The Cabinet on Wednesday gave its approval for amendments in the Modified Special Incentive Package Scheme (M-SIPS) to further incentivise investments in electronic sector and moving towards the goal of ‘Net Zero Imports’ in electronics by 2020.
“Besides expediting investments into the electronics system design and manufacturing (ESDM) sector in India, the amendments in M-SIPS are expected to create employment opportunities and reduce dependence on imports,” an official statement said.
The Cabinet meeting was chaired by Prime Minister Narendra Modi.
The projects already received under the scheme have the potential to generate employment for up to one million persons (direct and indirect), the statement said.
The policy covers all states and districts and provides them an opportunity to attract investments in electronics manufacturing.
So far, 243 applications have been received under the scheme, out of which 75 applications have been approved involving investment proposals of Rs 17,997 crore.
The amended scheme said the applications will be received under the scheme up to December 31, 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 commitment,” the statement said.
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.
“A separate committee headed by cabinet secretary and comprising of CEO, NITI Aayog, secretary expenditure and secretary, MeitY (Ministry of Electronics and Information Technology) will be set up in respect of mega projects, envisaging more than Rs 6,850 crore (approx. $1 billion) investments,” the statement added.