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Consulting Services for M-SIPS Incentives


We are known to provide excellent Consulting Services for M-SIPS Incentives. Our diligent team of professionals provides complete M-SIPS consultancy, preparation of detailed project report and services for availing M-SIPS incentives for the eligible entrepreneurs.

More about M-SIPS Incentives : Department of Electronics, Information & Technology (DeitY) has introduced Modified Special Incentive Package Scheme (M-SIPS) which was notified in Gazette of India in July 2012 vide notification no. 175 and further extended the scheme for another 5 years vide notification dated 03th Aug-2015. Detailed Guidelines for operation & realisation of Incentives under M-SIPS are available at www.deity.gov.in .

MSIPS is investment based scheme for Electronics & White Goods electronics assembling, manufacturing units those are proposing tp establish New manufacturing facilities or going for expansion or modernization of existing unit. The financial incentives under the scheme are as under:

  • MSIPS scheme ensure Incentive of 25% of capital expenditure if the ESDM unit is in non-SEZ and Incentive of 20 % of capital expenditure if the ESDM unit is within SEZ. This capex subsidy/Incentive is available for investments made within 10 years from the date of approval of the project.
  • MSIPS scheme ensure Reimbursement of CVD/excise duty paid on capital equipment for non-SEZ units.
  • Reimbursement of central taxes and duties (like custom duties, excise duties and service tax) for 10 years in select high- tech units like fabs, Semiconductor Logic and Memory chips, LCD fabrication.


List of Eligible verticals, their minimum threshold and proposed incentives details are as below

S. No. Type Financial Incentives
SEZ Non-SEZ
1.1 Telecom product : Optical Fiber and Optical Fiber cables, Headends 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.2 IT Hardware products: Automatic Teller Machines( ATM),etc 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.3 Consumer Electronics: Audio video products, electronic watches and clocks, electronic toys , wearable electronics, electronic personal care products etc 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.4 Automotive Electronics : Brushed DC Motors etc 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.5 Bio-metric and identity devices/RFID : Smart Card Manufacturing and Personalization 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.6 Consumer Appliances like Refrigerators , A/cs , Fully Automatic washing Machine ,Microwave Ovens etc 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.7 Electronic products design including PCB design 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.8 Machine to Machine (M2M) and internet of things (LOT) products 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.9 Home fuel cells 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.1 Multi functional electronic devices 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.11 Semiconductor Equipment such as Automatic test Handler , pick & Place Machines, Test Head Manipulator and their accessories 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
1.12 Electronic security devices- including CCTV/ surveillance equipment, CCTV equipment, CCTV , Access control , intruder alarms etc 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
2 Intermediates
2.1 Nano Electronic Components 20% of Capex + 10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
2.2 Semiconductor Wafering 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
2.3 Semiconductor Chips
a) Logic – Microprocessors, Microcontrollers, Digital signal processor (DSP) & Application Specific Integrated Circuits (ASICS) 20% of Capex + 10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
b) Analog /Mixed signal 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
c) Memory 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
2.4 Chip Components, Discrete Semiconductors and Power Semiconductors:
a) Polysilicon Technology:
i) Polysilicon 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
ii) Ingots and/ or wafers 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
iii) Cells 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
iv) Modules/ Panels 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
2.6 Light Emitting Diodes (LED) 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
    20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
2.7 Organic Light Emitting Diodes(OLED) 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
2.8 Chip Modules for Smart Cards 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
2.9 Liquid Crystal Displays (LCD):
a) LCD Fabrication 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
b) LCD Glass Substrate 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
c) Liquid Crystal Module (LCM) 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
2.10 Passive Components, Electro - Mechanical Components, Mechanicals Parts and Consumables & Accessories:
a) Passive Components such as Resistors, Capacitors, Inductors, Thermistors etc. 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
b) Electromechanical Components and Machanical parts such as Transformers, colls connectors, swiches, Ferrites, Micro Motors, stepper Motors, films, smalls precision plastic and metal parts, tools, Moulds & Dies etc. 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
c) Printed Circuit Boards 20% of Capex +10% of production subsidy on production turnover( Ex. Factory) 25% of Capex + Reimbursement of Excise/CVD on capital equipment + 10% of production subsidy on production turnover( Ex. Factory)
d) Consumables and Accessories such as Mobile Phones and IT accessories - Batteries, Chargers etc., PCBs, Foils, Tapes, Epoxy, Cabinets etc. 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
3 Electronic Manufacturing Services (EMS) 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
4 Capital equipment for electronic products 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
5 Raw materials exclusively for electonic products 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
6 Bio -matric and identify products/ RFID/ smart card manufacturing and personalization 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment
7 Remanufacturing of electronic products 20% of Capex 25% of Capex + Reimbursement of Excise/CVD on capital equipment

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