Amendment in Modified Special Incentive Package Scheme Approved by Union Cabinet (Download PDF)

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The Cabinet amended the Modified Special Incentive Package Scheme (M-SIPS) to boost electronic manufacturing. Under the amended rules, companies that invest in manufacturing would get up to Rs. 10, 000 crore as incentives. The plan is to make India a big hub in electronic manufacturing.

Union minister for electronics and IT Ravi Shankar Prasad

Union Minister for Electronics and IT Ravi Shankar Prasad

Union minister for electronics and IT Ravi Shankar Prasad

Highlights

  • The Policy covers all States and Districts and provides them an opportunity to attract investments in electronics manufacturing.
  • Incentives of Rs. 10, 000 crore have been allowed.
  • Main purpose is to further incentivize investments in Electronic Sector and moving towards the goal of ‘Net Zero imports’ in electronics by 2020.
  • The policy incentivizes electronics and component makers to manufacture domestically by providing them a host of incentives including 20 - 25 % subsidy on capital expenditure.
  • These initiatives if implemented will not only will create an eco-system of ESDM but also help realize the Make-in-India vision.

Features of the amendment

  • The applications will receive under the scheme upto December 31, 2018 or till time that an incentive commitment of Rs. 10, 000 crore is reached.
  • In case of incentive commitment of Rs. 10, 000 crore is reached, a review will held to decide further financial commitments.
  • Incentives will available for investments made within five years from the date of approval.
  • Approvals will normally be given within 120 days of application.
  • The unit receiving incentives will have to remain in commercial production for a period of at least 3 years.
  • Appraisal Committee recommending approval of project will be chaired by Secretary, Ministry of Electronics and IT.

About Ministry of Electronics and IT (MeitY)

  • It is part of the Union Government of the Republic of India.
  • It was formed by giving the status of ministry to the Department of Electronics and Information Technology (DeitY) of Ministry of Communications and Information Technology.
  • Headquarters: Sanchar Bhawan, New Delhi
  • Aims to promote e-Governance for empowering citizens, promoting the inclusive and sustainable growth of the Electronics.
  • Vision: e-Development of India as the engine for transition into a developed nation and an empowered society.
Image for Mission of MeitY

Image for Mission of MeitY

Image for Mission of MeitY

  • Mission:

    • To promote e-Governance for empowering citizens,
    • Promoting the inclusive and sustainable growth of the Electronics, IT & IT industries,
    • enhancing India’s role in Internet Governance,
    • adopting a multipronged approach that includes development of human resources,
    • promoting R&D and innovation,
    • Enhancing efficiency through digital services and ensuring a secure cyber space.
    Organizational Chart of MeitY

    Organizational Chart of MeitY

    Organizational Chart of MeitY

- Published/Last Modified on: March 17, 2017

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