The Electronics Manufacturing Clusters scheme, which will provide financial incentives to technology companies, is expected to be notified in September, Telecom and IT Minister Kapil Sibal said on Friday.

"Hopefully by September that (notification of EMC) will also be done," Sibal told reporters in Delhi while releasing special edition of 'Yojana' magazine on IT and Electronics.

To boost local manufacturing of electronic products, the government will provide financial support of up to Rs 50 crore for setting up a cluster that will house complete eco-system required for development of specific kind of electronics products.

Under the EMC scheme, approved by the Cabinet, the government will provide aid to special purpose vehicles for setting up such clusters.

The Department of Electronics and Information Technology recently notified Modified Special Incentive Package Scheme under which the government will provide benefits of up to Rs 10,000 crore to the industry over the next five years for promoting production of electronics products and components.

"Electronics manufacturing is absolutely important for India because in absence of policy in this regard, the Indian economy over the years will be paralysed. Import bill of hardware would be so huge that economy will not be able to bear it," Sibal said.

He added that India is a global leader in software design and the future is in embedded software.

"With the MSIP scheme we are going to set up a chip industry in India. A fab (electronic chip making plant) unit in India is going to go long way in strengthening our capabilities in hardware," Sibal said.

Sibal said that due to the policy, all consumer goods would have domestic inputs and value addition should be to around 60 per cent over the years.

"(This) suggests that over the years there is enormous opportunity for domestic players to be actively involved in hardware sector. We are giving 25 per cent incentives in the non-SEZ (special economic zone) and 20 per cent incentive in SEZ," he said.

The Minister said that the government will organise roadshows in foreign countries to create awareness about new policies and attract investors.