Modified Special Incentive Package Scheme (M-SIPS)
In order to promote large scale manufacturing in the country, M-SIPS was announced by the Government in July, 2012 to offset disability and attract investments in Electronics System Design and Manufacturing (ESDM) Industries. The scheme provides incentive for investments on capital expenditure- 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.
Salient Features of the Scheme
- Capital Subsidy – 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.
- Incentives for both new units and expansion units.
- Incentives for a period of 5 years from the date of approval of application.
- Minimum investment threshold for each product category/ vertical (from Rs 1 crore for manufacturing of accessories to Rs 5000 crores for memory semiconductor wafer fabrication unit.
- Unit to be in Industrial Area notified by Central/State Govt.
Development
Out of 315 approved applicants, 271 applicants have started incurring investment on their projects and have made investment of ₹33,506 crore. 242 applicants have commenced commercial production with reported turnover of ₹6,63,274 crore, which includes exports to the tune of ₹1,06,740 crore. These units have given employment opportunities (Direct &Indirect) to over 3,45,571 persons and given revenue of about 85,697crore to the Government.
Target Segment
Incentives for 44 categories/verticals across the value chain (raw materials including assembly, testing, packaging and accessories, chips, components).