Assam Industrial Policy

 

Incentives from the Assam Government

 

 

Enumerated in Chapter 5 of the 1997 Industrial Policy of Assam , the incentives from the State Government of Assam can be broadly classified into:

 

• Fiscal Incentives
• Infrastructural Incentives
• Special Incentives

 

 

FISCAL INCENTIVES            

 

 

1. Power Subsidy

 

Power subsidy shall be granted as follows :

 

Connected Load                              Amount of subsidy     Ceiling on subsidy               [Per Industrial unit per year]

Up to 1 MW                                       50%                             Rs.   5.00 lakh

Above 1 MW &up to 5 MW             30%                             Rs. 15.00 lakh

Above 5 MW                                     20%                             Rs. 30.00 lakh

 

The above subsidy shall be available for a period of 5 ( Five ) years from the date  of commercial production

 

2. Interest Subsidy on working capital 5 % interest subsidy shall be provided to the SSI units with an investment up to Rs.60 lakh on interest on working capital for the loan obtained from the banks and financial institutions  This  benefit shall be available for a period  of three years from the date of commercial production and the maximum benefit shall be  Rs.3.00 lakh per year per unit .

 

 

3. Sales Tax exemption

 

All new industries and existing industries going in for expansion /diversification/ modernisation will be granted   sales tax exemption for sales of finished product and purchase of raw materials as per following

scale : 

 

 

Category	SSI/Tiny/SSSBEs	Medium and Large
New Unit	7 Years subject to maximum of 150% of fixed capital investment	7 Years subject to maximum of 100% of fixed capital investment
Units undergoing expansion diversification modernisation	7 years subject to maximum of 100% of additional fixed capital investment	7 years subject to maximum of 90% of additional fixed capital investment

 

The tax benefit is up to 250% of fixed capital investment spread over a maximum period of  7 years  in a view of  low  fixed capital investment

 

 

INFRASTRUCTURAL INCENTIVES

 

1. State Capital Investment Subsidy (SCIS)

 

A special State Capital Investment Subsidy @ 30% of the capital investment on land, building and plant and machinery etc. subject to a ceiling of Rs.10 lakh will be provided to the industries under this policy.

 

2. Subsidy on Generating set

 

The subsidy on the Generating Set including non-conventional energy generating sets will be given  @ 50%

of the cost of the generator subject to a ceiling of Rs.10 lakh per industrial unit

 

3. Equity participation in the assisted sector

 

Assam Industrial Development Corporation Ltd.(AIDC) / Assam Small Industries Development Corporation Ltd.(ASIDC) would participate in the equity  contribution up to 20% of the issued capital of the company subject to a ceiling of Rs.20 lakh in any viable project where the project cost does not exceeds Rs.5 Crore. Preference would be given to the company floated by Entrepreneurs of Assam. AIDC would participate in the equity share in respect of medium and large scale and ASIDC in respect of SSI sector.

 

4.Contribution to feasibility study cost     

 

In the case of medium and large scale industries, AIDC will provide 90% contribution towards cost of Feasibility Report prepared by agencies approved by the Udyog Sahayak of AIDC/Directorate of Industries subject to a ceiling of Rs. 2,00,000.00 in each case. The contribution shall be treated as interest free loan for a period of five years from the date of commercial production or from the date of disbursal of the loan, which ever is later. If the project is not implemented within the prescribed period, feasibility report shall become the property of AIDC/Directorate of Industries and the entrepreneur shall be liable to pay back the entire amount to AIDC within a prescribed time limit.

 

For small scale units the cost of Feasibility report prepared by an agency approved by the Udyog Sahayak will be subsidised to the extent of 100% in case of projects whose total project cost is within Rs.10lakh and 90% in case of projects above Rs.10 lakh, the ceiling of subsidy will be Rs.50,000.00 in each case . The project report will become the property of the Government if the project is not implemented within the prescribed time.

 

5. Miscellaneous Subsidy

 

Miscellaneous subsidy as listed below will be provided to eligible units whenever applicable :

 

I. 20% of the cost payable to Assam State Electricity Board for drawl of HT/LT line up to the premise of the unit and installation of Transformer for power supply to the unit subject to a ceiling of Rs.1.00 lakh.

 

II. 50% of the fees (Excluding recurring royalty) paid for procurement of know-how from National Research & Development  Agency or other  Agency recognised by Udyog Sahayak subject to a ceiling of Rs.1.00 lakh.

 

III. 50% of the cost of pollution control and monitoring equipments subject to a ceiling of Rs.2.00 lakh.

 

IV. 50% of the cost of quality control equipment subject to a ceiling of Rs.1.00 lakh . 

 

The miscellaneous subsidy shall be released only after actual expenditure is made by the unit. The above incentives are applicable for all sectors of industries where the fixed capital  investment does not exceed Rs.5

crore .

 

 

6. Subsidy on infrastructure facilities :   

 

I. In appropriate cases, developed land will be allotted on hire purchase basis to the entrepreneurs. The cost of land including cost of development and cost of creation of infrastructural facilities like power, water and approach road will be recovered in annual installment over 15 years from the date of handing over of the land with a moratorium of five years. Such land will be permitted to be utilised by the unit for mortgage / hypothecation for obtaining loans from banks and financial institutions.

 

II. In case developed land as stated above is not available for allotment the entrepreneurs will be allotted

undeveloped land . In such case, actual land development cost will be provided as an interest free loan to the eligible units subject to the following ceilings :-

 

 

Project cost                                               Limit of Interest            Overriding interest

                                          free loan as % of          free loan limit

                                          project cost                    ( Rs. In lakh)

 

Up to Rs.2 crore                                               3.0                                `     5.00

Above Rs.2 crore & up to Rs.5 crore            2.0                                      7.50

Above Rs. 5 crore & up to Rs.10 crore         2.0                                    15.00

Above Rs.10 crore & up to Rs.50 crore        1.5                                    50.00

Above Rs.50 crore                                          1.0                                   100.00

 

 

7. Manpower Subsidy

 

Subsidy on man power development will be provided in respect of local persons trained and employed in the industrial units at the following rates to compensate for the amount spent on training :

 

For management personnel      Rs. 10,000.00             Per person

For supervisory category           Rs.  7,500.00                  do

For skilled category                    Rs.  5,000.00                  do

Foe unskilled category               Rs.  2,000.00                  do

  

 

This is subject to the following ceiling:

 

Unit with investment                Total ceiling

Up to Rs.2 crore                      Rs.1,00,000.00

Rs.2 crore to Rs.5 crore         Rs.2,00,000.00

Rs.5 crore to Rs.10 crore       Rs.5,00,000.00

Above Rs.10 crore                  Rs.7,00,000.00

 

 

SPECIAL INCENTIVES

 

 

1.Special incentives to the Pioneer Unit

 

A new unit with fixed capital investment exceeding Rs.3 crore set up in a district where there are no medium or large Scale industries will be given pioneer status. Such unit will be eligible for additional State Capital Investment Subsidy of 5% of fixed capital investment subject to a ceiling of Rs.10 lakh such units will also be given Power subsidy for an additional period of 2 years at the same rate in addition power subsidy at 5.1

 

 

2. Special incentives for Export Oriented Units (EOUs)

 

a.Special incentives for 100% Export Oriented Unit will be granted as below:

 

i. Additional State capital invest subsidy of 10% subject to ceiling of Rs.10 lakh .

 

ii. Additional 20% subsidy on purchase of testing equipment on obtaining ISO 9000/BIS 14000 series registration subject to a ceiling of Rs.2 lakh.

 

b. Special incentives for units other than 100% EOUs with an export effort of a minimum of 25% of the value of the turnover will be as below:

 

Subsidy on purchase of testing equipment for obtaining ISO 9000/BIS14000 series registration at the rate of 30% of the cost of the equipment subject to a ceiling of Rs.5 lakh. This being proposed to support quality improvement efforts.

 

3. Special incentives for Women Entrepreneurs

 

Special incentives as detailed below would be granted to Women Entrepreneurs :

 

I. Additional State Capital Investment subsidy of 5% subject to a ceiling of Rs.5.00 lakh where women constitute more than 50 % of the workforce in the industry.

 

ii. Additional Interest subsidy on working capital 2% subject to a ceiling of Rs.1.00 lakh for  a  period of three years from the date of going in to commercial production .

 

iii. Built up factory sheds will be allotted to the women entrepreneur on priority basis and the rent will be subsidies @ 75% of the economic rent for a period of five years from the date of going in to commercial

production.  

 

 

4. Special incentives for Agro & Food processing industries

 

Special incentives as detailed below would be granted to the Agro & food processing industries :

 

i. Additional State Capital Investment Subsidy of 5% subject to a ceiling of Rs.5.00 lakh for agro & food processing industries.

 

ii. 50% of the cost payable for getting FPO licence /AGMARK /Trade Mark for the products for food processing industries subject to a maximum ceiling of Rs.1.00 lakh.

 

5. Special Incentives for physically handicapped person Special incentives as detailed below would be given to the industrial unit sett up by physically handicapped

persons as given below :

 

a. Additional 5 % State Capital Investment Subsidy subject to a ceiling of Rs.5.00 lakh.

 

b. Additional 2% interest subsidy on working capital for a period of three years from the date of commercial production subject to a ceiling of Rs.1.00 lakh per annum.

 

6. Special Incentives for Handicraft Industries 

 

a. Additional 10 % Special Capital Investment subsidy subject to a ceiling of Rs.2.00 lakh

 

b. Additional 2% Interest subsidy on working capital for a period of three years from the date of going in to commercial production subject to a ceiling of Rs.1.00 lakh per annum.