Modified Special Incentive Package Scheme Current Affairs
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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.
- 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.