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Cabinet approves incentive schemes for electronics, pharmaceuticals manufacture

Our Bureau New Delhi | Updated on March 21, 2020 Published on March 21, 2020

Expenditure for reimbursing losses under MSP for cotton approved

 

 

To boost the production of life saving medicines and electronics in the country, the Union Cabinet has approved production-linked investment schemes for the manufacturing of drug intermediates, Active Pharmaceutical Ingredients (API) as well as mobile phones and specified electronic components.

The Cabinet, which met on Friday, also approved expenditure for reimbursing the losses under MSP operations for cotton during the last five cotton years and inclusion of the AYUSH Health & Wellness Centres component of Ayushman Bharat in the National AYUSH Mission.

A total of Rs 40,995 crore will be spent over the next five years under the production linked investment scheme for the electronics sector which is linked to production and investments made in India, said Ravi Shankar Prasad, Union Minister for Communications and IT, at a briefing for media persons on Saturday.

 

“We want big companies to come to India and invest. Whatever they will invest and the incremental sale that they make, we will give an incentive of 4-6 per cent. We also want to turn India’s three-four companies into champion companies,” Prasad said.

The Government has also approved a scheme for promotion of electronic components and semiconductor under which 25 per cent incentive will be given on capital expenditure.

Additionally, the Government will also promote manufacturing clusters for electronics which will be centred around one big company and associated value chain companies to make a final big product, Prasad said.

The three schemes together could lead to additional manufacturing of Rs 20 lakh crore by 2025 and create 20 lakh jobs, said the Minister.

The Production Linked Incentive scheme for promotion of domestic manufacturing of 53 critical drug intermediates and APIs in the country will have a financial implication of Rs 6,940 crore for next eight years, said Mansukh Mandaviya, Minister of State for Chemical and Fertilisers.

The scheme will be implemented through a Project Management Agency to be nominated by the Department of Pharmaceuticals.

The Cabinet also approved a scheme on promotion of Bulk Drug Parks for financing Common Infrastructure Facilities in three Bulk Drug Parks with financial implication of Rs 3,000 crore for next five years.

The Cabinet Committee on Economic Affairs (CCEA) approved to incur an expenditure of Rs 312.93 crore and an additional expenditure of Rs 748.08 crore under revenue head for reimbursing the losses to CCI and MSCCGMFL on sale of cotton procured under MSP operations during the cotton years (October to September) 2017-18 and 2018-19.

“The approval will help in price support operations of cotton which helps in stabilizing cotton prices and is primarily aimed to safeguard the interests of the farmers and controlling any distress sale,” according to an official release.

Published on March 21, 2020
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