Union Cabinet approved amendment in Modified Special Incentive Package Scheme
The proposed amendments in Modified Special Incentive Package Scheme are expected to create employment opportunities and reduce dependence on imports.
The Union Cabinet chaired by Prime Minister Narendra Modi on 18 January 2017 gave its approval for an amendment in the Modified Special Incentive Package Scheme (M-SIPS).
The proposed amendment seeks to further incentivize investments in the electronic sector and will help India in achieving the goal of Net Zero Imports in Electronics by 2020.
Salient features of the amendment are -
• The applications will be received under the scheme up to 31 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 given to eligible applicants within 120 days of submission of the complete application.
• A unit receiving incentives under the scheme, must give an undertaking expressing its commitment to remain in commercial production for a period of at least 3 years.
• The Appraisal Committee recommending approval of a project will be chaired by Secretary, Ministry of Electronics and IT.
• A separate committee will be formed under the Cabinet Secretary to give approve mega projects.
• The proposed committee will have the CEO, NITI Aayog, Secretary Expenditure and Secretary, Ministry of Electronics and Information Technology (MeitY) as its members.
About Modified Special Incentive Package Scheme
• The scheme covers all States and districts and provides them an opportunity to attract investments in electronics manufacturing.
• So far, 243 applications have been received under the scheme. Out of them, 75 applications have been approved involving investment proposals of Rs 17,997 crore.