Manufacturing Sector Current Affairs

Union Cabinet approves amendment in Modified Special Incentive Package Scheme

The Union Cabinet has given its approval for amendment in the Modified Special Incentive Package Scheme (M-SIPS) for electronics manufacturing.

These modifications will further incentivize investments in electronic sector and move towards Union Government’s goal of ‘Net Zero imports’ in electronics by 2020. 

Key Amendment
  • 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.
  • The Appraisal Committee chaired by Secretary, Ministry of Electronics and IT will recommend approval of project.
Significance of amendment in M-SIPS
  • Expedite investments into the Electronics System Design and Manufacturing (ESDM) sector in India.
  • Create employment opportunities and reduce dependence on imports. 

About Modified Special Incentive Package Scheme (M-SIPS)

  • The Union Cabinet in 2012 approved the M-SIPS to provide a special incentive package to promote large scale manufacturing in the ESDM sector to boost domestic electronic product manufacturing in the country.
  • The scheme provides subsidy for capital expenditure 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.

Tags:

PM launches National SC/ST hub and Zero Defect – Zero Effect scheme

Prime Minister Narendra Modi launched the National SC/ST hub and the Zero Defect, Zero Effect (ZED) scheme for Micro, Small and Medium Enterprises (MSMEs) at Ludhiana in Punjab.

Besides, he also presented National Awards to MSMEs. He also distributed 500 traditional wooden charkhas (spinning wheels) among women.

What is National SC/ST hub?

  • The objective of the SC/ST (Schedule Castes/Schedule Tribes) Hub is to provide professional support to entrepreneurs from the SC/ST.
  • It also seeks to promote enterprise culture and entrepreneurship among the SC/ST population and to enable them to participate more effectively in public procurement.
  • It will work towards strengthening market access/linkage, capacity building, monitoring, sharing industry-best practices and leveraging financial support schemes.

Public Procurement Policy, 2012: It specifies that 4% of procurement done by ministries, departments and CPSEs should be done from enterprises owned by SC/ST entrepreneurs.

What is Zero Defect, Zero Effect (ZED) scheme?

  • ZED Scheme aims to rate and handhold all MSMEs to deliver top quality products using clean technology. It will have sector-specific parameters for each industry.
  • MSME sector is crucial for the economic progress of India and this scheme will help to match global quality control standards.

The slogan of Zero Defect, Zero Effect (ZED) was first mentioned by PM Narendra Modi in his Independence Day speech in 2014. It was given for producing high quality manufacturing products with a minimal negative impact on environment.

Comment

  • ZED Scheme is meant to raise quality levels in  unregulated MSME sector which is engine of growth for Indian economy. MSME sector drives almost 38% of nation’s GDP and around employs 110 million employees.
  • The scheme will be cornerstone of the Central Government’s flagship Make in India programme, which is aimed at turning India into a global manufacturing hub, generating jobs, boosting growth and increase incomes.

Tags:

123