Make in India: Government gets proposals worth Rs 1.10 lakh crore under MSIPS

NEW DELHI: The government has received investment proposals worth about Rs 1.10 lakh crore in the last 12 months under the electronics manufacturing scheme MSIPS.

"Investment proposals worth Rs 1,10,000 crore have been received in the electronics sector in the last one year," Additional Secretary, Ministry of Communications and Information Technology, Ajay Kumar said.

He was speaking during a conference on ' Make in India: Bright Prospects of LED Manufacturing' organised by PHD Chamber of Commerce and Industry here.

Kumar added India has also been able to receive electronics manufacturing proposals from 20-25 overseas companies, and domestic companies that had no exposure to the sector, have also begun to diversify into it in view of its potential.

He said the electronics development fund ( EDF) will also become operational from next month to support venture capitalists to fund electronic manufacturing in general and LED in particular.

"The cabinet approval for the EDF has been obtained recently by the Ministry of Communications and Information Technology and a leading financial institution is being identified through which the EDF disbursements would be made," Kumar added.

He however did not disclose the size of EDF, pointing out that it would be totally market driven, depending upon the involvement of venture capitalists and its fund disbursement should take place following suggestions from the lead financial institutions.

The government had earlier visualised its size to be roughly at Rs 10,000 crore.

The Cabinet had last month extended MSIPS scheme by five years and also expanded the scope of the programme to cover 15 new product categories.

The scheme was originally approved by the government in July, 2012. It provides capital subsidy of 20 per cent in SEZ or 25 per cent in non-SEZ units engaged in manufacturing of electronics items. The original scheme was for three years.