JOIN US The government has received Rs 1,29,000 crore investments, as part of the Modified Special Incentive Package Scheme (M-SIPS) till now, Ministry of Electronics and Communications Technology (MeitY) Joint Secretary Rajiv Bansal said.
Interacting with DH, as part of the 12th edition of IESA Vision Summit, Bansal said M-SIPS has received overwhelming response across the country. “We have received 250 applications till now, and the ministry has received an investment of Rs 1,29,000 crore. The scheme is a part of our overall initiative to further expand the electronics system design and manufacturing sector (ESDM) in the country,” he said.
Finance Minister Arun Jaitley as part of the Budget 2017-18, hiked the allocation for M-SIPS and the Electronics Development Fund to Rs 745 crore. M-SIPS was notified on 2012 to boost the ESDM sector in the country along with the Electronics Development Fund (EDF).
“We have right now approved 75 projects and Rs 18,000 crore has been disbursed as part of the M-SIPS subsidy. Also, 35 units are product companies which started operations in various states,” he said.
M-SIPS is available for both new and expansion projects. Besides capital subsidy of 20% in SEZ (25% in non-SEZ), the scheme also provides companies engaged in electronics manufacturing reimbursements of CVD/excise for capital equipment for non-SEZ units.
“The government’s National Policy on Electronics (NPE) envisons to attract $100 billion (Rs 6.5-lakh crore) worth of investments and generates employment for nearly 28 million individuals by 2020. Also, there is a plan to achieve the target of net zero imports in electronics by 2020,” he said.
Bansal said the proliferation of Internet will pave the way for more use of electronic equipment. “We have currently 400 million mobile users, and it will reach 800 million within two years. Also, the government’s ambitious Digital India and Make in India campaigns give thrust to electronic manufacturing,” he said.