of the 5 projects approved in TN, 4 are secured by Kaynes Circuits India Private Limited, and 1 project was secured by Ascent Circuits Pvt. Limited.
  • While, remaining two projects were secured by SRF Limited in MP and by Syrma Strategic Electronics Pvt. Limited in AP.

Products Details: The newly approved projects will cover key components such as: High-Density Interconnect (HDI)PCBs, Multi-layer PCBs, Camera Modules, CCL, and Polypropylene Films.

Manufacturing Units: As per MeitY, the Kaynes Group will establish 3 manufacturing units in TN i.e. two in Chennai and one in Tuticorin, with combined investment of nearly Rs 3,280 crore.

  • These facilities will produce multi-layer PCBs (worth Rs 4,300 crore), camera module sub-assembly and CCL (Rs 12,630 crore) and HDI PCBs (Rs 6,875 crore).
  • Also, Syrma Strategic Electronics and Ascent Circuits will setup multi-layer PCB units in TN and AP with investments of Rs 765 crore and Rs 991 crore respectively.
  • While, SRF Limited with the investment of Rs 496 crore, will establish a propylene film unit in MP.

Significance: These projects are expected to meet 100% of India’s demand for CCL, 20% of PCBs, and 15% of camera modules.

About ECMS:

Background: In March 2025, the union cabinet chaired by Prime Minister (PM) Narendra Modi had approved ECMS with a total outlay of Rs 22,919 crore for a period of 6 years from Financial Year 2025-26 (FY26) to FY32.

Key Objective: To develop a robust component manufacturing ecosystem by attracting investments (domestic and global) to increase in Domestic Value Addition (DVA) and increase in the global e-trade by integrating its domestic electronic industry with Global Value Chains (GVCs).

Incentive: The scheme offers incentives in 3 forms: turnover-linked incentive, Capital expenditure(capex)-linked incentive and hybrid incentive.

Incentive Deduction: In order to qualify for incentive, companies are required to meet both incremental sales and investment targets annually.

  • In case, companies fail to meet employment generation target then, 1% will be deducted from the eligible incentives.
  • For capital-linked incentives, which are based on eligible capital expenditure incurred within 5 years, if companies fail to meet employment generation target, then, 5% will be deducted.

Other Eligible Criteria: Interested applicants are required to meet minimum revenue thresholds in either Electronic System Design and Manufacturing (ESDM) or pure manufacturing for their selected segments.

  • Also, companies that are applying under the supply chain and capital equipment categories are required to show net worth to at least 50% of the proposed investment, or alternatively submit a board resolution.

About Ministry of Electronics and Information Technology (MeitY):
Union Minister- Ashwini Vaishnaw (Rajya Sabha – Odisha)
Minister of State (MoS)- Jitin Prasada(Constituency- Pilibhit, Uttar Pradesh, UP)