Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

The Ministry of Electronics and Information Technology (MeitY), Government of India, operates the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS). The scheme exists to counter the cost disadvantage faced by domestic producers of electronic components and semiconductors, and in doing so to reinforce the country's electronics manufacturing ecosystem. It sits within the framework of the National Policy on Electronics 2019 (NPE 2019), as well as the Government's "Make in India" and "Digital India" programmes.

Under SPECS, a financial incentive amounting to 25% of eligible capital expenditure is extended on a reimbursement basis. Any legal entity registered in India may apply, provided it invests in critical areas — eligible electronic components, semiconductor/display fabrication units, Assembly, Testing, Marking and Packaging (ATMP) units, specialised sub-assemblies, and capital goods required to manufacture these items. Both greenfield manufacturing units and existing units undertaking expansion, modernisation or diversification are covered.

MeitY delivers the scheme through a Nodal Agency known as the Project Management Agency (PMA), presently IFCI Ltd. The PMA's responsibilities span receiving applications, carrying out appraisals, issuing acknowledgements, verifying claims and facilitating disbursement of incentives. Appraisals take place on a continuous basis, after which eligible proposals go before an Executive Committee (EC) constituted by MeitY and chaired by a Joint Secretary-rank officer, which gives the final recommendation.

1. **Visit the portal:** Go to the official SPECS portal at https://specs.ifciltd.com. 2. **Register or log in:** Create an account with your Permanent Account Number (PAN) as the username, set a password, and fill in the CAPTCHA. 3. **Complete the application form:** The online form has three sections — Applicant Details (company structure, financials, credit history), Proposal Details (eligible goods, investment size, financial closure, projections, market research, regulatory treatment), and Application Fee Details. 4. **Pay the application fee:** Make the non-refundable payment electronically. The amount depends on project size, ranging from ₹10,000 for projects below ₹25 crore to ₹1.25 lakh for projects of ₹10,000 crore and above. 5. **Submit the application:** Upload all required documents and submit through the portal. A unique Application ID is issued once submission succeeds. 6. **Completeness check:** IFCI Ltd. (PMA) reviews the application for completeness within 15 working days. If anything is missing, you get a further 15 working days to fix it; failing that, the application is closed. 7. **Acknowledgement:** Once the completeness criteria are met, the PMA issues an Acknowledgement carrying your Application ID. The 5-year investment window starts from this date. 8. **Appraisal:** The PMA carries out a detailed appraisal and may ask for additional information. 9. **Executive Committee review:** The PMA places your application before the MeitY-constituted Executive Committee for its recommendation. 10. **Approval Letter:** Where a recommendation is made, the PMA issues an Approval Letter. 11. **Incur expenditure:** Eligible capital expenditure must be incurred within 5 years of the acknowledgement date. 12. **Commence production:** Commercial production must start before any incentive can be claimed. 13. **Submit claims:** Log in to the SPECS portal and file incentive claims every 6 months, on a cash basis. 14. **Claim verification:** The PMA verifies claims through documents and site visits, with physical verification covering at least 30%. 15. **Sanction Letter:** The PMA issues a Sanction Letter for the approved claim. 16. **Submit undertakings:** Furnish the Integrity Compliance Undertaking, Indemnity Bond, and any other documents sought. 17. **Disbursement:** Once all formalities are complete, the PMA disburses the incentive.

The Project Management Agency (PMA) appraises applications on a rolling basis. Those found eligible go before an Executive Committee (EC) set up by MeitY and headed by an officer of Joint Secretary rank, which examines each proposal and recommends it for approval, rejection or modification.

In the case of claims, the PMA checks the eligible capital expenditure against supporting documents and site visits, physically verifying no less than 30% of the expenditure items. Only after this does it issue a Sanction Letter and release the incentive.