SSI - Key Incentives of Assam, Meghalaya, Arunachal Pradesh

MEGHALAYA || ARUNACHAL

ASSAM

State
/ UT

Subsidy on state Capital Investment (SCIS) /Interest subsidy on Working capital (ISWC)

Power Subsidy (PS) / Subsidy on Captive power Generation (SPG)

Subsidy on Feasibility study cost (SFC) / quality certification / Technical know how.

Subsidy on marketing Assistances (SMA) / Subsidy on Drawal of Power Line (SDP).

Special Incentives

Assam

2003

(i)	State capital Investment Subsidy @ 30% in plant & machinery subject to a ceiling of Rs. 20.0 Lakhs.For Export oriented units the ceiling is Rs. 25.0 Lakhs.
(ii)	Interest subsidy @30% of the amount of interest charged by/paid to the banks on working capital loan/cash credit to the eligible industrial units for a period of 5 (five) years from the date of commercial production subject to a ceiling of Rs. 5.0 Lakhs per unit or 20% of the turn over which ever is less during the entire period of claim.

	Subsidy on Sales Tax exemption :N.B. Decision on Sales Tax exemption is deferred and will be notified later on.

Power subsidy will be provided to the eligible industrial units on the tariff paid against the actual units consumed for a period of 5 (five) years subject to a ceiling i.e.
(i)	Connected load upto 1.0 MW: rate of subsidy- 50% & ceiling of subsidy per annum Rs.10.0 Lakhs.
(ii)	Connected load above 1.0 MW: rate of subsidy- 50%, & ceiling of subsidy per annum Rs.20.0 Lakhs

	Subsidy on captive power generation @ 30% of the cost of the generating set, subject toa ceiling of Rs. 10.0 lakhs per unit.

The cost of preparation of the feasibility report / project report prepared by agencies approved by the Udyog Sahayak of AIDC / Director of Industries & Commerce will be subsidized to the extent of 100% subject to a ceiling of Rs. 1.0 Lakhs per scheme of the unit. The cost of preparation of feasibility report / project report should not exceed 1% of the Project Cost. The claim will be entertained only after the unit goes into commercial production.

The fees payable for obtaining BIS / FPO / AGMARK and fees payable for getting the technical know-how from approved and recognized organization like Research Laboratories / CFTRI etc. by the eligible industrial units will be subsidized to the extent of 75% subject to a ceiling o Rs. 1.0 Lakhs per unit.

The following support under marketing assistance scheme.
a	50% of the rent / fee payable by the unit in participating in trade fair/ exhibitions sponsored or recognized by the Government against rent/ fees rates approved by the Government will be subsidized subject to a ceiling of Rs. 50,000/- per unit per annum within India and Rs. 1.0 Lakhs per unit per annum in case of participating abroad and with prior approval of Government.
b	50% of the cost of advertisement through Cinema Hall / any Electronic media will be subsidized up to a ceiling of Rs. 20,000/- per unit per annum subject to prior approval of the Government.
c	50% of the transportation cost on exhibits for participation in Government sponsored / recognized Trade fair / Exhibition etc. will be subsidized up to a ceiling of Rs. 20,000/- per unit per annum subject to prior approval of the Government.

	20% of the cost payable to ASEB for Drawal of power line from HT/LT power line up to the factory premise including the cost of transformer will be subsidized subject to a ceiling of Rs. 1.0 Lakhs.

Special Incentives For Food Processing/ Electronic/Agro based/ Biotech Industries:Special incentives will be provided to the above category of eligible industrial units as additional SCIS @ 10% subject to a ceiling of Ra5.0 Lakhs.

Special Incentives To Women / Physically Handicapped Entrepreneurs:Special incentives will be provided as additional SCIS to industrial units set up by women or physically handicapped entrepreneurs @ 10% subject to a ceiling of Rs.5.0 Lakhs.

Special Incentives To Sick PSUs:The management of Sick Public Sector Undertakings if taken over on joint holding/ lease by any party from State Financial. Corporation./ any Central or State Govt. agencies will be treated as a new unit for the purpose of Incentives under this sector. However the value of plant & machinery in the sale deed will be considered for the purpose of computation of the incentives.

Special Incentives For Major/ Heavy Industries And Industries Set Up Through Foreign Direct Investment:Priority clearance of various permissions, allotment of lands, power sanction etc. will be made trough high power single window clearance committee at Government level. The major/ heavy industries and industries set up through Foreign direct investment who have own power generation facilities will be provided special incentives as follows:Further the ceiling limit of some of the incentives for such type of industries will be increased to:

i	SCIS…………30%…Rs. 25 Lakhs.
ii	.Gen.Set.Subsidy 50% Rs.20 Lakhs.
iii	PowerSubsidyUpto1MW…50%… Rs.10 Lakhs for 5 years.Between 1 MW to 5 MW…. 30%…Rs. 20 Lakhs. For 5 years.Above 5 MW… 20% Rs.30 Lakhs For 5 years.
iv	Development Subsidy (for Drawal of H.T/ L.T line up to premises of the unit/Installation of pollution controlEquipment)… 10%….Rs. 20 Lakhs.

For more information please visit www.assamGovt.nic.in

MEGHALAYA

State / UT	Subsidy on Fixed Capital Investment (in percentage terms, maximum limit in Rs.Million)	Percent of Sales Tax Relief on fixed Investment (from data of commencement of production)	Power Subsidy (from data of commencement of production)	Infrastructure / Technical support	Other
Meghalaya (1997)	15% Rs.0.35 million ; an additional 5%, Rs. 0.5 million for units exporting 25% of production	Finished products exempt from sales tax for 9 years, in lieu of State Capital Investment Subsidy, Sales Tax remission granted for capital investment subsidy.	@0% and 25% for connected loads up to 2 MW and over 2 MW for a period of 5 years limited to Rs. 0.2 million annually, 50% of cost of service connection.	Development Subsidy @10% subject to a ceiling of Re.0.15 million. Feasibility / Project Report : subsidy @100%, up to Re.0.025 million annually, 50% of cost of laboratory equipment reimbursed.	The company subject to a ceiling of Rs. 2 million Local Employment Grant : an annual reimbursement of up to 30% of the realistic wage bills of local tribal employees, 75% of stamp duty exempted for SSI/tiny units, subsidy on interest payments.

ARUNACHAL PRADESH

State / UT	Subsidy on Fixed Capital Investment (in percentage terms, maximum limit in Rs.Million)	Percent of Sales Tax Relief on fixed Investment (from data of commencement of production)	Power Subsidy (from data of commencement of production)	Infrastructure / Technical support	Other
Arunachal Pradesh (1994)	@15% (till date of production )	----	Max 3 years, of subsidy on the power Tariff to be notified from time to time	50% of the cost Feasibility study and preparation of project report up to a maximum limit of Rs.2.5 Million. Auto-mat of land: 40 year lease for new units : existing units require ownership proof for lease rent exemption. Allotment of sheds in Industrial

HIGHLIGHT OF NEW INDUSTRIAL POLICY OF GOVERNMENT OF INDIA
FOR NORTH-EASTERN REGION

The Govt. of India in December'1997 announced a separate industrial policy for Northeast India. This policy with its synergetic package of incentives was specially designed to stimulate development of industries so that the region overcomes its continuing backwardness.

The major features of the industrial policy are given below --

DEVELOPMENT OF INDUSTRIAL INFRASTRUCTURE

GROWTH CENTRES: - The Government of India has approved that entire expenditure on the growth centers would be provided as central assistance subject to a ceiling of Rs.15 crores.
INTEGRATED INFRASTRUCTURE DEVELOPMENT CENTRES:- The funding pattern has been changed from 2:3 between Government of India and SIDBI to 4:1 and the Government of India funds would be a grant.

TRANSPORT SUBSIDY SCHEME

The scheme has been extended further in so far the N.E. states are concerned, for a period of another seven years i.e. up to 31st March, 2007.

Fiscal incentives to the new industrial units and substantial expansion of the existing units

(a)	Total tax free zone Government of India has approved for converting the Growth Centres/IID's Industrial estates, other identified locations in to Total Tax Free Zones for the next ten years.
(b)	Capital Investment Subsidy The Government of India have reintroduces the capital investment subsidy @ 15% of their investment in plant & machinery subject to a ceiling of Rs. 10 Lakhs.
(c)	Interest Subsidy on Working Capital Interest subsidy of 3% on working capital loan for a period of ten years after the commercial production.
(d)	Excise Benefits All excisable goods products in the factories located in the growth centers/IID's etc. in the state have been exempted from payment of excise duty. Goods products in specified industries located in areas outside the growth centers/IID's etc. have also been exempted from payment of excise duty. Excise exemption shall apply only to (i) New Industrial units which have commenced their commercial production on or after 24/12/97 but which have undertaken substantial expansion by way of increase in installed capacity by not less than 25% on or after 24/12/97.

Further, the above exemption shall apply to any of the aforesaid units for a period not exceeding 10 years from the date of publication of the above notification or from the date of commencement of commercial production whichever is later.

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