Motivations, News

Special Incentive Package Scheme

Government of India

Ministry of Communications & Information Technology Department of Information Technology

Seeking new investment proposals under Special Incentive Package Scheme (SIPS) announced by the Government of India ..

Department of Information Technology, Government of India, invites new investment proposals under the ‘Special Incentive Package Schemes’ (SIPS). A Special Incentive Package Scheme (SIPS) to encourage investment for setting up of semi-conductor fabrication and other micro and nano-technology manufacturing Industries in India was notified on 21 st March 2007 and can be viewed at link: http:/

Under the Scheme, the Government of India will provide a package of incentives for investment in the manufacture of all semi-conductor manufacturing (Fab units) products (threshold NPV of investment for availing incentives: Rs. 2500 crore and above) and eco­system units, namely, displays including Liquid Crystal Displays (LCD), Organic Light Emitting Diodes (OLED), Plasma Display Panels (PDP), any other emerging displays; storage devices; solar cells; Photovoltaic; other advanced micro and nano technology products; assembly and test of all of the above products (threshold NPV of Investment for availing incentives: Rs. 1000 crore and above).

Under the Scheme, Central Government or any of its agencies shall provide incentive of 20% of the capital expenditure during the first 10 years for the units located in SEZ (and 25% for non-SEZ units). The incentives, if any, offered by the State Government or any of its agencies or local bodies shall be over and above this amount. Units in Non­SEZ locations shall be exempted from CVD.

Any unit may claim incentives in the form of capital subsidy or equity participation

in any combination of the following:-

(i) equity in the project, not exceeding 26%.

(ii) capital subsidy in the form of investment grant and interest subsidy.

The entire equity contribution will be taken towards the value of incentive package.

There shall be an exit option, to be exercised by the Government, at a suitable point of time in the future, after the project goes on stream.

Complete details of the incentive package may be viewed at link http:/ The guidelines for operation of the scheme can be viewed at link The period of validity of SIPS is upto 31 st March, 2010.

Though Government of India has received a number of investment proposals, this advertisement is being issued for the benefit of potential investors who may not be aware of the incentives being made available under SIPS. While the Scheme is open till 31st March 2010, fresh proposals are invited preferably before 31st December 2009 to facilitate early appraisal. Those who have submitted proposals earlier need not re-apply.

Any further details/clarifications may be sought from Dr. Debashis Dutta, Senior Director, Department of Information Technology (Tel: 011-24364321, e-mail:


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