The electronics and IT ministry have approved 314 applications worth Rs 86,824 crore in expected investments under a modified special incentive package scheme through May 31, 2022, according to an official announcement. The bids that were approved in May included an investment of Rs 596 crore from Bosch Automotive Electronics Private Limited, according to the official notice dated June 24.
The M-SIPS (Modified Special Incentive Package Scheme) was introduced by the government in July 2012. It has undergone two amendments, in January 2017 and August 2015, and principally provides a 20–25 percent CAPEX subsidy.
The M-SIPS application window was shut on December 31, 2018.
M-SIPS was the government’s first initiative to court companies that manufacture electronics.
Samsung, LG, Bosch, Tejas Networks, Motherson Sumi Systems, Nidec India, Nippon Audiotronix, Continental Automotive, GE BE, and Wipro GE healthcare were among the initial contenders for the initiative for Electronics Manufacturers
The government has recently created production-linked incentive programs to attract global producers of mobile devices. In October 2020, it approved 16 proposals from domestic and international companies, resulting in an Rs 11,000 crore investment under the Production Linked Incentive (PLI) plan to manufacture mobile phones worth Rs 10.5 lakh crore over the succeeding five years.
These companies, which serve as contract manufacturers for Apple’s iPhone, also include Foxconn, Hon Hai, Wistron, and Pegatron in addition to Samsung and Rising Star. The bids submitted by the domestic companies Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), UTL Neolyncs, and Optiemus have been approved.
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