New Delhi: The union
cabinet Thursday approved a special incentive package to promote
large-scale manufacturing in the electronic system design and
manufacturing (ESDM) sector.
The scheme, called the Modified Special Incentive Package Scheme
(M-SIPS), provides subsidy for investments in capital expenditure
- 20 percent for investments in special economic zones (SEZs) and
25 percent in non-SEZs.
It also provides for reimbursement of excise for capital equipment
for the non-SEZ units. For high technology and high capital
investment units like fabs (semiconductor), reimbursement of
central taxes and duties is also provided.
"The policy is expected to create an indigenous manufacturing
eco-system for electronics in the country. It will foster the
manufacturing of indigenously designed and manufactured chips
creating a more cyber secure ecosystem in the country," the
communications and IT ministry said in a statement.
The incentives are available for investments made in a project
within a period of 10 years from the date of approval.
They are available for 29 category of ESDM products including
telecom, IT hardware, consumer electronics, medical electronics,
automotive electronics, solar photovoltaic, LEDs, LCDs, strategic
electronics, avionics and industrial electronics.