Modified special incentive package: –
- Proposals include an investment of Rs 5.96 Billion from Bosch Automotive.
- The scheme was first launched in July 2012. It mainly provides a capex subsidy of 20-25%.
- As of May 31, incentives of Rs 17.7447 Billion have been disbursed to 114 applicants.
A total of 314 applications worth Rs 868.24 Billion have been approved by the electronics and IT ministry. The approval comes under a modified special incentive package scheme, according to an official note. LG, Bosch, Samsung, Tejas Networks, Motherson Sumi Systems, Tata Power SED, Nippon Audiotronix, Nidec India, Continental Automotive, GE BE and Wipro GE healthcare were the early investors in the M-SIPS (Modified Special Incentive Package Scheme).
“As on May 31, 2022, 320 applications with proposed investment of Rs 89,232 crore are under consideration. Out of these 320 applications, 314 applications with proposed investment of approximately Rs 86,824 crore have been approved,” the official note said. The approved proposals include an investment of 5.96 Billion from Bosch Automotive Electronics Private Limited, according to the official note.
“As on 31st May 2022, incentives of Rs 1774.47 crore have been disbursed to 114 applicants,” the official note said.
M-SIPS was launched in July 2012 and underwent two amendments, in August 2015, and in January 2017. The investment scheme provides a capex subsidy of 20-25 per cent. The application window for M-SIPS closed on December 31, 2018.
M-SIPS was one of the first schemes launched by the government to attract electronics manufacturers to invest in India. In October 2020, it cleared 16 proposals worth Rs 110 Billion under Production Linked Incentive (PLI) scheme to manufacture mobile phones over 5 years.
The companies whose proposals were approved include iPhone maker Apple’s contract manufacturers Foxconn Hon Hai, Wistron and Pegatron, along with Samsung and Rising Star. Domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), UTL Neolyncs and Optiemus.