Electronics Component Manufacturing Scheme gets UP boost, state to match Centre's 100% incentive

The Uttar Pradesh government will match 100% of the incentive approved by the Centre for electronics component manufacturers investing in the state under the Electronics Components Manufacturing Scheme (ECMS), a senior state minister said on Thursday.

Uttar Pradesh Minister for Electronics and IT Sunil Kumar Sharma said the state has not imposed any cap on the incentive amount and would provide support equivalent to the incentive cleared by the Centre for eligible projects.

“There is a policy on electronic components. We have just announced it. There are around 20 specific components. We will subsidise 100%. The Indian government will give up to 50% incentive on the capital. And as much as the Indian government, the Uttar Pradesh government will also give,” Sharma told reporters.

The Electronics Components Manufacturing Scheme was notified on April 8, 2025, with an initial outlay of ₹22,919 crore.

In the Union Budget for 2026-27, the Centre increased the outlay for the ECMS to ₹40,000 crore.

The scheme has a six-year tenure with an optional one-year gestation period and aims to create a self-sustaining ecosystem for electronics component manufacturing in the country.

The scheme focuses on attracting domestic and global investments across the electronics value chain and increasing domestic value addition by promoting production of key components, sub-assemblies and raw materials within India.

According to official data, the government has so far approved 75 applications under the scheme involving expected investments of ₹61,671 crore and direct employment generation potential for 65,040 people.

Sharma said he was yet to come across any application under the ECMS from Uttar Pradesh but maintained that the state government had cleared all pending incentives promised under various schemes.

“We have cleared the entire amount that was to be paid for the incentives. There may be pendency on the applicant side but there is none with the state government,” he said.

The minister also said Uttar Pradesh is extending additional incentives for semiconductor projects.

“The Centre is offering up to 50% subsidy on total capital investment for semiconductors. We are offering 60% of the amount approved by the Centre. With this, an investor investing in UP can get up to 80% of the incentive on their total investment. Besides this, we are offering a waiver on land registration fee and other facilities as well,” Sharma said.