Clarifications regarding multiple products in single application
Sunday, January 26, 2014: The Department of electronics and Information Technology (DeitY), Government of India, has recently made amendments to the guidelines for Modified Special Incentive Package scheme (MSIPS) to offset disability and attract investments in electronics system design and manufacturing (ESDM) industry.
As per the new modification, “A project proposed under the scheme may include one or more electronic products in a single initial application. In case the same manufacturing set up/production line is used for manufacturing more than one electronic products falling under verticals with different thresholds, the applicable threshold would be of the vertical which has the highest threshold. However, if the manufacturing set up for the proposed products are significantly different, the applicable threshold would be sum of thresholds required to manufacture each of the products separately.”
Launched in 2012, MSIPS is an investment based scheme that provides financial incentives such as 25 per cent of capital expenditure if the ESDM unit is in non-SEZ and 20 per cent if it is within SEZ. This subsidy is available only for investments made within 10 years from the date of approval of the project. The government has allocated Rs 100,000 million for 12th FYP for MSIPS scheme. The scheme is open for all initial applications which are received by DeitY on or before 26-07-2015.
