ESDM2013: Applications invited for M-SIPS from electronics and semiconductor biz
Department of Electronics and Information Technology (DeitY)
has announced Modified Special Incentive Package Scheme
(M-SIPS) is now ready to receive applications. DeitY has
released guidelines for M-SIPS, appointed Nodal officer,
and notified application fee for M-SIPS. To boost the local
manufacturing of electronics and semiconductor chips, Union
Government has come out with range of initiatives. M-SIPS
is part of that initiative.
Below is the full release from PIB:
With the release of Guidelines for M-SIPS, appointment of
Nodal officer, and notification of application fee, M-SIPS
is now ready to receive applications. The M-SIPS scheme
provides following incentives:
Capital Expenditure (Capex) subsidy of 25% in non-SEZ and
20 % within SEZ
Reimbursement of CVD/excise for capital equipment for non-SEZ
units
Reimbursement of central taxes and duties for 10 years in
select high- tech units like fabs.
The Capex includes not only expenditure incurred on plant,
machinery and equipment, tools etc but also expenditure
incurred on captive power plant, utilities machines and
captive R&D including cost of IPRs, copyrights etc. It also
includes cost of land and building not exceeding 2% of the
total project capital expenditure. These incentives are
available for investments made in a project within a period
of 10 years from the date of approval.
Guidelines for M-SIPS are available on the DeitY website.
These contain the detailed terms and conditions of the scheme
and procedure to apply for the scheme along with the application
formats, the list of category-wise requirement of minimum
investment and the list of various ESDM verticals eligible
for M-SIPS.
An applicant for the purpose of the scheme can be a legal
entity or consortium of legal entities registered in India
proposing to invest in an ESDM project. The M-SIPS requires
applicants to submit applications with Financial Closure
for the project they propose to execute. The project can
be implemented in single phase or in multiple phases. In
the case of a multi-phase project, the Financial Closure
can be given in phases. In that case, the complete project
will be considered for approval and only that phase for
which FC is given will be considered for implementation
and incentives. Further, follow-up applications (max 4 nos.
allowed) can be submitted for seeking implementation of
subsequent phases of the project. M-SIPS incentives are
available to units within notified Electronics Manufacturing
Clusters (EMC). EMCs will be notified by the Department
separately.
A project proposed under the scheme may include multiple
manufacturing facilities at one or more locations and it
may include one or more electronic products in a single
application. An applicant can also submit one or more initial
applications under this scheme.
A Nodal Officer(M-SIPS) has been appointed who would be
the key contact for all communications related to M-SIPS
. All applications under M-SIPS are required to be submitted
to Nodal Officer (M-SIPS), Department of Electronics and
IT, Electronics Niketan, Lodhi Road, New Delhi-110003. A
portal is also expected to be ready in 4 weeks, so that,
all applications can be submitted online.
The non- refundable application fee required to be submitted
along with the application form has been separately notified
(notified on 31-12-2012). It varies from Rs 10,000/- for
projects costing less than Rs 10 crores to Rs 1,00,000/-
for projects costing Rs 10,000 crores and above.
To promote large-scale manufacturing in the Electronic System
Design and Manufacturing (ESDM) sector in India, the Modified
Special Incentive Package Scheme ( M-SIPS) was notified
vide Notification no. 175 dated 27th July 2012 in Part-I
, Section 1 of the Gazette of India.
The scheme is available for both new projects and expansion
projects. The incentives are available for units all across
the value chain starting from raw materials including assembly,
testing, packaging and accessories and covering almost all
verticals of ESDM products like Telecom Equipments, Mobile
SETS and Accessories, OPTO Electronics, IT Hardware, Bio-Metric/
Identity Devices, Consumer Electronics, Power Supply for
ESDM Products, Medical Electronics, Semiconductor Wafering,
Solar Photovoltaics, Semiconductor Chips & Components, FABS
for ESDM PRODUCTS, LEDS, LCDS, AVIONICS , Electro-Mechanical
Components, Nano-Electronics, E-Waste Processing, Automotive
Electronics and also Electronics Manufacturing Services
etc.
All applications which will be received by DeitY on or before
26-07-2015 will be considered for incentives under M-SIPS.
M-SIPS Guidelines and details regarding the Nodal Officer
and Application fee can be viewed on http://deity.gov.in/content/electronic-hardware
News Source URL: http://pib.nic.in/newsite/erelease.aspx?relid=91481
Author: Srinivasa Reddy N
