Electronics sector to get special incentives | SupportBiz

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Electronics sector to get special incentives

 
The Union Cabinet has approved a special incentive package to promote large-scale manufacturing in the electronic system design and manufacturing (ESDM) sector. The scheme, called the Modified Special Incentive Package Scheme (M-SIPS), provides subsidy for investments in capital expenditure - 20 percent for investments in special economic zones (SEZs) and 25 percent in non-SEZs.

It also provides for reimbursement of excise for capital equipment for the non-SEZ units. For high-technology and high-capital investment units like fabs (semiconductor), reimbursement of central taxes and duties is also provided.

"The policy is expected to create an indigenous manufacturing eco-system for electronics in the country. It will foster the manufacturing of indigenously designed and manufactured chips, creating a more cyber secure ecosystem in the country," the Communications and IT Ministry said in a statement.

The incentives are available for investments made in a project within a period of 10 years from the date of approval.

They are available for 29 category of ESDM products - including telecom, IT hardware, consumer electronics, medical electronics, automotive electronics, solar photovoltaic, LEDs, LCDs, strategic electronics, avionics and industrial electronics.