Govt clears 314 applications for modified incentive package scheme
The electronics and IT ministry has approved 314 applications with proposed investments of Rs 86,824 crore under a modified incentive package scheme until May 31, 2022, an official note said.
The plan approved in May included an investment of Rs 596 crore from Bosch Automotive Electronics Private Limited, according to the official note on June 24. On May 31, 2022, 320 applications with proposed investment of Rs 89,232 crore are being considered. The official document said that 314 applications with proposed investment of around Rs 86,824 crore were approved out of these 320 applications.
The government announced the M-SIPS Modified Special Incentive Package Scheme in July 2012. It has been amended twice -- in August, 2015 and January, 2017 -- and provides a capex subsidy of 20 -- 25 per cent.
The application window for M-SIPS was closed on December 31, 2018.
There were incentives of 1,774 on May 31, 2022, as per the incentives of the government. The document said that 47 crore have been distributed to 114 applicants.
M-SIPS was the first scheme under which the government wooed electronics manufacturing companies.
The initial applicants were Samsung, LG, Bosch, Tejas Networks, Motherson Sumi Systems, Tata Power SED, Nidec India, Nippon Audiotronix, Continental Automotive, GE BE and Wipro GE Healthcare.
The incentive schemes are being introduced by the government in an effort to woo global mobile device makers.
In October 2020, it cleared 16 proposals from domestic and international companies involving the investment of 11,000 crore under the Production Linked Incentive PLI scheme to manufacture mobile phones worth Rs 10.5 lakh crore over the next five years.
The companies include the iPhone maker Apple's contract makers Foxconn Hon Hai, Wistron and Pegatron, apart from Samsung and Rising Star. Domestic companies with proposals have been approved, including Lava, Bhagwati Micromax Padget Electronics Dixon Technologies UTL Neolyncs and Optiemus.