Union Cabinet approved amendment in Modified Special Incentive Package Scheme

Jan 18, 2017 18:29 IST

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.

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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.

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