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Govt Approves Proposed Investments of Rs 86,824 Crore for Electronics Manufacturing

The Ministry has approved a total of 314 applications for investment in Electronics and IT, Government of India. The revised special incentive package scheme has provided Rs 86,824 crore as of May 31, an official note said.

The proposal approved in May included an investment of Rs 596 crore from Bosch Automotive Electronics Private Limited, an official note on June 24 said.

“As of May 31, 320 applications for investment with an investment value of Rs 89,232 crore are under consideration. Of these 320 applications, 314 applications were approved with an investment value of about Rs 86,824 crore,” the official document said.”

The government announced the M-SIPS (Modified Special Incentive Package Scheme) in July 2012 and revised it twice in August 2015 and January 2017, mainly providing a 20-25% CAPEX subsidy. The application window for M-SIPS was closed on December 31, 2018.

“As of May 31, incentive payments of Rs 1,774.47 crore have been paid to 114 applicants,” the document said.
M-SIPS is the government’s first program to attract electronics manufacturing companies.

Samsung, LG, Bosch, Tejas Networks, Motherson Sumi Systems, Tata Power SED, Nidec India, Nippon Audiotronix, Continental Automotive, GE BE and Wipro GE Healthcare are initial applicants for the program. The government is now offering production-related incentives to attract global mobile device manufacturers.

In October 2020, 16 proposals for investments of Rs 20 million by domestic and foreign companies were approved and invested Rs 11,000 crore under the Production Linked Incentive (PLI) scheme to manufacture mobile phones. It will reach 10.5 billion in the next five years.

In addition to Samsung and Nova, the companies include Foxconn, Hon Hai, Wistron and Pegatron, contract manufacturers for iPhone maker Apple. Domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), UTL Neolyncs and Optiemus.

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