ANNOUNCEMENT 30 Jan 2017

The application deadline and the incentive period has been reduced for an incentive scheme for investments in electronics manufacturing units.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

Official Notification of the Ministry of Electronics and Information Technology
http://meity.gov.in/writereaddata/files/msips_notification.pdf

Inception date: 30 Jan 2017 | Removal date: 31 Dec 2018
Still in force

Production subsidy

On 30 January 2017, the Ministry of Communications and Information Technology approved an amendment to the Modified Special Incentive Package Scheme (M-SIPS), which provides incentives to capital investments in the Electronic System Design and Manufacturing (ESDM) sector. The changes are listed below - 

  • Applications under the scheme will be accepted until 31 December 2018 or till the incentive commitment reaches INR 10,000 crore (USD 1474 million)*, whichever is earlier. The application deadline earlier was set at 26 July 2020 and has been reduced under the current amendment
  • Incentives under the scheme will be available for a period of only 5 years from the date of approval. The earlier guidelines prescribed availability of incentives for 10 years from the date of receipt of the application.
  • The unit that receives incentives will have to provide an undertaking to remain in production for at least 3 years after receiving such incentives. There were no such requirements in the earlier guidelines
  • The amendment provides a timeline of 120 days for approval of all eligible complete applications. Such a timeline was not provided earlier.

INR to USD conversion as on 30 January 2017 - INR 67.81 / USD