Ministry/Department : Ministry of Electronics and IT
Aims to provide a special incentive package to promote large scale manufacturing in the ESDM sector to boost domestic electronic product manufacturing in the country.
Scheme:
- The scheme provides subsidy for capital expenditure up to 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.
- It also provides reimbursement of countervailing duty/excise for capital equipment for non-SEZ units and also reimbursement of duties and central taxes for some of the projects with high capital investments.
Recent Amendments:
- These amendments will incentivize investments in electronic sector and move towards Union Government’s goal of ‘Net Zero imports’ in electronics by 2020.
- The applications will be received under M-SIPS scheme till December 2018 or till such time that an incentive commitment of Rs 10,000 crore is reached, whichever is earlier.
- In case the incentive commitment of Rs 10,000 crore is reached, a review will be held to decide further financial commitments.
- For new approvals, the incentive under the scheme will be available from the date of approval of a project and not from the date of receipt of application.
- The incentives will be available for investments made within 5 years from the date of approval of the project.
- Unit receiving incentive will provide undertaking to remain in commercial production for at least 3 years.
Significance:
- Expedite investments into the Electronics System Design and Manufacturing (ESDM) sector in India.
- Create employment opportunities and reduce dependence on imports
Factual Information:
- Started in 2012