Bosch gets approval to make ECUs under incentive scheme

JULY 15: Bosch Automotive Electronics India, a 100 percent subsidiary of the Bosch Group in India, has received approval on the investment proposal for the manufacturing of electronic control units or ECUs of car engines under the Modified Special Incentive Scheme (M-SIPS). Kapil Sibal, union minister for communication & IT and Law, handed over the approval order to Dr. Markus Hildenbrand, MD, Bosch Automotive Electronics India.

With this planned investment of around Rs 550 crore over the next 3-5 years, this approval will provide several benefits for Bosch. Dr. Hildenbrand said, “ With our world class manufacturing and software capabilities Bosch will continue to use its global expertise and experience to extend the local operations in India.”

Dr. Steffen Berns, president, Bosch Group-India, said, “Electronics manufacturing is at a nascent stage in India and this support will enable the industry to meet the dynamic and modern requirements, especially in the automotive domain”. In January 2013, at a round table chaired by Sibal to understand the requirements of the electronics industry, Bosch Automotive Electronics India was the first to submit its application under the scheme.

Under M-SIPS, the government will provide subsidies for investments in capital expenditure with a limit of 20 percent for investments made in SEZs and 25 percent in non-SEZs. In addition, investors will get reimbursement of CVD and excise for capital equipment for units set up outside of a SEZ. The incentives will be given to investments made in a project within 10 years from the date of its approval.

Bosch Automotive Electronics India is positioning itself as an export hub especially in the Asia Pacific region. Currently, products such as engine ECUs and body parts made in India are exported to the ASEAN region, the company said in a press release.