Electronic Manufacturing Clusters (EMC) scheme offers financial support to set up Greenfield electronics manufacturing clusters with strong infrastructure for the electronics industry across India. As of August 2026, the scheme has been modified into the Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme, which now runs in its place.
Ministry of Electronics and Information Technology (MeitY) launched the original EMC scheme in 2012 and later modified it into EMC 2.0, notified on 1 April 2020. The modified scheme supports creation of world-class infrastructure, common facilities and amenities for electronics manufacturing, including Ready Built Factory (RBF) sheds and plug and play facilities to attract global investment.
Electronic Manufacturing Clusters (EMC) Scheme: Greenfield Electronic Manufacturing Clusters - Introduction
EMC 2.0 is the current version of the EMC scheme and it runs for an implementation period of 8 years, from April 2020 up to March 2028. Under this scheme, applications were received up to 31 March 2024, while the disbursement of funds continues up to 31 March 2028. So the scheme is now in its payment and project execution phase rather than accepting fresh applications.
By creating a structured ecosystem, the scheme aims to attract investment, create jobs and raise government tax revenue. It supports both processing and non-processing areas within these clusters to make business operations easier for electronics manufacturers.
Key Information
| Scheme Name | Electronic Manufacturing Clusters (EMC) Scheme: Greenfield Electronic Manufacturing Clusters |
|---|---|
| Current Version | Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme |
| Level | Central |
| Scheme For | Infra |
| Beneficiary States | All |
| Category | Business and Entrepreneurship |
| Target Beneficiaries | Business Entity |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Ministry | Ministry of Electronics and Information Technology |
| Implementation Period | April 2020 to March 2028 |
| Application Window | Closed on 31 March 2024 |
Benefits
EMC 2.0 provides financial help to build and upgrade electronics manufacturing clusters. The support is given as a grant that covers a part of the project cost, depending on the type of area being developed.
- Financial support is provided up to 50% of the project cost for Greenfield EMCs, with a ceiling of ₹50,00,00,000 for every 100 acres, calculated on a pro-rata basis for larger areas.
- Processing area gets up to 50% of the project cost, while the non-processing area gets up to 20% of the project cost.
- The scheme covers basic infrastructure like boundary walls, internal roads, drainage, lighting and essential services such as water, power, waste management and warehousing.
- Administrative expenses up to 3% of the total support are given to the Special Purpose Vehicle (SPV) that runs the project.
- Grant-in-aid is released in installments through an escrow account, starting with a 20% advance payment.
Eligibility
Any legal entity that can set up a new Greenfield electronics manufacturing cluster can apply under the scheme. The applicant has to meet the investment and land requirements laid down in the scheme rules.
- Applicants must be a legal entity, including individuals, companies, societies, industry associations, financial institutions, R&D institutions or government agencies.
- A Special Purpose Vehicle (SPV) must be formed for the implementation of the project.
- The project must involve developing a new Greenfield Electronics Manufacturing Cluster.
- Applicants must secure the land for the project.
- Committed investment in the cluster must be at least 4 times the financial support sought.
- At least 75% of the investment must be dedicated to electronics manufacturing units.
- Financial closure must be achieved before the final application is submitted.
Application Process
The application window under EMC 2.0 closed on 31 March 2024, so no fresh applications are being accepted now. The process that applicants followed is given below for reference.
STEP 1 - Visit the official EMC 2.0 portal at emc2.stpi.in and the Ministry of Electronics and Information Technology website to download the application form and scheme guidelines.
STEP 2 - Form a Special Purpose Vehicle (SPV) for the project and prepare the feasibility study along with the required project details.
STEP 3 - Submit the application with the feasibility study, SPV formation documents and the required fee through the prescribed procedure.
STEP 4 - After receiving in-principle approval, finalize land acquisition and achieve financial closure.
STEP 5 - Submit the Detailed Project Report (DPR) along with the final application within the given time.
STEP 6 - The Steering Committee for Clusters (SCC) reviews the application for final approval, after which funds are released in phases through the escrow account.
Documents
Applicants had to submit a set of documents along with their application to prove their identity, financial strength and land ownership. The main documents are listed below.
- Memorandum and Articles of Association or Registration Documents
- PAN Card and tax registration certificates
- Annual reports and financial statements for the last 3 years
- Shareholding pattern certificate
- Promoter details and PAN copies
- Land ownership or lease documents
- Feasibility study report
- Detailed Project Report (DPR)
- Bank sanction letter and financial closure documents
- SPV incorporation documents
- Application fee payment details
References
FAQ's
What is a Greenfield Electronics Manufacturing Cluster (EMC)?
It is a new cluster developed from the starting stage with dedicated infrastructure, common facilities and amenities to support electronics manufacturing.
Is the formation of a Special Purpose Vehicle (SPV) mandatory?
Yes, forming an SPV is a requirement for project implementation under this scheme.
What is the upper limit of financial support?
Financial support is capped at ₹50,00,00,000 for every 100 acres of land, with pro-rata adjustments for larger areas.
Are there specific investment requirements for the cluster?
Yes, committed investment in the cluster must be at least four times the financial support sought, with 75% of that investment strictly in electronics manufacturing units.
Is the scheme still accepting applications in 2026?
No, the application window under EMC 2.0 closed on 31 March 2024. The scheme is now in its disbursement phase, which runs up to 31 March 2028.
How is the scheme fund paid out?
Funds are released in phases through an escrow account based on project milestones and the use of previous installments.