M-SIPS: IT ministry may limit applicationshttps://indianexpress.com/article/business/business-others/m-sips-it-ministry-may-limit-applications-3021131/

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.

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.