The last date for submission of applications under M-SIPS is July 27, 2015. All interested business houses are required to submit their applications before this date to avail the stipulated benefits
By Anwesh Koley
It is widely known that despite having the necessary resources and expertise in the field of software development and chip design, the domestic ESDM industry is trailing behind many countries with similar potential. This can be attributed to the lack of infrastructure, the unavailability of funds, a complex policy structure for project approvals and the high transaction costs. To address these key bottlenecks, the Department of Electronics and Information Technology (DeitY) had announced the Modified Special Incentive Package Scheme (M-SIPS) in July 2012 to attract investments into the ESDM industry and enable this crucial sector to become financially viable.
Among the numerous guidelines and clauses, the notification from DeitY stated that applications from industry stakeholders would be accepted for three years from the date this notification was issued (July 27, 2012). This July, the three years since this notification was announced will be completed. So, DeitY has issued a circular to the ESDM industry (and specifically to companies interested in availing the benefits of this scheme), which gives the deadline for submitting applications as on July 27, 2015.
Industry reports suggest that the applications for this scheme have witnessed a significant rise with a nine-fold jump recorded between January and February 2014, as well as in the corresponding period in 2015. DeitY maintains a dedicated portal (www.msips.in) to facilitate the filling of applications, which contains a lucid step based format for easy access and submission.
Experts feel that the commendable surge witnessed in applications for M-SIPS has much to do with the ‘Make in India’ initiative of the Central government, which is going all out to provide a significant boost to the domestic manufacturing sector, of which, electronics forms a substantial revenue- and employment-generating segment. These incentives, coupled with the basic declaration of a 20-25 per cent subsidy on capital expenditure for ESDM companies, have emerged as a strong driver for the electronics industry.
For more information Please visit: www.msips.in
