The government has received over Rs 1 lakh crore investment proposals for manufacturing in the electronics sector. Communications and IT minister Ravi Shankar Prasad said that “We are promoting electronic cluster in a big way since last 14 months and have received investment proposals of Rs.1.07 lakh crore till now”
Prasad further said that the government is promoting electronic clusters which will provide full eco-system to make certain products and states are competing with each other for setting them up. For the electronic clusters government provides assistance of up to 50 per cent of the project cost for new EMC which is subject to a ceiling of Rs 50 crore for 100 acres of land. For larger areas, pro-rata ceiling applies. As of July this year, government has approved two greenfield EMCs and accorded in-principle approval to 16 and three Common Facility Centres in brownfield clusters under the scheme.
The government also plans to give lot of incentives to the investors under Modified Special Incentive Package Scheme. The Modified Special Incentive Package Scheme provides subsidy for investments in capital expenditure which is 20 per cent for investments in special economic zones (SEZs) and 25 per cent in non-SEZs. It also provides for reimbursement of countervailing duty or excise for capital equipment for the non-SEZ units. Besides, for setting up electronic chip manufacturing unit, government is allowing 200 per cent deduction on expenditure on research.
The minister further said that the government's 'Make in India programme' for the domestic market as also for exports is the essence of Digital India initiative, and appealed to stakeholders to make India hub for all kind of manufacturing. The minister noting that electronics manufacturing space has huge potential for employment generation has said that seven institutes of IT and electronics will be set up so that there is good human resource to supplement need of workforce in electronic manufacturing.
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