In a major development for electronics manufacturing space, the government has approved clutch of investment proposals worth about Rs 6,000 crore in the past six months under electronics manufacturing schemes. However, this sums up to about 1/3 rd of the proposal received by the government, most of which were financial closures.
According to reports, while the government last year, only received proposals from the companies that were present in India, but in these last six months received proposal from both existing and new firms. Among the many, companies like Nidec, Continental, Motherson Sumi, Calsonic Kansei, Tissol, Tata SED, Tejas, Panasonic, were the ones which came with the proposal.
Expressing confidence in electronics manufacturing push of the Indian government, about 25-30 new companies across various segments and geographies tendered their proposals. The confidence was further boosted by the Reimbursement of Modified Special Incentive Package (MSIPS), benefit by the government.
Under Modified Special Incentive Package (MSIPS), government provides subsidy for investments in capital expenditure with a limit of 20 per cent for investments in Special Economic Zone (SEZ) and 25 per cent in non-SEZs.