The government has approved 314 applications with proposed investments of ₹86,824 crore under modified special incentive package scheme (M-SIPS) till May 31.
According to an official note dated June 24 from the Ministry of Electronics and Information Technology (MeitY), the proposals that were approved in May included an investment of ₹596 crore from Bosch Automotive Electronics.
“As on May 31, as many as 320 applications with proposed investment of ₹89,232 crore are under consideration. Out of these, 314 applications with proposed investment of approximately ₹86,824 crore have been approved, four applications with proposed investment of approximately ₹315 crore have been recommended by the appraisal committee for approval, and two applications with proposed investment of ₹2,093 crore are under appraisal,” it said.
As on May 31, incentives of ₹1,774.47 crore have been disbursed to 114 applicants, it added.
What is M-SIPS?
M-SIPS was announced by the government in July 2012. It has been amended twice – in August 2015 and in January 2017 — and mainly provides a capex subsidy of 20-25 per cent. The application window for M-SIPS was closed on December 31, 2018. Companies including Samsung, LG, Bosch, Tejas Networks, Motherson Sumi Systems, Tata Power SED, Nidec India, Nippon Audiotronix, Continental Automotive, GE BE and Wipro GE healthcare were the initial applicants for the scheme.
M-SIPS was the first scheme to promote local manufacturing and the government has now come up with the production-linked incentive (PLI) schemes in an attempt to woo global companies to ‘Make in India for the World’.
In October 2020, it cleared 16 proposals from domestic and international companies entailing investment of ₹11,000 crore under the PLI scheme to manufacture mobile phones worth ₹10.5-lakh crore over the next five years. Some of the companies include Apple’s contract manufacturers Foxconn Hon Hai, Wistron and Pegatron, apart from Samsung and Rising Star. Domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), UTL Neolyncs and Optiemus.