Question : MSIPS

Will the Minister of ELECTRONICS & INFORMATION TECHNOLOGY be pleased to state:-

(a) whether the Modified Special Incentives Package Scheme (MSIPS) is being used to attract investments in electronics design and manufacturing segment and to provide subsidy of 20 per cent on investments in special economic zone and 25 per cent for non-SEZ zone;
(b) if so, the funds allocated by the Central Government for MSIPS and Electronic Manufacturing Clusters (EMCs) during the last three years and the current year;
(c) the total investment proposals received by the Central Government of India under MSIPS for electronics manufacturing in the country and the present status thereof;
(d) whether the Ministry of Electronics and IT is facing shortage of funds needed for disbursement of incentives promised under its various schemes to boost electronic manufacturing in the country;
(e) if so, the details thereof;
(f) whether the Ministry has calculated the amount likely to be required for disbursement of subsidies in the financial year 2018- 19; and
(g) if so, the details thereof and the manner in which it will be arranged?

Answer given by the minister

(a) and (b): Yes, Sir, To offset disability and attract investments in Electronic manufacturing, Modified Special Incentive Package Scheme (M-SIPS) was launched by the Ministry in July 2012. The scheme provides subsidy of 20% for investments in capital expenditure in Special Economic Zone ( SEZ ) and 25% in non-SEZ zone for setting up of new electronic manufacturing facility or expansion of the existing electronic manufacturing facility. M-SIPS incentives are available in any industrial area notified by Centre/ State/ local authorities across the country. The incentives are available for 44 categories of electronic products and product components.The scheme was opened to receive applications till 31st December 2018.

The details of funds allocated by the Central Government for MSIPS and Electronic Manufacturing Clusters (EMCs) during the last three years and the current year are given as under:

Financial Year Allocated budget for MSIPS (Rs. in crore ) Allocated budget for EMC (Rs. in crore )
2015-16 15 NA
2016-17 15 19
2017-18 136.86 210
2018-19 450 230

(c): The status of applications under the scheme is as follows: As on 31 January 2019, 419 investment proposals involving investment of Rs. 1,13,089 crore are under consideration. Out of these 419 applications, 197 applications with proposed investment of approximately Rs. 41,790 crore have been approved; 19 applications with proposed investment of approximately Rs.14,764 crore have been recommended by the Appraisal Committee and are under process of approval; 203 applications with proposed investment of approximately Rs 56,534 crore are under appraisal.

(d) and (e): No, Sir.

(f) and (g): Yes, Sir. Budget of Rs. 500 crore was provided for the FY 2018-19 which has been revised to Rs. 450 crore subsequently. So far, Rs. 251.76 crore has been disbursed against 35 disbursement claim applications. Remaining amount of Rs. 198.24 crore is likely to be spent by March, 2019.

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