"We are promoting electronic cluster in a big way since last 14 months. We have received investment proposals of Rs 1.07 lakh crore till now on which we are going to give lot of incentives under MSIPS," Prasad said.
    
The Modified Special Incentive Package Scheme provides subsidy for investments in capital expenditure which is 20 percent for investments in special economic zones (SEZs) and 25 percent 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 percent deduction on expenditure on research.
    
Prasad said that electronics manufacturing space has huge potential to generate employment.
    
"Seven institutes of IT and electronics will be set up so that we can have good human resource to supplement need of human resource in electronic manufacturing," Prasad said.

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, he said.
    
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.

 

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