The Ministry of Information Technology is planning to offer sops for an electronics manufacturing hub in eight identified cities.

The companies which will set up such facilities in the cities will be eligible for incentives, including subsidy. These identified eight cities will have benefits under the Modified Special Incentive Package Scheme (M-SIPS). These are: Ghaziabad; Vadodara; Ahmedabad; Gandhinagar; Nagpur; Nasik; Aurangabad; and Thane.

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

In addition to this, the ministry is planning to set up seven greenfield electronic manufacturing clusters. It is also planning to promote chip making facilities in the country.