SPECS — 25% Capex Reimbursement for Electronics & Semiconductor Units — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.