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Modified Special Incentive Package Scheme (M-SIPS)

Brie of the Scheme

In order to promote large scale manufacturing in the country, M-SIPS was announced by the Government in July, 2012 to offset disability and attract investments in Electronics System Design and Manufacturing (ESDM) Industries. The scheme provides incentive for investments on capital expenditure- 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.

The Scheme was revised vide notification dated 03-08-2015 which was further amended vide notification dated 30-01-2017.

The Scheme was closed to receive new application on 31 December, 2018.

Salient features of the scheme

The Scheme provides:

  • Capital Subsidy - 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs.
  • Incentives for both new units and expansion units.
  • Incentives for a period of 5 years from the date of approval of application.
  • Incentives for 44 categories/verticals across the value chain (raw materials including assembly, testing, packaging and accessories, chips, components).
  • Minimum investment threshold for each product category/ vertical (from Rs 1 crore for manufacturing of accessories to Rs 5000 crores for memory semiconductor wafer fabrication unit.
  • Unit to be in Industrial Area notified by Central/State Govt.

MSIPS Notifications

MSIPS notification in 2012

Modified Special Incentive Package Scheme (M-SIPS) was approved in July 2012. Initially, the scheme was opened to receive applications till 26-07-2015.

Revision of MSIPS in July, 2015

Under the “Digital India” Programme and the “Make in India” Programme, the scheme attained renewed vigor. Several new domestic and global majors entered into the field of electronics manufacturing in the country and submitted their investment proposals under the scheme.

For giving a big boost to electronics manufacturing in the country, the Cabinet in its meeting on 21-07-2015 revised the scheme with following changes. The notification was issued on 03-08-2015.

  • Extension of the scheme beyond July, 2015
  • Expansion of scope to cover 15 new product categories and
  • Simplification of procedures :The Government made it easier to receive benefits under the scheme namely, allowing M-SIPS incentives from the date of submission of application, allowing disbursement of incentives on a quarterly basis as against annual basis under the earlier scheme, dispensation of separate technical evaluation and allowing MSIPS in any part of the country as against only in notified areas etc.

Further amendments in January, 2017

To expedite the investments in the sector, the scheme was further amended vide notification dated 30-01-2017. Vide these amendments,

  • The incentives were made available for a period of 5 years from the date of approval of the project (instead of 10 years).
  • Applications to be received maximum till 31-12-2018.

Contact Person

Smt. Vandana Srivastava, Scientist-G vandana[dot]srivastava[at]meity[dot]gov[dot]in
Shri B R Jarodiya, Scientist E, bjarodiya[at]meity[dot]gov[dot]in
Shri Anil Kumar Yadav, Scientist C anil[dot]yadava[at]meity[dot]gov[dot]in
Shri Abhinav Sharma, Scientist C abhinav[dot]sharma[at]meity[dot]gov[dot]in
Shri Ashish Kumar, , Scientist B ashish [dot]mishra 89[at]meity[dot]gov[dot]in

 

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MSIPS Notifications:

MSIPS Guidelines

Other Notices/Orders/Circulars