Rs. 75,000 crore electronics manufacturing projects to be approved
As per reports by DNA Money, two major electronics manufacturing projects worth Rs. 75,000 crore, will soon see the light of day as Ministry of Electronics and Information Technology (MeitY) is close to approving them under its modified special incentive package (MSIP) scheme.
The ministry is also planning to request the government for increasing cap on subsidy provided to MSIPs.
MeitY to approve Rs. 75,000-crore electronics manufacturing projects
Goals set by MeitY
MeitY has set the goal of zero net imports in the electronics sector by 2020 and is currently witnessing a large number of investment proposals. The current cap on subsidy for MSIP is fixed at Rs. 10,000 crore which the ministry seeks to increase.
Investments received by MeitY for MSIP scheme
At least 248 applications with investments of nearly Rs. 145,030 crore have been received. Out of this, only 87 proposals worth Rs. 19,440 crore have been approved.
Meanwhile, another 121 projects worth Rs. 24,304 crore are under evaluation and nearly 12 projects worth Rs. 784 crore have been recommended for approval.
Over 51 applications, with investment proposal for Rs. 38,253 crore have been rebuffed.
Love Business news?
Stay updated with the latest happenings.
MSIP gets approval for providing special incentive package
The MSIP was approved to provide a special incentive package to promote large scale manufacturing in the electronic system design and manufacturing (ESDM) sector in June 2012.
The scheme provided a subsidy for capital expenditure: 20% for investments in special economic zones (SEZs) and 25% in non-SEZs.
In August 2015, the scheme was amended for scope enhancement and simplified procedures.
Rs. 35 lakh crore investments expected over next 5-10 years
Mentioning the growth in this sector, Minister for Electronics and IT Ravi Shankar Prasad said, "We expect $500 billion (Rs 35 lakh crore) investments in the next 5-10 years and would generate around three crore jobs."
Going by the statistics, electronics manufacturing sector will see a tremendous boost in future.
PM Modi to meet state chief secretaries to push development
Republic TV can use 'the nation wants to know' phrase