M-SIPS: Special incentive package for ESDM sector
ESSDM-Electronic System Design and Manufacturing
The Union Cabinet approved the proposal to grant a special incentive package to encourage large-scale manufacturing in the ESDM sector.
It will promote the manufacturing of indigenously designed and manufactured chips building a more cyber secure network in the country.
- The scheme is named the Modified Special Incentive Package Scheme (M-SIPS).
It will facilitate India to utilize huge economic potential that this knowledge segment offers. The increased development and manufacturing in the sector will convert into greater economic growth through more manufacturing and thereby generating greater employment in the sector.
The scheme gives subsidy for investments in capital expenditure – 20 % for investments in Special Economic Zones (SEZs) and 25 % in non-SEZs. The incentives are provided for investments made in a project within a period of 10 years from the date of approval.