Back to Schemes
Business & Entrepreneurship

Electronic Manufacturing Clusters (EMC) Scheme: Greenfield Electronic Manufacturing Clusters

The aims to promote electronics manufacturing by providing financial assistance for cluster-based infrastructure. Through this scheme, infrastructure support is provided to electronics manufacturing units in identified clusters.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

Financial Assistance: | - For Greenfield EMCs: | - Financial assistance up to 50% of the project cost. | - Ceiling of ₹50,00,00,000/- for every 100 acres (pro-rata for larger areas). | - Government grant in: | - Processing area: up to 50% of the project cost. | - Non-processing area: up to 20% of project cost. | Infrastructure Support: | - Basic infrastructure (boundary wall, internal roads, drainage, lighting). | - Essential services (water treatment, electricity, waste management, warehousing). | - Support services (R&D centres, training facilities, IT infrastructure). | Administrative Support: | - Administrative expenses up to 3% of assistance (only for SPV). | Mode of Disbursement: | - Grant-in-aid is released in installments through escrow account. | - Initial 20% released as advance; subsequent installments based on utilisation and contribution.

Who can apply

The applicant should be a legal entity such as an individual, company, society, industry association, financial institution, research and development (R&D) institution, or government agency.; The applicant should form a Special Purpose Vehicle (SPV) for implementation.; The applicant should submit a preliminary application along with a feasibility study and project details.; The applicant should ensure that the committed investment is at least 4 times the assistance sought.; The applicant should ensure that at least 75% of the investment is in electronics manufacturing units.; The applicant should develop a new Electronics Manufacturing Cluster (EMC).; The applicant should procure land for the project.; The applicant should achieve financial closure before submitting the final application.; The applicant should submit a Detailed Project Report (DPR).

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is a Greenfield Electronics Manufacturing Cluster (EMC)?

A Greenfield EMC refers to a new cluster developed from scratch with basic infrastructure, common facilities, and amenities to support electronics manufacturing units.

Who can apply for setting up a Greenfield EMC?

The applicant should be a legal entity such as an individual, company, society, industry association, financial institution, research and development (R&D) institution, or government agency.

Is it mandatory to form a Special Purpose Vehicle (SPV)?

Yes, the applicant should form a Special Purpose Vehicle (SPV) for the implementation of the Greenfield EMC project.

What is the financial assistance provided under Greenfield EMCs?

Financial assistance is provided up to 50% of the project cost, subject to a ceiling of ₹50,00,00,000/- for every 100 acres (on a pro-rata basis).

What type of infrastructure is supported under this component?

Support is provided for infrastructure such as internal roads, power supply, water supply, drainage systems, logistics, warehousing, testing facilities, and R&D centres.

Is land procurement required for Greenfield EMCs?

Yes, the applicant should procure land for developing the new Electronics Manufacturing Cluster.

What is the minimum investment requirement?

The applicant should ensure that the committed investment by units is at least 4 times the financial assistance sought.

Is there any requirement regarding the type of units in the cluster?

Yes, at least 75% of the investment in the cluster should be in electronics manufacturing units.

What is the application process for Greenfield EMCs?

The applicant should submit a Preliminary Application along with a feasibility study, obtain in-principle approval, complete prerequisites such as land acquisition and financial closure, and then submit the Detailed Project Report (DPR) with the Final Application.

When should the Detailed Project Report (DPR) be submitted?

The DPR should be submitted after obtaining in-principle approval and before submitting the final application.

Is financial closure required before final approval?

Yes, the applicant should achieve financial closure before submitting the final application.

How is the financial assistance disbursed?

The assistance is released in phases through an escrow account, based on project progress and utilization of funds.