State Capital Investment Subsidy
State capital investment subsidy on cost of land, buildings, plant and machinery will be provided to tiny and SSI Units at the rate of fifteen percent of the fixed capital, subject to a ceiling of Rs. 3.5 lakhs.
- In the event of Central Government granting similar such subsidy and State Government subsidy as above being greater than the same, subsidy of the State Govt. would be limited to the difference between the two subsidies.
- Any unit with an export commitment at not less than twenty five percent of the total turnover will be eligible for an additional five percent investment subsidy subject to
an over all ceiling of Rs. 5 lakhs.
Development Subsidy
2.1 Development subsidy will
be provided at a rate of ten percent of the fixed capital investment as
defined in para 1.1 above subject to a ceiling of Rs. 1.5 lakhs, for the
actual expenditure on items listed below:
Charges payable to statutory bodies for any permission or registration
- Cost of pollution control equipments etc.
- Fifty percent of the fees (excluding recurring royalty) paid for the procurement of know-how
from a well established and approved Research and Development Organisation
2.2 This development subsidy
will be reimbursed only after actual expenditure is made by the units.
Subsidy on the cost incurred for the Feasibility study and project reports
Subsidy will be provide at hundred percent for meeting the cost incurred on the preparation of feasibility/project report subject to a maximum of Rs.25,000 provided that the report is prepared by a Government approved agency.
Interest Subsidy
3.1 A subsidy on interest
payments to banks/financial institutions will be provided at the rate of
four per cent on term loans (excluding working capital loans) availed by
an entrepreneur for setting up of approved industrial units subject to
a maximum of Rs.10,000 per month for a period of 5 (Five years from the
date of disbursement of the loan.
3.2 This subsidy will be
in the form of re-imbursement of actual repayments made.
Local Employment Promotion Grant
4.1 Government will reimburse
annually up to thirty per cent of the realistic wage bill for local tribal
employees over and above the stipulated number of local tribal employees
in the industrial Policy as specified in the eligibility criteria (para
D.2.1)(a).
D.2.1 This grant would be
for a period of three years from the date of entertainment of such staff
and would only be given to those units where, either investment in plant
and machinery exceeds Rs. 5 lakhs or the number of employees engaged in
manufacturing sector exceeds 20(twenty) numbers. The grant will also be
subject to a ceiling of Rs.50,000 annually.
4.2 Fifty per cent of the cost
incurred on the training of local tribal employees will be reimbursed subject
to the following:-
Such trained person being absorbed in the unit failing which the unit will refund the subsidy amount paid for the same.
- Training is conducted in an Institute approved by the State Government.
Subsidy on power
5.1 Subsidy on power tariff
will be provided at the rates of thirty percent and twenty five percent
for loads upto 2 MW and loads above 2 MW respectively for a period of 5
(Five years from the date of commercial production. The subsidy will be
limited to a maximum of Rs. two lakhs annually. This subsidy will be granted
on the basis of actual consumption of power for the manufacturing process
substantiated with requisite details and diagrams.
5.2 Subsidy up to fifty percent
of the cost of generating sets including non conventional energy generating
sets subject to a ceiling of Rs.50,000/- per unit will be granted to SSI
units n the non electrified rural areas provided the unit produces a certificate
from MeSEB to this effect.
5.3 In case a project is
located in an area which requires the drawal of the power line of 1 KV
and above then the Government will reimburse the cost incurred on the drawal
of such a power line including the cost of transformers, if any, subject
to a maximum limit of Rs. one lakh and provided that the location has been
approved by the Government.
5.4 Fifty percent of the
cost incurred on service connection will be reimbursed subject to a maximum
of Rs.20,000/- for each industrial unit.
Subsidy on cost incurred on quality control measures
6.1 Cost of Laboratory Equipment
for the purpose of quality control and ISI certification, subject to a
maximum of Rs.10,000/- per unit will be reimbursed in cases where it does
not form part of the project cost.
6.2 Export oriented units
committing to export at least fifty percent of the value of the turn over
will be eligible for an additional reimbursement of Rs. 1,00,000/- against
such quality control measures.
Sales Tax Exemption
Meghalaya Sales Tax will
be exempted on sale of finished products for a period of 9 years from the
date of commercial production.
Lower rate of Meghalaya Finance Tax
To encourage the local manufacturers
in the State, the rate of Meghalaya finance tax will be lowered down from
12% to 4%, bringing it at par with CST rate so that such manufacturers
can compete with products coming from outside the State .Such reduction
will be limited to only such selected items which are being manufactured
or likely to be manufactured locally within the State as may be notified
by the Government from time to time.
Additional Sales Tax incentive
9.1 An approved project may, in lieu of State capital investment subsidy, be granted Sale Taxes remission for an additional period of 4 years but limited to the amount of capital investment subsidy otherwise eligible. This additional assistance will be in the form of reimbursement.
9.2 Approved 100% export-oriented
units (EOUS) will be entitled to receive an additional sales tax exemption
or 1(one) more year over and above the eligible period as indicated in
para 8 and 10.1 above.
Price Preference
Price preference in accordance
with the existing Meghalaya Preferential Stores Purchase Rules, 1978 will
be allowed for all eligible units.
Exemption from Stamp Duty
An exemption of Seventy-five
percent of the applicable Stamp Duty for the small/tiny scale units will
be provided to assist an entrepreneur in executing deed(s) for financial
assistance from Banks and Financial Institutions.
F. LARGE AND MEDIUM SCALE
INDUSTRIES:
State Capital Investment Subsidy
1.1 State Capital Investment
Subsidy will be provided at the rate of thirty percent of the fixed capital
investment subject to a ceiling of Rs. 20 lakhs.
Subsidy for the Cost incurred on preparation of Feasibility Study and preparation of Project Report:
Subsidy will be provided
at ninety percent of the cost of preparation of feasibility/project reports
subject to a ceiling of Rs. 2 lakhs provided that the report is prepared
by a Government approved agency.
Interest Subsidy
3.1 A subsidy on interest
payments to Bank/Financial Institutions will be provided at the rate of
four percent on term loans (excluding working capital loans) availed by
an entrepreneurs for setting up of approved industrial units. This is subject
to a maximum of Rs.20,000/- per month for 3 years from the date of disbursement
of the loan and to be applicable only for new units.
3.2 This subsidy will be
in the form of re-imbursement of the actual repayments made.
Local Employment Promotion Grant
4.1 Government will reimburse
annually up to thirty percent of the realistic wage bill for local tribal
employees over and above the stipulated number of local tribal employees
in the Industrial Policy as specified in the eligibility criteria. This
would be for three years from the date of entertainment. The maximum limit
of such subsidy is Rs. one Lakh annually.
4.2 Twenty percent of the
cost incurred on training of local tribal employees will be reimbursed
subject to the following:
Such trained person being absorbed in the unit, failing which the unit will refund the subsidy amount paid for the same.
- Training is conducted in an Institute approved by the State Government.
Subsidy on power:
5.1 Subsidy on power tariffs
will be provided at the rates of thirty percent and twenty five for loads
upto 2 MW and loads above 2 MW respectively, for a period of five years
from the date of commercial production and the maximum limit of such subsidy
is Rs. 7 lakhs annually. Power subsidy will only be allowed on actual consumption
of power for the manufacturing process substantiated with all requisite
details and diagrams etc.
Provided that in case of
a Tourism Unit, the power subsidy will be allowed on actual consumption
of power by such a unit.
5.2 Drawal of Power Line
:
In case a project is located
in an area which requires the drawal of a power line of 33 KV and above;
then State Government will reimburse the cost incurred on the drawal of
such power, including the cost of transformer, subject to a ceiling of
Rs. 5 lakhs and provided that the location has been approved by State Government.
Subsidy on cost incurred on quality control measure
Cost of Laboratory equipment
for the purpose of quality control and ISI certification, subject to a
maximum of Rs. 40,000 per unit will be reimbursed in cases where it does
not form part of the project cost.
Subsidy on cost incurred on Pollution Control Measures
Fifty percent of the cost
of approval pollution control measure will be reimbursed upto a maximum
of Rs. 75,000/- per unit.
Sales Tax Exemption
Sales Tax will be exempted
on sales of products for a period of seven years from the date of commercial
production.
Provided that in case of
a Tourism Unit, such Sales Tax Exemption will relate to the applicable
tax payable on services rendered by the unit.
Refund of Central Sales Tax(CST)
Units will be reimbursed
the amount of CST actually paid on purchases of such machinery and equipments
as is installed upto the date of commissioning of the unit.
Additional Sales Tax Incentives
Approved project may, in
lieu of State Capital investment subsidy, be entitled for a remission of
State Sales Tax for an additional period of years but limited to the amount
of capital investment subsidy, otherwise eligible. This additional incentives
will be in the form of reimbursement.
Exemption from Stamp Duty
Approved projects with fixed
capital investment not exceeding Rs. 5 crores will be exempted from Stamp
Duty upto 75% of the applicable amount to assist execution of deeds of
conveyance/mortgage pertaining to loans from financial institutions and
banks.
Special Incentives for Export Oriented Units
100% Export Oriented Units (EOUs)
An additional 5% capital investment subsidy subject to a maximum of Rs. 5 lakhs.
- Sales Tax exemption for an additional period of one year.
Other Units with an export commitment of 25% and above of the total turnover.
An Additional 5% capital investment subsidy subject to a maximum of Rs. 5 lakhs.
Provided that in case of a Tourism Unit, the export commitment shall be replaced by "commitment to earn Foreign Exchange"
Pioneer Units Scheme
13.1 A new industrial unit
with fixed capital investment exceeding Rs. 3 crores set up in a district
where there are no medium/large scale industries will be given pioneer
status. A pioneer unit will be entitled to an additional capital investment
subsidy of five percent subject to a ceiling of Rs. 15 lakhs.
13.2 Only the first three
units for any district will be eligible for the pioneer unit status.
