In order to boost electronics manufacturing ecosystem in the country, the Ministry of Electronics and IT has proposed two schemes such as credit guarantee fund (CGF) scheme and interest subvention scheme (ISS) under the new policy in works.
The Ministry has a made proposal to provide credit guarantee on term loans for projects up to Rs 100 crore per borrowing unit and this will not require any collateral security and third party guarantee, for setting up a new electronics manufacturing unit or considerable expansion of an existing electronics manufacturing plant. Besides, the cover will vary on case to case basis, depending upon investments.
Under the proposal, ISS scheme will promote electronics manufacturing by partially reimbursing the interest of the term loan availed by the industry for plant and machinery. The scheme will include all stages of the value chain starting from raw-materials. It will also include assembly, testing and packaging. Electronics Manufacturing Services (EMS) companies like Foxconn, Flex etc will also be eligible under the scheme.