M-SIPS: IT ministry may limit applications

According to the finance ministry, there was lack of clarity in M-SIPS, or Modified Special Incentives Package Scheme, over the quantum of subsidy to be disbursed.

By: ENS Economic Bureau | Mumbai | Published: September 9, 2016 1:52:10 am

The Ministry of Electronics and Information Technology may limit the number of applications it would accept every year under its M-SIPS scheme, after the finance ministry raised concerns over the program being open-ended in terms of financial incentives that would be provided to firms involved with domestic electronic manufacturing, a senior government official said.

According to the finance ministry, there was lack of clarity in M-SIPS, or Modified Special Incentives Package Scheme, over the quantum of subsidy to be disbursed. The framework provides a 20-25 per cent subsidy on capital expenditure to make domestic electronic manufacturing more attractive.

The finance ministry had sought for a limit to the outgo of subsidy that would be disbursed to the companies under the scheme, the official had said.

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