The Electronics and IT Ministry has approved a total of 314 applications with proposed investments of Rs 86,824 crore under a modified special incentive package scheme till May 31, 2022, including investment of Rs 596 crore from Bosch Automotive Electronics Private Limited.
The Modified Special Incentive Package Scheme (M-SIPS) was announced by the government in July 2012. It has been amended twice – in August, 2015 and in January, 2017, and mainly provides a capex subsidy of 20-25 percent.
M-SIPS was the first scheme under which the government wooed 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 were the initial applicants for the scheme.
In October 2020, the government cleared 16 proposals from domestic and international companies requiring investment of Rs 11,000 crore under the Production Linked Incentive (PLI) scheme to manufacture mobile phones worth Rs 10.5 lakh crore over the next five years.
The companies include iPhone maker Apple’s contract manufacturers Foxconn Hon Hai, Wistron and Pegatron, apart from Samsung and Rising Star. Domestic companies whose proposals have been approved include Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), UTL Neolyncs and Optiemus.
