Next ECMS tranche likely in August, to target rare earths, components

The government may announce the next tranche of successful beneficiaries under the Electronic Component Manufacturing Scheme (ECMS) by next month, according to officials.

Units manufacturing items needed for India in the upstream supply chain ecosystem and high-precision capital equipment will be in focus, they said. These include laminates, metallised films for capacitors, aluminium extrusions, anode materials and rare earth permanent magnets from rareearth oxides.

The first investments in domestic production of surface mount device passives and flexible printed circuit boards, as well antennas, heat sinks, transducers, inductors and metal film resistors have already been approved under the ECMS. Officials said these will be expanded.


Firms committing to a minimum level of investment in designing capabilities will also be prioritised, they added.

It comes after electronics and information technology minister Ashwini Vaishnaw cautioned that ECMS participants not investing in designing capabilities will be “weeded out” from the scheme and disbursals for the Rs 40,000 crore scheme stopped by changing its guidelines.