Lok Sabha Question No. 1623 (UNSTARRED), answered on 2019-02-13
Subject: MSIPS
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: PRITAM GOPINATH MUNDE, ANANDRAO  ADSUL, SHRIKANT EKNATH SHINDE, DHARMENDRA YADAV, VINAYAK BHAURAO RAUT

## MSIPS

## 1623. DR. PRITAM GOPINATH MUNDE: SHRI ANANDRAO ADSUL:   DR. SHRIKANT EKNATH SHINDE: SHRI DHARMENDRA YADAV:   SHRI VINAYAK BHAURAO RAUT

Will the Minister of ELECTRONICS & INFORMATION TECHNOLOGY be pleased to state:-

- (a) whether the Modified Special Incentives Package Scheme (MSIPS) is being used to attract investments in electronics design  and manufacturing segment and to provide subsidy of 20 per cent on investments in special economic zone and 25 per cent for non-SEZ zone;
- (a) if  so,  the  funds  allocated  by  the  Central  Government  for  MSIPS  and  Electronic  Manufacturing  Clusters (EMCs) during the last three years and the current year;
- (b) the  total  investment  proposals  received  by  the  Central  Government  of  India  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;
- (d) if so, the details thereof;
- (e) whether the Ministry has calculated the amount likely to be required for disbursement of subsidies in the financial year 2018- 19; and
- (f) if so, the details thereof and the manner in which it will be arranged?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI S. S. AHLUWALIA)

(a)    and  (b):    Yes,  Sir,  To  offset  disability  and  attract  investments  in  Electronic  manufacturing,  Modified  Special Incentive Package Scheme (M-SIPS) was launched by the Ministry in July 2012. The scheme provides subsidy of 20% for investments in capital expenditure in Special Economic Zone ( SEZ ) and 25% in non-SEZ zone for setting up of new electronic manufacturing facility or expansion of the existing electronic manufacturing facility. M-SIPS incentives are available in any industrial area notified by Centre/ State/ local authorities across the country. The incentives are available for 44 categories of electronic products and product components.The scheme was opened to receive applications till 31 st December 2018.

The  details  of  funds  allocated  by  the  Central  Government  for  MSIPS  and  Electronic  Manufacturing  Clusters (EMCs) during the last three years and the current year are given as under:

| Financial Year   |   Allocated budget for MSIPS (Rs. in crore | Allocated budget for EMC (Rs. in crore )   |
|------------------|--------------------------------------------|--------------------------------------------|
| 2015-16          |                                      15    | NA                                         |
| 2016-17          |                                      15    | 19                                         |
| 2017-18          |                                     136.86 | 210                                        |
| 2018-19          |                                     450    | 230                                        |

- (c):    The  status  of  applications  under  the  scheme  is  as  follows:  As  on  31  January  2019,  419  investment  proposals involving investment of Rs. 1,13,089  crore are under  consideration.  Out of these 419 applications, 197 applications with  proposed  investment  of  approximately  Rs. 41,790  crore  have  been  approved;  19 applications  with  proposed investment  of  approximately Rs.14,764 crore  have  been  recommended  by  the  Appraisal  Committee  and  are  under process of  approval; 203 applications with proposed investment of approximately Rs 56,534 crore are under appraisal.
- (d)  and (e): No, Sir.

(f)  and (g):  Yes, Sir. Budget of Rs. 500 crore was provided for the FY 2018-19 which has been revised to Rs. 450 crore subsequently.  So  far,  Rs.  251.76  crore  has  been  disbursed  against  35  disbursement  claim  applications.  Remaining amount of Rs. 198.24 crore is likely to be spent by March, 2019.