- To boost electronic manufacturing in the country, the Union Cabinet on Wednesday approved incentives to the tune of Rs 10,000 crore for investors by amending the Modified Special Incentive Package Scheme (M-SIPS) scheme.
- The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for amendment in the Modified Special Incentive Package Scheme (M-SIPS) to further incentivize investments in Electronic Sector and moving towards the goal of ‘ Net Zero imports’ in electronics by 2020.
- The previous amendment in MSIPS in August 2015 had extended the scheme till July 27, 2020. However, the government decided to cut down the application window to December 2018, to attract serious players and expedite projects, said an official from the Ministry of Electronics and Information Technology.
- The Cabinet, however, has decided to review the decision on further financial commitments in case the incentive commitment of Rs 10,000 crore is reached.
The salient features of the amendment are:
- The applications will be received under the scheme upto 31st 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.
- Approvals will normally be accorded to eligible applications within 120 days of submission of the complete application.
- A unit receiving incentives under the scheme, will provide an undertaking to remain in commercial production for a period of at least 3 years.
- The Appraisal Committee recommending approval of project will be chaired by Secretary, Ministry of Electronics and IT.
- A separate Committee headed by Cabinet Secretary and comprising of CEO, NITI Aayog, Secretary Expenditure and Secretary, MeitY will be set up in respect of mega projects, envisaging more than Rs. 6850 crore (approx. USD 1 Billion) investments.
- The Cabinet had, in July, 2012 approved the M-SIPS to provide a special incentive package to promote large scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector.
- The scheme provides subsidy for capital expenditure – 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. The Scheme was amended in August, 2015 for scope enhancement and simplification of procedure.
- The Scheme has attracted investments in the ESDM sector to the tune of Rs. 1,26,838 crore, of which investments of around Rs. 17,997 crore have been approved by the MeitY.
- The M-SIPS has been able to create positive impact on investment in electronics sector.
Food and Civil Supplies Minister U T Khader on 27th Feb said that the state government will have to discontinue supply of sugar through PDS if the Centre does not restore its ...READ MORE
Siddaramaiah, who presented the state budget proposals for 2017-18 in the Assembly on 15th March, tried to explain the financial constraints his government faces because of a sluggish economy. This has ...READ MORE
The number of women in the State police force is not enough to deal with crimes against women, who constitute about 50% of the total population, the Karnataka High Court ...READ MORE
Experts warn of ecological damage, oppose expansion of Tadadi port Marine experts and faculty of the Indian Institute of Science (IISc) have urged Prime Minister Narendra Modi not to grant environmental ...READ MORE
"A King Cobra has been run over by a vehicle on Castle Rock Main Road passing through the Castle Rock Wildlife Range of Dandeli-Anshi Tiger Reserve." Dandeli-Anshi Tiger Reserve is the fourth ...READ MORE
Pradhana Manthri Gram Sadak yojana (PMGSY) PMGSY was launched in the State during December 2000 with the objective of providing rural connectivity through all weather roads to the habitations having a population of 500 and above. Under ...READ MORE
The third edition of the Karnataka Hakki Habba (bird festival) will be celebrated at Daroji Karadi Dhama, near Hampi, on January 5, 6 and 7. The first two festivals were ...READ MORE
In a development that gives a big boost to the aviation industry in Karnataka, aerospace major Boeing is holding talks with the state government on setting up a new aircraft ...READ MORE
Scientists at the Indian Institute of Science (IISc) are working on a high-tech 3D sketching tool that will allow designers to sketch on a 3D canvas with better precision and ...READ MORE
The Vijayapura civic body will set them up at an estimated cost of Rs. 70 lakh To deal with the rising garbage issue in Vijayapura city and to reduce the transportation ...READ MORE
Karnataka: Govt may stop supplying PDS sugar
Karnataka Budget 2017- 2018 – Highlights
Insufficient women in police force – High Court
Karnataka Current Affairs – KAS / KPSC Exams
Rural Development-Rural Roads InfrastructurePradhana Manthri Gram Sadak Yojana
Karnataka Hakki Habba (bird festival) in January
Karnataka: Boeing in talks with govt to set
IISc scientists work on tool for 3D sketching
Karnataka: Five waste segregation units to be set