Electronics manufacturing sops capped at Rs 10k crore

Ravi Shankar Prasad. Express Photo

Applications made under the modified special incentive package scheme (MSIPS) will be limited after the Union Cabinet on Wednesday approved amendments to the scheme, which cut down the application window by over one-and-a-half year and capped the outflow at Rs 10,000 crore.

The scheme intends to boost electronics manufacturing in the country, and the amendments approved by the Cabinet are expected to fast track investments in the sector. As per the previous amendment made to MSIPS in August 2015, the applications could be made till July 27, 2020.

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Even as for investments over $1 billion (or Rs 6,850 crore), the scheme will have a caveat. “Incentives of Rs 10,000 crore have been allowed. If investment is more than of $1 billion, then a high-powered committee presided by the Cabinet secretary will approve it,” Minister of Electronics and Information Technology Ravi Shankar Prasad told reporters after the Cabinet meeting.

Other than the Cabinet secretary, the said committee will comprise chief executive officer of Niti Aayog, and secretaries of expenditure and information technology.