The India Cabinet on Wednesday gave its approval for amendments in the Modified Special Incentive Package Scheme (M-SIPS) to further incentivise investments in electronics 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.
India’s Prime Minister Narendra Modi has chaired the Cabinet meeting on Wednesday.
India cabinet’s decision to approve Rs 10,000 crore incentive for electronic manufacturing by March 2018 is expected to boost investment in India.
Manish Sharma, president of CEAMA (Consumer Electronics and Appliances Manufacturers Association), said: “This is a step towards boosting the local manufacturing as it will discourage the import of components and parts required for handsets. These initiatives if implemented will not only will create an eco-system of Electronic System Design & Manufacturing (ESDM) but also help realize the Make-in-India vision.”
The projects already received under the scheme have the potential to generate employment for up to one million persons (direct and indirect).
The policy covers all states and districts and provides them an opportunity to attract investments in electronics manufacturing.
India government said it has already received 243 applications for electronics manufacturing under the scheme and approved 75 applications involving investment proposals of Rs 17,997 crore.
The government will receive the applications 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.
The government will conduct a review to decide further financial commitment in case the incentive commitment of Rs 10,000 crore is reached.
The government will offer the incentive under the scheme from the date of approval of a project and not from the date of receipt of application — for new approvals for electronics manufacturing.
The India Government will set up a separate committee headed by cabinet secretary and comprising of CEO, NITI Aayog, secretary expenditure and secretary, MeitY (Ministry of Electronics and Information Technology) to evaluate mega projects, envisaging more than Rs 6,850 crore (approx. $1 billion) investments in electronics manufacturing.
