NEW DELHI: The government said it has received investment proposals worth Rs 2,000 crore under a scheme that provides incentives for promoting production of electronics products and components in the country.
“In terms of the M-SIPS (Modified Special Incentive Package Scheme (M-SIPS), we got Rs 2,000 crore worth of proposals…some more are in the offing but this is where we stand (now), out of that we have cleared almost Rs 1,000 crore,” Department of Information Technology Secretary J Satyanarayana said on the sidelines of a PHD event.
Under the M-SIPS, the government will provide up to Rs 10,000 crore in benefits to the industry during the 12th Five Year Plan (2012-17).
The scheme will provide subsidy for investments in capital expenditure with a limit of 20 per cent for investments in Special Economic Zone and 25 per cent in non-SEZs.
The incentives will be given to investments made in a project within 10 years from the date of its approval.
The government has included 29 categories in ESDM sector that can avail benefit of under M-SIPS.
The Department of Electronics and Information Technology (DEITY) expects to attract investment worth Rs 25,000 crore in the electronics sector by end of financial year 2013-14.
Last year, the Cabinet had cleared the National Policy on Electronics 2012, which aims to make the domestic electronic hardware manufacturing segment into a USD 400-billion industry by 2020.
Under the policy, the government has set objective “to create an eco-system for a globally competitive ESDM (Electronic System and Design and Manufacturing) sector in the country to achieve a turnover of about USD 400 billion by 2020 involving investment of about USD 100 billion and employment to around 28 million people at various levels”.
Source-Times of india