Vadodara among 7 cities GoI identifies for electronic manufacturing

New Delhi, 17 June, 2014

The government of India will offer incentives including subsidy in eight cities including Vadodara to set up electronic manufacturing facilities. The government will promote chip-making facilities in the country and set up seven greenfield electronic manufacturing clusters.

Under the Modified Special Incentive Package Scheme (M-SIPS) notified in July 2012, refunds will be provided on capital expenditure for new units or for expansion of more than 25 per cent of existing capacity in certain greenfield or brownfield electronics manufacturing clusters.

“We have selected eight new areas for M-SIPS. We have selected Ghaziabad, Vadodara, Ahmedabad, Gandhinagar, Nagpur, Nasik, Aurangabad and Thane…If someone sets up an electronic manufacturing facility here, they will be given subsidy,” Technology Minister Ravi Shankar Prasad said.

He said, “Electronic manufacturing is going to be the key area of my priority…It is very much employment-based sector. We can give employment to 2.8 crore people.”

The scheme covers production of products across the value chain from raw material, components, design & chip, assembly, testing, R&D and packaging. The government has allocated Rs 10,000 crore for M-SIPS in the 12th Five-Year Plan.

Besides, the government will also promote chip-making facilities in the country. The government approved the setting up of two semiconductor wafer fabrication (fab) manufacturing facilities in the country in February.

“Promoting semiconductor fab facility is very important. We have decided that we will promote fab manufacturing facility,” he said.