ECMS

1. The applicant should be a company registered in Bharat under the Companies Act, 2013 (or the erstwhile Companies Act, 1956) or a Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008.
2. The applicant should be investing in the manufacture of target segment goods in Bharat.
3. The applicant shall meet the threshold criteria regarding investment, sales, and employment as per Annexure 3 of the guidelines.
4. The applicant shall meet the minimum consolidated global Electronics System Design and Manufacturing (ESDM) revenue or manufacturing revenue for the Financial Year.
5. The applicant shall submit separate applications for each target segment product.
6. The applicant shall maintain a net worth greater than or equal to 50% of the proposed investment for target segment D.
7. The applicant shall ensure that Foreign Direct Investment (FDI) is in compliance with the FDI Policy Circular 2020.

Not eligible

1. The applicant shall not consider manufacturing through contract manufacturers as eligible under the scheme.
2. The applicant shall not be eligible for incentives on investments or sales already incentivized under any other Government of Bharat scheme.
3. The applicant shall not include expenditure on land and buildings as an eligible investment.
4. The applicant shall not include expenditure on consumables and raw materials as an eligible investment.

Nature of Incentives by Target Segment

• The scheme offers three types of incentives depending on the target segment

Sl. No.

• A; Target Segment: Sub-Assemblies
• 1; Target Segment: Display module sub-assembly; Nature of Incentive: Turnover Linked Incentive
• 2; Target Segment: Camera module sub-assembly; Nature of Incentive: Turnover Linked Incentive
• B; Target Segment: Bare Components
• 3; Target Segment: Non-Surface mount devices (non-SMD) passive components for electronic applications; Nature of Incentive: Turnover Linked Incentive
• 4; Target Segment: Electro-mechanicals for electronic applications; Nature of Incentive: Turnover Linked Incentive
• 5; Target Segment: Multi-layer Printed Circuit Board (PCB); Nature of Incentive: Turnover Linked Incentive
• 6; Target Segment: Li-ion Cells for digital applications (excluding storage and mobility); Nature of Incentive: Turnover Linked Incentive
• 7; Target Segment: Enclosures for Mobile, IT Hardware products and related devices; Nature of Incentive: Turnover Linked Incentive
• C; Target Segment: Selected Bare Components
• 8; Target Segment: High-density interconnect (HDI)/ Modified semiadditive process (MSAP)/ Flexible PCB; Nature of Incentive: Hybrid Incentive
• 9; Target Segment: SMD passive components; Nature of Incentive: Hybrid Incentive
• D; Target Segment: Supply Chain Ecosystem and Capital Equipment
• 10; Target Segment: Parts/components used in the manufacturing of subassembly (A) and bare components (B) & (C); Nature of Incentive: Capex incentive

1. Employment Incentive: A portion of the incentive (1% for turnover-linked or 5% for Capex) is specifically disbursed upon meeting cumulative incremental employment threshold criteria.
2. Additional Incentive: An additional 2% incentive on incremental sales is provided for Li-ion Cells if cathode active material (CAM) is sourced or manufactured domestically.
3. An additional 1% incentive on incremental sales is provided for Multi-layer PCB if the laminate is sourced or manufactured domestically.

Sl.No.

1. 1; Target Segment: Display module sub-assembly; ESDM Revenue (₹): 250 crore; Manufacturing Revenue (₹): 750 crore
2. 2; Target Segment: Camera module sub-assembly; ESDM Revenue (₹): 250 crore; Manufacturing Revenue (₹): 750 crore
3. 3; Target Segment: Non-SMD passive components; ESDM Revenue (₹): 50 crore; Manufacturing Revenue (₹): 150 crore
4. 4; Target Segment: Electro-mechanicals; ESDM Revenue (₹): 50 crore; Manufacturing Revenue (₹): 150 crore
5. 5; Target Segment: Multi-layer PCB; ESDM Revenue (₹): 50 crore; Manufacturing Revenue (₹): 150 crore
6. 6; Target Segment: Li-ion Cells for digital applications (excluding storage and mobility); ESDM Revenue (₹): 250 crore; Manufacturing Revenue (₹): 750 crore
7. 7; Target Segment: Enclosures for Mobile, IT Hardware products and related devices; ESDM Revenue (₹): 250 crore; Manufacturing Revenue (₹): 750 crore
8. 8; Target Segment: HDI/MSAP/Flexible PCB; ESDM Revenue (₹): 500 crore; Manufacturing Revenue (₹): 1500 crore
9. 9; Target Segment: SMD passive components; ESDM Revenue (₹): 250 crore; Manufacturing Revenue (₹): 750 crore

1. (Incentive rates listed year-wise across 6 years of the incentive period)

For Registration

• 1. Certificate of Incorporation
• 2. Letter of Authorisation (on company letterhead, signed by Director)
• 3. PAN Card of Company

For Application Form Submission

• 4. Self-certified statement of consolidated global ESDM or manufacturing revenue for FY 2023–24
• 5. Investment projections document
• 6. Sales projections document
• 7. Employment plan
• 8. Localisation plan
• 9. Manufacturing process flowchart
• 10. Domestic Value Addition (DVA) estimate
• 11. Tentative capital equipment list
• 12. Expected incentive calculation
• 13. Proof of technological capability (if ESDM revenue threshold not met) — any one of
• In-house capability document, or
• Binding term sheet with technology partner, or

Technology transfer agreement

• 14. Board Resolution committing investment and funding source (only for Segment D applicants if net worth is below 50% of proposed investment)

For Annual Incentive Claim

• 15. Audited financial statements
• 16. Employment records
• 17. Investment proof (invoices, purchase orders of plant & machinery)