Government gets 1st application for M-SIPS; Bosch to invest Rs 550 crore

NEW DELHI: The government today said it has received the first application under the Modified Special Incentive Package Scheme ( M-SIPS) entailing an investment of about Rs 550 crore from Bosch Electronics.

"Bosch company has given the first application... It has assured to invest more than Rs 500 crore in automotive electronics," Minister of Communications and IT Kapil Sibal told reporters here.

Sibal, who chaired a round table on the electronics system design and manufacturing ( ESDM) sector here said he will visit countries such as USA, Japan and South Korea in next couple of months to organise road shows for the scheme.

Under the M-SIPS, the government will provide up to Rs 10,000 crore in benefits to the industry during the 12th Five Year Plan period (2012-17) for promoting production of electronics products and components in India.

The scheme will provide subsidy for investments in capital expenditure with a limit of 20 per cent for investments in Special Economic Zone and 25 per cent in non-SEZs.

"The company (Bosch) will invest of about Rs 556 crore for expanding its facilities in Bangalore, so we are hoping that this kind of efforts will multiply as we go forward," Department of Electronics and IT ( DEITy) Secretary J Satyanarayana said.

Under M-SIPS, investors will get reimbursement of Countervailing Duties and excise for capital equipment for units set-up outside SEZ.

The incentives will be given to investments made in a project within a period of 10 years from the date of its approval.

The government has included 29 categories in ESDM sector that can avail benefit of this M-SIPS.

In order to avail the incentives under the scheme, companies can send their applications to DeitY before July 26, 2015.