SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units
A MeitY subsidy that reimburses 25% of eligible capital expenditure, from ₹1.25 crore up to ₹250 crore, for units manufacturing electronic components and semiconductors in India. Applications are accepted on a rolling basis.
- Funding amount
- ₹1.3Cr – ₹250Cr (subsidy)
- Funding type
- Subsidy
- Provider
- Ministry of Electronics and Information Technology (MeitY) (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
SPECS is a central government scheme run by the Ministry of Electronics and Information Technology (MeitY) to bring down the cost of building electronics manufacturing capacity in India. It is anchored in the National Policy on Electronics 2019 and backs the broader Make in India and Digital India agenda, with the specific goal of removing the cost disability that domestic makers of electronic components and semiconductors operate under.
At its core, the scheme is a capital expenditure reimbursement. Approved units receive 25% of their eligible capital expenditure back, an amount that works out between ₹1.25 crore and ₹250 crore depending on how large the project is. The reimbursement can be applied to plant, machinery and equipment, utilities such as captive power, clean rooms and IT/ITES infrastructure, R&D spend including IPR and technology software, and transfer of technology costs.
The scope of manufacturing covered is wide: eligible electronic components, semiconductor and display fabrication units, Assembly, Testing, Marking and Packaging (ATMP) units, specialised sub-assemblies, and the capital goods required to produce these items. Both greenfield units and existing manufacturers going in for expansion, modernisation or diversification can apply.
MeitY implements SPECS through a Nodal Agency designated as the Project Management Agency (PMA), which is currently IFCI Ltd. The PMA receives applications, conducts appraisals, issues acknowledgements, verifies claims and handles disbursement. There is no closing date to chase — proposals are appraised continuously and eligible ones are placed before a MeitY-constituted Executive Committee, chaired by a Joint Secretary-rank officer, for a final recommendation.
Highlights
- 25% of eligible capital expenditure reimbursed by MeitY
- Incentive ranges from ₹1.25 crore up to ₹250 crore
- Open to new units as well as expansion, modernisation or diversification
- Covers electronic components, semiconductor/display fab, ATMP and specialised sub-assemblies
- Rolling applications with no fixed deadline
- Appraised by PMA (IFCI Ltd) and recommended by MeitY's Executive Committee
Who can apply
Any legal entity registered in India can apply, as long as the project is a manufacturing investment in goods that fall under the SPECS guidelines. The recognised entity structures are:
- Private Limited Company
- Public Limited Company
- Sole Proprietorship
- Partnership
- Limited Liability Partnership
The investment may be a completely new unit, or capacity expansion, modernisation or diversification at an existing one.
Two conditions carry the most weight:
- Minimum investment threshold: the proposed capital expenditure has to meet or exceed the threshold fixed for the relevant product category. Across categories, these thresholds run from ₹5 crore at the lower end to ₹10,000 crore at the top.
- Land and financial closure: applicants must produce land documents — a registered sale deed, a rent or lease agreement of at least 10 years, or another suitable confirmation that land is available — together with evidence that the entire project investment is financially tied up. Acceptable proof includes a Board Resolution, sanction letters from banks or financial institutions, or binding commitments from equity or loan providers.
SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The support on offer is a reimbursement of 25% of eligible capital expenditure, paid to approved manufacturing units. It exists to offset the cost disadvantage Indian component and semiconductor manufacturers face, and to strengthen the country's electronics manufacturing ecosystem.
Eligible capital expenditure is fairly broad and takes in:
- Plant, machinery and equipment
- Associated utilities, including captive power, clean rooms and IT/ITES infrastructure
- Research and Development costs, including IPR and technology software
- Transfer of Technology (ToT) expenses
On the numbers, the incentive begins at ₹1.25 crore for a project with ₹5 crore of capital expenditure, and reaches ₹250 crore for a project with ₹1,000 crore of capital expenditure. The same support is available whether you are setting up a new manufacturing unit or expanding or modernising an existing facility.
Applications are taken on a rolling basis, so there is no deadline pressure — but the acknowledgement date matters, because it starts the clock on your investment window.
About the provider
SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units is offered by Ministry of Electronics and Information Technology (MeitY), a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.
How to apply
Applications are submitted on the . Confirm the current deadline and document checklist there before you start.
Selection process
SPECS runs a continuous appraisal rather than a cohort or batch cycle. Once an application reaches the Project Management Agency (PMA) — currently IFCI Ltd — it moves through the following path:
- Completeness check: the PMA has 15 working days to check whether the application is complete. If something is missing, the applicant gets a further 15 working days to supply it, failing which the application is closed.
- Acknowledgement: once the completeness criteria are met, the PMA issues an Acknowledgement carrying the Application ID. This date starts the 5-year investment window.
- Appraisal: the PMA appraises the proposal in detail and may ask for additional information.
- Executive Committee review: the application is placed before MeitY's Executive Committee, chaired by a Joint Secretary-rank officer, which recommends approval, rejection or modification.
- Approval Letter: if the proposal is recommended, the PMA issues an Approval Letter.
Claims follow their own verification route. Incentives can only be claimed once commercial production has begun, and claims are submitted on the portal every six months on a cash basis. The PMA verifies each claim through documentation and site visits, physically verifying at least 30% of the expenditure items, before issuing a Sanction Letter. The applicant then files an Integrity Compliance Undertaking, an Indemnity Bond and any other required documents, after which the PMA disburses the incentive.
Documents you’ll need
Before you apply to SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Who this is best for
SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units is best suited for startups in India seeking non-dilutive funding of ₹1.3Cr – ₹250Cr. If that describes your startup, review the eligibility criteria above before applying.
Frequently asked questions
What exactly is the SPECS scheme and who runs it?
SPECS stands for the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors. It is a central government subsidy rolled out by the Ministry of Electronics and Information Technology (MeitY), aligned with the National Policy on Electronics 2019, Make in India and Digital India. Its purpose is to offset the cost disability that Indian manufacturers of electronic components and semiconductors face, and to deepen the domestic electronics manufacturing ecosystem. MeitY implements it through a Nodal Agency called the Project Management Agency (PMA), which is currently IFCI Ltd.
How much funding does SPECS provide?
Approved units get back 25% of their eligible capital expenditure on a reimbursement basis. In absolute terms the incentive starts at ₹1.25 crore, which corresponds to a project with ₹5 crore of capital expenditure, and can go up to ₹250 crore, which corresponds to a project with ₹1,000 crore of capital expenditure.
Who is eligible to apply for SPECS?
Any legal entity registered in India that proposes to invest in manufacturing eligible electronic goods. That includes Private Limited Companies, Public Limited Companies, Sole Proprietorships, Partnerships and Limited Liability Partnerships. The investment can be a new unit, or expansion, modernisation or diversification of an existing unit, and the proposed capital expenditure must meet the minimum investment threshold for the relevant product category.
Does SPECS take equity or a stake in my company?
No. SPECS is a subsidy, not an investment — the incentive is paid out as a reimbursement of eligible capital expenditure, so there is no equity dilution and no stake taken in your business. The application fee is the only payment you make.
Is there an application deadline?
There is no fixed deadline. Applications are appraised on an ongoing, rolling basis throughout the year. Note, though, that once the PMA issues an Acknowledgement, you have a 5-year window from that date to incur the eligible capital expenditure.
Is there a minimum investment requirement?
Yes. The scheme sets minimum investment thresholds for different categories of eligible goods, ranging from ₹5 crore of capital expenditure at the lower end to ₹10,000 crore at the upper end. Your proposed capital expenditure must meet or exceed the threshold that applies to your product category.
What expenses count as eligible capital expenditure?
Eligible capital expenditure covers plant, machinery and equipment; associated utilities such as captive power, clean rooms and IT/ITES infrastructure; Research and Development costs, including IPR and technology software; and Transfer of Technology expenses. A 25% reimbursement is calculated on this eligible spend.
What documents do I need to apply?
You will need land documents — a registered sale deed, a rent or lease agreement for at least 10 years, or another suitable confirmation that land is available — plus evidence of financial closure for the full project investment, such as a Board Resolution, sanction letters from banks or financial institutions, or binding commitments from equity or loan providers. At the claim stage you also submit an Integrity Compliance Undertaking, an Indemnity Bond and any other documents the PMA asks for.
How do I apply, and what does it cost?
Applications are made online at the SPECS portal (https://specs.ifciltd.com). You register using your Permanent Account Number (PAN) as the username, create a password and complete a CAPTCHA, then fill in the online form covering applicant details, proposal details and fee details. A non-refundable application fee is paid electronically; it is scaled to project size, from ₹10,000 for projects below ₹25 crore up to ₹1.25 lakh for projects of ₹10,000 crore and above. On submission you receive a unique Application ID.
How and when are the incentives actually paid out?
Commercial production must begin before you can claim anything. Claims are then filed on the SPECS portal every six months, on a cash basis. The PMA verifies each claim through documentation and site visits, physically verifying at least 30% of the expenditure items, then issues a Sanction Letter. After the undertakings are submitted and formalities completed, the PMA disburses the incentive.
Is DPIIT recognition required for SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units, though having it can strengthen your application and unlock other benefits.
More funding from Ministry of Electronics and Information Technology (MeitY)
Ministry of Electronics and Information Technology (MeitY) runs 6 other programs listed on startupfunds — compare them before you decide where to apply.
Alternatives to SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units
Not sure SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units is the right fit, or already applied? These are other subsidies open to Indian startups that founders shortlist alongside it.
Questions from founders
Ask anything about eligibility, documents or the process — answered by the community.
No questions yet — be the first to ask.