Modified Special Incentive Package Scheme (M-SIPS)
18-Jan-2017: Cabinet approves amendment in Modified Special Incentive Package Scheme.
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for amendment in the Modified Special Incentive Package Scheme (M-SIPS) to further incentivize investments in Electronic Sector and moving towards the goal of ‘ Net Zero imports’ in electronics by 2020.
Besides expediting investments into the Electronics System Design and Manufacturing (ESDM) sector in India, the amendments in M-SIPS are expected to create employment opportunities and reduce dependence on imports. The projects already received under the scheme have the potential to generate employment to the extent of upto one million persons (direct and indirect).
The Policy covers all States and Districts and provides them an opportunity to attract investments in electronics manufacturing. So far, 243 applications have been received under the scheme, out of which 75 applications have been approved involving investment proposals of Rs. 17,997 crore.
The salient features of the amendment are:
- The applications will be received under the scheme upto 31st December 2018 or till such time that an incentive commitment of Rs 10,000 crore is reached, whichever is earlier. In case the incentive commitment of Rs 10,000 crore is reached, a review will be held to decide further financial commitments.
- For new approvals, the incentive under the scheme will be available from the date of approval of a project and not from the date of receipt of application.
- The incentives will be available for investments made within 5 years from the date of approval of the project.
- Approvals will normally be accorded to eligible applications within 120 days of submission of the complete application.
- A unit receiving incentives under the scheme, will provide an undertaking to remain in commercial production for a period of at least 3 years.
- The Appraisal Committee recommending approval of project will be chaired by Secretary, Ministry of Electronics and IT.
- A separate Committee headed by Cabinet Secretary and comprising of CEO, NITI Aayog, Secretary Expenditure and Secretary, MeitY will be set up in respect of mega projects, envisaging more than Rs. 6850 crore (approx. USD 1 Billion) investments.
Background
The Cabinet had, in July, 2012 approved the M-SIPS to provide a special incentive package to promote large scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector. The scheme provides subsidy for capital expenditure - 20% for investments in Special Economic Zones (SEZs) and 25% in non-SEZs. The Scheme was amended in August, 2015 for scope enhancement and simplification of procedure. The Scheme has attracted investments in the ESDM sector to the tune of Rs. 1,26,838 crore, of which investments of around Rs. 17,997 crore have been approved by the MeitY. The M-SIPS has been able to create positive impact on investment in electronics sector.
General Anti-Avoidance Rule (GAAR)
8-Jan-2017: General Anti-Avoidance Tax Rule to kick in from April 2017.
The tax department has clarified that tax anti-avoidance rule GAAR will kick in from April 1 in India. GAAR, which was originally to be implemented from April 1, 2014, will now come into effect from April 1, 2017 (Assessment Year 2018-19).
Coalition for Epidemic Preparedness Innovations (CEPI)
18-Jan-2017: Global partnership launched to prevent epidemics with new vaccines.
A global coalition to create new vaccines for emerging infectious diseases, designed to help give the world an insurance policy against epidemics was recently launched at the World Economic Forum in Davos, Switzerland. The coalition is named- Coalition for Epidemic Preparedness Innovations.
CEPI, Coalition for Epidemic Preparedness Innovations, is a “public-private coalition that aims to derail epidemics by speeding development of vaccines”. With an initial investment of US$460m, CEPI – the Coalition for Epidemic Preparedness Innovations will seek to outsmart epidemics by developing safe and effective vaccines against known infectious disease threats that could be deployed rapidly to contain outbreaks, before they become global health emergencies.
CEPI will initially target the MERS-CoV, Lassa and Nipah viruses, which have known potential to cause serious epidemics. It aims to develop two promising vaccine candidates against each of these diseases before any epidemic, so these are available without delay if and when an outbreak begins. CEPI will also scope out potential support for vaccines against multiple strains of the Ebola and Marburg viruses, and Zika.
To achieve all these goals, CEPI will need significant additional investment, and the initial CEPI funders are calling for other governments and philanthropic organisations to join them in helping to protect the world against future epidemics. CEPI is looking to complete its fundraising by the end of 2017.
CEPI also hopes to shorten the time it takes to develop new vaccines to protect against viruses that emerge suddenly as public health threats, as Zika did recently, by capitalising on exciting developments in adaptable vaccine technology and investing in facilities that could respond quickly to previously unknown pathogens.