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Make in India: Special incentive package for electronic manufacturing to stay |
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NEW DELHI: The government has extended the special incentive package for electronic manufacturing in India by five years, a move aimed at giving a boost to Prime Minister Narendra Modi's 'Make in India' campaign.
The package, called M-SIPS (modified special incentive package scheme), has been sweetened by including 15 new product categories to the list and by easing the procedure to receive the subsidy. Smart cards, liquid crystal modules, consumer appliances such as refrigerators, air-conditioners, microwaves, fully automatic washing machines, Internet of Things products, multi-functional electronic devices and optical fibre are some new categories, a senior government official said.
Under M-SIPS, investment proposals worth Rs 20,825 crore from 63 companies had come in until May, of which proposals worth over Rs 9,500 crore were approved, according to the official. Among the 40 whose proposals were approved are Tata Power SED, Continental Automotive, Samsung, Bosch, Nidec, Tejas Networks, Motherson Sumi Systems, Nippon Audiotronix, Continental Automotive, GE BE Pvt Ltd and Wipro GE healthcare. It subsidies capex by 20% for investments in SEZs and 25% for projects outside SEZs. It even provides for countervailing duties/excise for capital equipment for the non-SEZ units.
Further, reimbursement of central taxes and duties is provided for high-technology and highcapital investment units like fabs. The government has now made it easier to receive benefits, with disbursement of incentives on a quarterly basis as against annually earlier. It has also extended M-SIPS for units located in any part of the country rather than only in certain notified areas. The M-SIPS incentives will now be allowed from the date of submission of application instead of later.
Source : economictimes.indiatimes.com
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