Apart from above additional incentives are given under various |
M-SIPS include two applications 1) Initial application & 2) |
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schemes in ESDM sector and by the state governments. The |
Follow up application |
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details of which can be seen from Q. 44 to 60. |
Initial application: An application submitted by an applicant |
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Q. 44 Are there any incentives or schemes for electronics system |
under the scheme containing requisite information, along with |
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design and manufacturing sector unit? |
supporting documents along with application fee, and |
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Yes, Department of Electronics and Information Technology |
documents showing financial Closure of an amount not less |
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has launched the following schemes to promote domestic |
than the threshold value as applicable for the project and also |
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manufacturing of electronics items: |
not less than 20 % of the complete project. |
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n |
Modified special incentive package scheme( M-SIPS) |
Follow on application: Follow up application for the purpose of |
provides for subsidy of 25 % of capital expenditure in nonseeking |
the scheme means an application submitted by an applicant |
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SEZs( and 20 % in SEZs) for investments made for 10 years. |
approval of a second or subsequent phase of an |
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In addition, reimbursement of central taxes and duties on |
approved project. The follow up application would be made in |
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specified projects is also provided for period of 10 years. |
the follow up application form prescribed under the scheme, |
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The support is available for any stage of value-addition of |
along with application fee and supporting documents with |
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the electronic product. Incentives start only when initial |
required financial closure of the amount required to implement |
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capital expenditure cross minimum threshold and |
the phase of the project proposed in the follow up application. |
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thereafter it is given on annual capital expenditure. |
The follow up application can be made only in those projects |
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n
Preference to domestically manufactured electronic goods in government procurement is provided.
Q. 45 When was the M-SIPS launched and what is the duration of the
scheme?
MSIPS was launched on 27 July 2012 and it will be applicable for 3 years from this date.
Q. 46 Can existing units claim benefits under M-SIPS?
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where the financial closure furnished at the time of initial application is for an amount less than the Approved Project cost.
The details of policy can be seen from the following link-
( http:// deity. gov. in / sites / upload _ files / dit / files / MSIPS % 20Notif ication. pdf)
The detailed guidelines including the process of application etc can be seen from the following link-
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The MSIPS will be applicable to investments in new ESDM |
( http:// deity. gov. in / sites / upload _ files / dit / files / MSIPS _ Guidelin |
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units and expansion of capacity / modernization and |
es. pdf) |
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diversification of existing ESDM units. ESDM unit shall mean a unit engaged in design and manufacturing of the electronics and nano-electronics and their accessories. It includes all stages of value addition and also includes electronics manufacturing services. |
It is advisable to hire the services of the consultancy firm or industry association or chartered accountant to file an application for M-SIPS or EMC. The application for MSIPS can also be made online through the following link-
( http:// www. msips. in / MSIPS /).
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Expansion of existing unit would mean increase in the value of fixed capital investment in plant & machinery of an ESDM unit by not less than 25 % for the purpose of expansion of capacity / modernization and diversification.
Q. 47 What are the items and investment thresholds under M-SIPS?
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Q. 51 Is Government of India encouraging semiconductor wafer manufacturing facilities?
The Government of India( GoI) has accorded“ in principle” approval for establishing two semiconductor wafer fabrication
( FAB) manufacturing facilities in India and has also decided to
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The list of items eligible for incentives and investment |
apprise all other semiconductor wafer fabrication |
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threshold can be seen from the following link- |
manufacturers, of the quantum of subsidy / other benefits / |
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( http:// deity. gov. in / sites / upload _ files / dit / files / MSIPS % 20Notif |
support being offered. The department has provided range of |
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ication. pdf) |
incentives for the units. The details of the same can be seen |
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Q. 48 What is the meaning of capital expenditure for the purpose of |
from the following link-( http:// deity. gov. in / esdm # smc) |
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claiming benefits under M-SIPS? |
Q. 52 Is there any preference for domestically manufactured |
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The capital expenditure will be the total expenditure in land, |
electronics items? |
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building, plant & machinery and technology including R & D. |
Yes, the government has laid down the policy for providing |
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The total cost of land exceeding 2 % of the capital expenditure |
preference to domestically manufactured electronic products. |
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shall not be considered for calculation of incentives in this |
The electronics products having security implications and |
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regard. |
agencies deploying them will be notified. The notified agencies |
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Q. 49 When are the incentives released under M-SIPS? |
will be required to procure the notified electronic product from |
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The incentives against the capital expenditure shall be released |
a domestic manufacturer to the extent prescribed in the |
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after the end of financial year in which the total investment |
notification. |
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exceeds the threshold value. Thereafter, the incentive shall be |
Q. 53 Is the procurement policy applicable to all ministries? |
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provided on annual basis on the value of investment on the |
Yes, the policy will be applicable to all ministries / departments |
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value of investments made during the year and be restricted to |
and their agencies( except defence) for electronic products |
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the first 10 years from the date of approval of the unit under |
purchased for government purposes and not with view to |
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the scheme. The re-imbursement of central taxes and duties |
commercial resale or with the view to use in the production of |
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actually paid shall be released after the end of financial year in |
goods for commercial re-sale. |
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which unit commences production. Thereafter the incentive is | ||