The electronic manufacturing industry in India suffers from a lack of funding and growth prospects, which contradicts the country’s huge demand for electronic goods. Hence, the country has limited infrastructure to meet the electronic needs of the people. This lack of reliable and adequate infrastructure can lead to poor investment in the electronics manufacturing industry. To increase investment in this industry, the Indian Government approved the Modified Electronics Manufacturing Clusters Scheme.
This Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme aims to provide financial backing to the evolution of EMC (Electronics Manufacturing Cluster). Financial aid for setting up EMC can usually encourage the creation of more manufacturing units. Also, developing the proper manufacturing infrastructure can draw massive investments in this sector of ESDM (Electronics System Design and Manufacturing).
Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme
This Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme will fortify the linkage between international and domestic markets by consolidating suppliers, strengthening supply chain responsiveness, decreasing time-to-market, etc.
The scheme provides financial assistance for setting up EMC projects and Common Facility Centres (CFCs) in the country. Applications are accepted until 31 March 2024 (later extension), and funds are disbursed to approved projects until March 2028.
PIA (Project Implementing Agency) shall be made an application which can be State Government or SIA (State Implementing Agency) or CPSU (Central Public Sector Unit) or SPSU (State Public Sector Unit) or ICDC (Industrial Corridor Development Corporation) such as DMICDC etc. and Joint Ventures of such agencies with Anchor units/Industrial Park Developers.
Additionally, under the EMC (2.0) scheme, applications received through the PMA (Project Management Agency) will be considered by the PRC (Project Review Committee), which will recommend to the PMA whether the project should be approved or rejected.
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All About Electronics Manufacturing Clusters (EMC 2.0) Scheme
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Overview of EMC (2.0) Scheme
The EMC 2.0 scheme is a scheme for developing world-class infrastructure with amenities and common facilities through EMCs (Electronics Manufacturing Clusters). Also, the EMC (2.0) scheme provides financial assistance for the setting up of CFCs and Electronics Manufacturing Clusters.
· Aim Of the EMC (2.0) Scheme
The EMC (2.0) Scheme aims to fund the development of the country’s electronic manufacturing clusters. The funds will be given to these projects: Greenfield EMC and Brownfield EMC. Greenfield EMC stands for the project plan for undeveloped geographical regions, and the land requires the development of infra as well as amenities. Also, the second one, Brownfield EMC, stands for a geographical space with significant numbers of ESDM units. The funds will be allocated for such projects specifically to contribute to the growth of infrastructure.
· EMC Testing
EMC testing is a process that evaluates the ability of electronic & electrical products to function as intended in the presence of electromagnetic fields, and it guarantees that it does not generate harmful electromagnetic emissions. The main goal of EMC testing is to verify that the product meets EMC industry standards or not for the EMC (Electromagnetic Compatibility).
Important Characteristics of the EMC 2.0
These are some important characteristics and properties of EMC 2.0:
- The Electronics Manufacturing (EMC 2.0) Scheme aligns with the NPE (National Policy for Electronics), 2019, to establish India as a global mobile and component manufacturing hub.
- The scheme would support the setting up of EMCs (Electronics Manufacturing Clusters)
- The main focus is developing amenities, basic infrastructure, and other common facilities for the ESDESDM sector. The scheme would support the setting up of CFCs (Common Facility Centres).
- They would be set up in the area where many existing manufacturing units are located.
- The major focus is upgrading the technical infrastructure and providing common facilities for Industrial Areas/Parks/industrial corridors and units in EMCs.
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Benefits of the EMC 2.0 Scheme
These are the anticipated benefits of the EMC 2.0 scheme:
- The EMC (2.0) scheme is a significant move in the direction of promoting the central government’s vision of a self-reliant India.
- The focus is to increase the growth of electronics manufacturing by developing good infrastructure.
- Local production will assist the nation manage the electronic requirements of the public.
- The infrastructural growth will open the door for investments in the ESDM segment and promote local electronic industry growth.
- The anticipated merits of the EMC 2.0 scheme also entail promoting the setting up of newer and better manufacturing units.
- Drive innovation and catalyze the economic growth of the country.
Key Instructions for applying for the EMC 2.0 scheme
The key instructions while applying for the EMC 2.0 scheme:
- Applicants should first carefully review the guidelines of EMC 2.0 before filling out the application.
- The application shall be aptly signed by the authorized signatory of the PIA (Project Implementation Agency).
- PIA is counselled to follow the format provided in the Guidelines of EMC 2.0.
- PIA is requested to give all the necessary information and enclose the supporting documents and their application.
- Additionally, the application should be submitted electronically to the Project Management Agency (PMA) through the scheme’s website, along with one physical copy.
- The application is divided into the following sections:
– Details of Applicant
– Funding Details / Financial Closure
– Details of Projects - If any document needs to be submitted and the application is available on the government website, the complete link may be provided where this document can be viewed. The responsibility for the integrity of contents rests with the PIA.
Electronic Manufacturing Business in India
There are many reasons for starting an electronic manufacturing business in India. It’s a lucrative industry. Electronic manufacturing companies’ profitability stems from extensive use and increasing demand for electronic devices, low production costs compared to other countries, and subsequent high-profit margins.
In addition, reasons such as lower capital investment requirements, the ability to manage and get involved in every aspect of the business processes, and a steady monthly income encourage people to start an electronic business in India. BIS certification is a mandatory requirement for electronic businesses in India. As a manufacturer, you must keep this point in mind.
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Various Schemes for Electronics Manufacturing
Here are the schemes for Electronics manufacturing:
- PLI for Large Scale Electronics Manufacturing
- PLI for IT Hardware
- SPECS (Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors)
- Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme
Conclusion
The Electronics Manufacturing Clusters (EMC 2.0) Scheme aims to increase investment in the electronics manufacturing industry. However, this can only be achieved by significantly developing its infrastructure. The industry lacks the proper infrastructure for which the Government provides financial aid projects.
These types of projects are classified as Brownfield and Greenfield based on their level of development and geographical area. The key points of the EMC 2.0 scheme are to support EMC projects financially and attract investments.
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Frequently Asked Questions
What is the EMC 2.0 scheme?
The EMC 2.0 scheme aims to develop world-class infrastructure, amenities, and common facilities through Electronic Manufacturing Clusters (EMCs).
What is the benefit of EMC Testing?
EMC testing helps minimize the possibility that your device's conducted or radiated emission will interfere with the other electronic products in its vicinity. It also helps guarantee that any emission from the device is below the relevant limits defined for that type of device.
How will the SPV be formed?
SPV is a separate company or society. Commonly, it is a legal entity registered to implement the EMC 2.0 scheme. Financial institutions, government at the state or local level, and private sector companies or industries within the EMC can promote these SPVs. SPVs will include a research institution to promote the proper linkage of academic and industry-related matters.
Will the scheme provide financial assistance to the project through equity?
No, the Modified Electronics Manufacturing Clusters scheme aims to provide grants-in-aid to EMC projects. The financial support will not be equity.
What should the project proposal include?
The project proposal should be submitted to the SCC. It should include the infrastructural units and facilities to be developed in the EMC, surveys, data, and figures to support the details, and the growth feasibility of the proposed EMC.
Why is company registration necessary?
Company Registration is essential because when you register your company, you can create a legal entity that is separate from its owners. It means your assets are protected from legal issues or business debts. Without a company registration, you would be personally liable for lawsuits or business-related debts.
Read our blog: The Process of Registering Flour Manufacturing Company in India!
