Extending the Modified Special Incentive Package Scheme (MSIPS) by five years would help in attracting investment in the electronics sector, industry said today.
To boost manufacturing of electronics items, the government had extended M-SIPS by five years and also expanded the scope of the programme to cover 15 new product categories.
The decision was taken at the meeting of the Cabinet, headed by Prime Minister Narendra Modi, to promote 'Make In India' and 'Digital India' initiatives.
The scheme which was announced on July 27, 2012 had validity period of three years and was due to expire on the 26th July 2015. Under the scheme, incentives were extended to new electronics system design and manufacturing units and expansion, modernisation and diversification of the existing units.
Welcoming the move, CII said allowing the incentive from the date of submission of application would result in faster implementation of projects.
"The extension of MSIPS would provide a big boost to attracting investments in the electronics design and manufacturing," it said in a statement.
Exporters body FIEO said the move would help nascent industry to scale up domestic manufacturing and reduce dependence on imports.
"With the focus on manufacturing at present, the scheme has attracted 32 proposals committing investment of Rs 9,000 crore in the last 14 months as against an investment of Rs 1,369 crore since its inception in 2012," FIEO said in a statement.
