Cos can now submit applications for availing M-SIPS: Govt
New Delhi: The government Thursday said it has released guidelines and appointed a nodal officer for the Modified Special Incentive Package Scheme (M-SIPS).
Companies can now send their applications for availing the scheme, which is aimed at promoting production of electronic products in the country.
"With the release of guidelines for M-SIPS, appointment of nodal officer, and notification of application fee, M-SIPS is now ready to receive applications," Ministry for Communications and IT said in a statement.
The Cabinet in July last year approved M-SIPS under which the government will provide up to Rs 10,000 crore in benefits to the industry during the 12th Five Year Plan period (2012-17) for promoting production of electronics products and components in India.
The guidelines contain detailed terms and conditions of the scheme and procedure to apply for the scheme along with the application formats, list of category-wise requirement of minimum investment and list of various electronic system design and manufacturing (ESDM) verticals eligible for M-SIPS.
The companies are required to submit a non-refundable application fee ranging from Rs 10,000 for projects costing less than Rs 10 crore to Rs 1 lakh for projects costing Rs 10,000 crores and above, it said.
A web portal is also expected to be ready in four weeks, so that all applications can be submitted online, the statement said.
"All applications which will be received by DeitY on or before July 26, 2015 will be considered for incentives under M-SIPS," it added.
The scheme will provide subsidy for investments in capital expenditure with a limit of 20 percent for investments in Special Economic Zone and 25 percent in non-SEZs.
Under M-SIPS, investors will get reimbursement of Countervailing Duties and excise for capital equipment for units set-up outside SEZ.
The incentives will be given to investments made in a project within a period of 10 years from the date of its approval.
The government has included 29 categories in ESDM sector that can avail benefit of this M-SIPS.
This includes telecom, IT hardware, consumer electronics, medical electronics, solar photo-voltaic, LEDs, LCDs, strategic electronics, avionics, industrial electronics, nano- electronics, semiconductor chips, other electronic components, contract manufacturing.
The scheme has included units starting from raw materials assembly, testing, packaging and accessories which will boost ecosystem for electronics manufacturing in the country and reduce dependence on imports.