New Delhi, Jan 20 (KNN) With a view to flourish the electronic manufacturing in the country Government has amended the Modified Special Incentive Package Scheme (M-SIPS).

As per the scheme, the applications will be received up to or till such time that an incentive commitment of Rs 10,000 crore is reached, whichever is earlier, an official statement said.

The previous amendment in MSIPS in August 2015 had extended the scheme till July 27, 2020.

However, the government decided to cut down the application window to December 2018, to attract serious players and expedite projects, said an official from the Ministry of Electronics and Information Technology.

According to the statement, for new approvals, the incentive under the scheme will be available from the date of approval of a project and not from the date of receipt of application. The incentives will be available for investments made within five years from the date of approval of the project.

Approvals will normally be accorded to eligible applications within 120 days of submission of the complete application. A unit receiving incentives under the scheme have to provide an undertaking to remain in commercial production for a period of at least three years.

In the case of a single investment in excess of Rs 6,850 crore ($1 billion), a separate committee headed by the cabinet secretary would approve the proposal. M-SIPS provides a subsidy for capital expenditure - 20 per cent for investments in Special Economic Zones (SEZs) and 25 per cent in non-SEZs.

The Union Cabinet in July, 2012 approved the M-SIPS to provide a special incentive package to promote large scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector. The scheme has attracted investments in the ESDM sector to the tune of Rs 1.26 lakh crore, of which investments of around Rs 17,997 crore have been approved by the Ministry of Electronics and Information Technology. (KNN)