IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 14 Feb 2014 | Removal date: open ended
Still in force

Interest payment subsidy

On 14 February 2014, the Government of India provided a series of incentives including interest free loans of approximately INR5124 crores each (~USD 822 million*) to two Semiconductor Wafer Fabrication (Fab) facilities.
 
The incentives where granted under a scheme designed the fall of 2013. On 9 October 2013, the Indian Ministry of Communcations & Information Technology invited Expressions of Interest (EoI) for setting up Semiconductor Wafer Fabrication (Fab) facilities in India.
 
To this end, the government shall provide any of the following incentives:
i) Reimbursement of 25% of the capital expenditure of the project under the Modified Speical Incentives Package scheme (M-SIPS)
ii) Reimbursement of Countervailing Duty on purchase of capital goods under M-SIPS
iii) Excise duty paid on products of Fab may be reimbursed under M-SIPS
iv) Waiver of basic customs duty may be provided for capital goods, raw materials, consumables not covered under any scheme
v) Investment and R&D based deductions under the Income Tax Act
vi) Viability Gap Funding (VGF) in the form of interest-free loans
 
This proposal aligns within the strategy of India to develop capacities inthe Electronics Systems Design and Manfacturing sector (see related measures).
 
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.
 
*INR to USD conversion as on 16 Febryary @ INR 62.29/USD

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

471 Electronic valves & tubes; electronic components; parts
8542 Electronic integrated circuits.
854231 Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits
854232 Memories
854233 Amplifiers
854239 Other
854290 Parts

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