India: Approves amendment in modified special incentive package Scheme

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On 18 January 2017, the Indian Union Cabinet has given its approval for amendment in the Modified Special Incentive Package Scheme (M-SIPS) to further incentivize investments in Electronic Sector and moving towards the goal of ‘Net Zero imports’ in electronics by 2020.

The proposed amendment seeks to further incentivize investments in the electronic sector and will help India in achieving the goal of Net Zero Imports in Electronics by 2020.

The significant features of the modification are:

-The applications will be received under the Modified Special Incentive Package scheme up to 31st December 2018 or till such time that an incentive commitment of Rs 10,000 crore is reached, whichever is earlier.

– For new approvals, the incentive under the scheme will be available from the date of approval of a project and not from the date of receipt of application.

-The incentives will be available for investments made within 5 years from the date of approval of the project.

-Approvals will normally be accorded to eligible applications within 120 days of submission of the complete application.

-A unit receiving incentives under the scheme will provide an undertaking to remain in commercial production for a period of at least 3 years.

-The Appraisal Committee recommending approval of the project will be chaired by Secretary, Ministry of Electronics and IT.

-The proposed committee will have the CEO, NITI Aayog, Secretary Expenditure and Secretary, Ministry of Electronics and Information Technology (MeitY) as its members.

-The scheme covers all States and districts and provides them with an opportunity to attract investments in electronics manufacturing.

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