Lok Sabha Question No. 6131 (UNSTARRED), answered on 2018-04-04
Subject: MSIPS
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: VINAYAK BHAURAO RAUT, Shrirang Appa Barne, SHIVAJI ADHALRAO PATIL, ANANDRAO  ADSUL, DHARMENDRA YADAV

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED   QUESTION NO. 6131

TO BE ANSWERED ON 04.04.2018

## MSIPS

## 6131.     SHRI VINAYAK BHAURAO RAUT: SHRI  SHRIRANG  APPA  BARNE: SHRI ADHALRAO  PATIL  SHIVAJIRAO: SHRI ANANDRAO  ADSUL: SHRI DHARMENDRA  YADAV:

Will the Minister of Electronics and Information Technology  be pleased to state:

- (a) whether the Modified Special Incentive Package Scheme (MSIPS) was announced in  July  2012  to  attract  investments  in  electronics  design  and  manufacturing segment and to provide subsidy of 20 per cent on investments in special economic zone (SEZ) and 25 per cent for non-SEZ zone;
- (b) if  so,  whether  the  Government  has  allocated  Rs.  18.5  crore  for  MSIPS  and Electronic Manufacturing Clusters (EMC);
- (c) if so, the total investment proposals received by the Government under MSIPS for electronics manufacturing in the country and the present status thereof during each of the last three years;
- (d) whether the Ministry of Electronics and IT is facing shortage of funds needed for disbursement of incentives promised under its various schemes to boost electronic manufacturing  in  the  country  and  if  so,  the  facts  in  this  regard  along  with  the reasons therefor;
- (e) whether  the  Ministry  has  calculated  the  amount  likely  to be required for disbursement of subsidies in the financial years 2017-18 and 2018-19; and
- (f) if so, the details thereof and the steps taken in this regard?

## ANSWER

## MINISTER of STATE for ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI K. J. ALPHONS)

(a):  Yes, Sir.  To offset disability and attract investments in Electronic manufacturing, Modified Special Incentive Package Scheme (M-SIPS) was launched by the Government in July 2012. The scheme has been suitably amended time to time. The scheme  provides 20-25% subsidy for investments  in  capital  expenditure  for  setting  up  of  an  electronic manufacturing facility (20% for SEZ Units and 25% for non-SEZ Units). The incentives are  available  for  44  categories  of  electronic  products  and  product  components.  The scheme is applicable for new projects and expansion projects.

The  copy  of  M-SIPS  policies  and  amendment  are  available  in  public  domain  at http://meity.gov.in

- (b): In the FY 2017-18, the provision of Rs 462.86 crore for the Scheme of promotion of electronics and IT hardware manufacturing has been made.  Out of which, Rs 220 Crore was  earmarked    for  Electronics  Manufacturing  Cluster  (EMC)  and  Rs  136  crore    for Modified Special Incentive Package Scheme (M-SIPS).

(c): The details of proposal received under M-SIPS in last 3 years and their status is as under:

|   S. No. | Year    |   Proposal Received | Present Status                                        |
|----------|---------|---------------------|-------------------------------------------------------|
|        1 | 2015-16 |                 122 | Approved: 72 Under Appraisal: 15 Closed/rejected : 35 |
|        2 | 2016-17 |                  86 | Approved: 30 Under Appraisal: 30 Closed/rejected: 26  |
|        3 | 2017-18 |                  53 | Approved: 8 Under Appraisal: 38 Closed/rejected: 7    |

- (d): Out of the provision of Rs 462.86 crore  in FY 2017-18 for the scheme of promotion of  electronics and IT hardware manufacturing, an expenditure  of  Rs.460.15 crore has been made as on 31 st March 2018.
- (e) and (f): Yes, Sir.   In FY 2017-18, a provision of Rs 136 crore was made based upon the requirements assessed as per the applications received for disbursement of incentives.    For  2018-19,  Rs  500  crore  has  been  provisioned  for  disbursement  of incentives under M-SIPS.

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