Syrma SGS Tech shares zoom 5%, Kaynes Tech up over 3.5% after govt clears seven projects worth ₹5,500 crore; details to know

Approvals have been granted for four projects from the Kaynes Group and one project each from the Syrma Group, Ascent Circuits of the Amber Group, and SRF Limited.

Shares of Kaynes Technology India were trading 3.50% higher at ₹6,973.50 apiece on the NSE, while Amber Enterprises India was 0.25% down at ₹8,455. SRF Ltd shares were trading 0.41% lower at ₹3,007.10 apiece on the NSE.

Kaynes' four projects at an investment of ₹3,280 crore comprise the production of multi-layer PCBs worth ₹4,300 crore, camera module sub-assemblies worth ₹12,630 crore and HDI (High-Density Interconnect) PCBs worth ₹6,875 crore.

The minister said the production of electronics components from the approved projects is likely to reduce the import bill of around ₹20,000 crore.

"Seven plants under electronics components have been approved. In the coming days, many more projects will be approved. We expect these projects to reduce the import bill by around ₹20,000 crore," Vaishnaw said.

The minister said that proposals for the manufacturing of multi-layer printed circuit boards or motherboard bases, camera modules, copper laminates, and polypropylene films (used in capacitors for consumer electronics) have been approved.

The Ascent Circuits project, entailing a ₹991 crore investment, is likely to produce multi-layer PCBs worth ₹7,847 crore; Syrma Strategic Electronics' ₹765 crore investment would make multi-layer PCBs worth ₹6,933 crore; and SRF Limited's investment proposal of ₹496 crore is estimated to produce polypropylene film worth ₹1,311 crore.

This is the first time camera modules will be made in India without the support of a foreign technology partner. These modules can be used in smartphones, tablets, laptops, CCTV, etc.

Vaishnaw said the PCB projects approved in the initial phase will meet 27% of the total domestic demand and 15% of the camera module requirement.

He said that first copper laminates and polypropylene films used in capacitors will be made in India, and they will meet 100% of the domestic demand.

Electronics and IT Secretary S Krishnan said the approved projects entail a cumulative investment of ₹5,532 crore. These projects are likely to generate employment for 5,195 people.

The Electronics Component Manufacturing Scheme (ECMS) has received investment proposals worth ₹1.15 lakh crore.

The first phase of the scheme closed on September 30, while the window for capital equipment continues to remain open.

About ECMS

ECMS aims to build a strong and self-sustaining ecosystem for electronics component manufacturing in the country. Its focus is on attracting both domestic and global investment across the value chain, promoting higher domestic value addition, and positioning India as a key player in global electronics trade.