Lok Sabha Question No. 6380 (UNSTARRED), answered on 2017-04-12
Subject: MSIPS
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: VINAYAK BHAURAO RAUT, ANANDRAO  ADSUL, SHRIKANT EKNATH SHINDE, SHIVAJI ADHALRAO PATIL, DHARMENDRA YADAV, Shrirang Appa Barne

## GOVERNMENT OF INDIA MINISTR OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED QUESTION  No. 6380

TO BE  ANSWERED ON 12.04.2017

## MSIPS

6380      SHRI    VINAYAK    BHAURAO    RAUT:    SHRI  ANANDRAO    ADSUL:      DR.  SHRIKANT EKNATH    SHINDE:    SHRI  ADHALRAO    PATIL    SHIVAJIRAO:    SHRI  DHARMENDRA YADAV:  SHRI  SHRIRANG  APPA  BARANE:

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  percent  on investments in special economic zone and 25 percent for non-SEZ zone and if so, the facts in this regard;
- (b)       whether  the  Government  has  allocated  Rs.  18.5  crore  for  MSIPS  and  Electronic  Manufacturing Clusters(EMCs) and if so, the total investment proposal received by the Government under MSIPS for electronics manufacturing in the country and the present status thereof; ;
- (c)          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 details thereof;
- (d)     whether the Ministry has calculated the amount likely to be required for disbursement of subsidies in the financial year 2017-18; and
- (e)       if so, the details thereof and the manner in which it will be arranged?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI P. P. CHAUDHARY)

(a):  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 was initially opened to receive applications for 3 years i.e. till 26-07-2015. For giving a big boost to electronics manufacturing in the country, in August  2015,  the  Government  approved  the  extension  of  the  scheme  along  with  the  few  procedural simplifications and expansion of scope to new product categories. Further, amendments in the M-SIPS policy have been notified on 30-01-2017 with a view to expedite investments in electronic manufacturing. The copy of MSIPS policies and amendment are available in public domain at http://meity.gov.in.

The  scheme  mainly  provides  20-25%  subsidy  for  investments  in  capital  expenditure  for  setting  up  of  an electronic manufacturing facility. It also provides for reimbursement of CVD/Central Excise Duty   for capital equipment  for  the  non-SEZ  units.  The  incentives  are  available  for  44   categories  of  electronic  products  and product components. Applications under the scheme will be received till 31st December 2018 or till such time that the incentive commitment reaches Rs. 10,000 crore, whichever is earlier. The incentives  will  be available for a period of 5 years from the date of approval of the application.

(b), (c), (d) and (e):   In the Budget for 2017-18, a provision of Rs.745 crore has been allocated for "Promotion of  Electronics/IT  hardware  manufacturing'.  In  the  Budget  Estimate,  Rs  300  crore  has  been  provisioned  for MSIPS and Rs 210 crore for EMC.

The details of applications received by the Ministry under MSIPS  are as given below:

| Particulars           |   Number of Proposals | Pro(Rs crore)posed Investment   |
|-----------------------|-----------------------|---------------------------------|
| Applications Approved |                    95 | 20,185                          |

| Applications recommended for approval   |   03 | 544      |
|-----------------------------------------|------|----------|
| Applications under appraisal            |  134 | 1,22,434 |
| Grand Total                             |  232 | 1,43,163 |

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