INDUSTRIAL POLICY OF ASSAM 2003

FISCAL INCENTIVES UNDER INDUSTRIAL POLICY

STATE CAPITAL INVESTMENT SUBSIDY (SCIS):

The State Capital Investment Subsidy @ 30% on Investment in Plant and Machinery subject to a ceiling of Rs. 20.0 lakhs will be provided to eligible industrial units. For Export Oriented Units, the ceiling is Rs. 25.0 Lakhs.

INTEREST SUBSIDY ON WORKING CAPITAL LOAN (ISWC):

Interest Subsidy shall be provided @ 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 whichever is less during the entire period of claim.

POWER SUBSIDY (PS):

Power subsidy will be provided to the eligible industrial units on the power tariff paid against the actual units consumed for a period of 5 (five) years subject to a ceiling shown below:

SUBSIDY ON CAPTIVE POWER GENERATION (SPG)

Subsidy @ 50% of the cost of Generating Set to the eligible industrial units will be provided subject to a ceiling of Rs. 10.0 Lakhs per unit. The installed generating set capacity should be at par or above of the ASEB sanctioned load.

SUBSIDY ON FEASIBILITY STUDY COST (SFC):

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.

SUBSIDY ON QUALITY CERTIFICATION / TECHNICAL KNOW-HOW:

The fees payable for obtaining BIS / ISO/ 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 of Rs. 1.0 Lakhs per unit.

SUBSIDY ON MARKETING ASSISTANCES (SMA):

Eligible industrial units specially approved for this purpose will be provided with the following support under marketing assistance scheme:

1. 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.



2. 50% of the cost of advertisement through Cinema Hall / Any Electronic media will be subsidized upto a ceiling of Rs. 20,000/- per unit per annum subject to prior approval of the Government.



3. 50% of the transportation of exhibits for participation in Government sponsored / recognized Trade Fair / Exhibition etc. will be subsidised upto a ceiling of Rs. 20,000/- per unit per annum subject to prior approval of the Government.

SUBSIDY ON DRAWAL OF POWER LINE (SDP):

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

SPECIAL INCENTIVES FOR FOOD PROCESSING / ELECTRONIC / AGROBASED / BIOTECH INDUSTRIES:

Special incentives will be provided to the above category of eligible industrial units as additional SCIS @ 10% subject to a ceiling of Rs. 5.0 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 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 through 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:

1. SCIS………………………………..30%……………………………..Rs. 25 Lakhs
2. Gen. Set Subsidy……..50%……………………………………..Rs. 20 Lakhs
3. Power Subsidy : Upto 1 MW 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
4. Development Subsidy (for drawal of H.T/L.T.line upto premises of the unit / Installation of pollution control equipment)……………………10%……………………….Rs. 20 Lakhs.

SALES TAX EXEMPTION:
(As modified Vide No. CI.310/2001/pt.III/90 dtd. 29.10.03)

All new units and existing units going in for expansion / diversification / modernisation will be granted sales tax exemption for sale of finished products and purchase of raw materials as per following scale:

In the case of Electronic Industries, the tax benefit is upto 250% of fixed capital investment spread over a maximum period of 7 years in view of low fixed capital investment.