The Department of Electronics and Information Technology (DeitY) is likely to approach the cabinet for proposed amendments to the Modified Special Incentive Package Scheme (M-SIPS), a programme approved in 2012 to encourage electronic manufacturing in the country. The proposed amendments include a 10 per cent subsidy to be provided to electronic manufacturers on their production turnover.
This subsidy will be in addition to the subsidy the centre has offered on upfront investments to set up such plants. The proposed production subsidy will also replace the existing provision of reimbursing manufacturers with the amount they spend on central taxes and duties for making hi-tech electronics products, including microprocessors.
Under M-SIPS, the centre intends to provide benefits of up to Rs 100 billion to the electronics products and components industry. The scheme provides subsidy for capital outlays with a limit of 20 per cent for investments in special economic zones (SEZ) and 25 per cent in non-SEZs. Under this scheme, the centre has already received 47 applications for projects worth Rs 166.02 billion as on January 10, 2015. Of these, 29 projects entailing investments worth Rs 44.16 billion have been approved, while Rs 21.27 billion investments have been recommended by the appraisal committee.
