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 | ||