Assam Industrial Policy- 2019

Assam Industrial Policy- 2019

Policy validity:

The Assam Industrial and Investment Policy, 2019 shall come into force from the date of notification and will remain in force for a period of 5 years.

Definitions:

Manufacturing activity means “an activity which brings about a change in non-living physical object or article or thing (i) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or (ii) bringing into existence of a new and distinct object, article or thing with a different chemical composition or integral structure”.

New Industrial unit means a unit, which has commenced commercial production in the state of Assam during the validity period of Industrial & Investment Policy of Assam, 2019.

Micro, Small and Medium enterprises mean enterprises as per investment criteria defined under the Micro, small and medium Enterprises Development Act, 2006 or as amended

Large unit means where the investment in plant and machinery is more than Rs. 10 Cr. Or as amended.

Fixed Capital Investment means and includes investment in plant and machinery and land and building connected directly with manufacturing process and in case of hotels/resorts 3 Star and above category and river cruise, it shall mean and include investment in plant and machinery, land and building directly connected with hotel premises or investment made in river cruises of capital nature.

Fiscal Incentives:

Following Fiscal incentives will be available to eligible units under the Policy:

State Goods and Service Tax (SGST) reimbursement:

Reimbursement of 100% SGST paid through debit in electronic cash ledger account in the term of sub-section (1) of section 49 of Assam GST Act, 2017 as per the following scale:

In case of Mega unit to which customized/special incentives are given, the quantum of monetary ceiling that may be allowed shall not exceeds 200%  of fixed capital investment.

Other Incentives

Following are the incentives put in as the other incentives category in the Policy, namely Power subsidy, Generating set  subsidy, Stamp  duty reimbursement, Technology Transfer   and quality certification, Interest subsidy on working capital loan, Financial Assistance in MSME listed in stock Exchange, Assistance for  Environmental Compliance, Incentive to private sector Infrastructure developers and the aggregate/overall incentives from all these component shall not exceeds 100% of the fixed capital investment.

Power Subsidy:

Manufacturing and Specified Service sector units will be eligible for reimbursement of power subsidy @  2.00 per unit consumed for a period  of 5 (five) years  from  the date of commercial production subject  to a maximum  Rs. 50 (fifty) lakhs Per Annum and not exceeding 100% of total investment made in plant & machinery, whichever is less.

Subsidy on Generating set:

Subsidy on Generating set @ 50% of the cost subject to a limit of 20 lakhs on cost of generating set, taxes and transportation only. However, the capacity of the DG set should be equivalent to the power sanction to the competent authority.

Stamp Duty Reimbursement:

Stamp duty reimbursement shall be as follows:-

100% Stamp duty reimbursement shall be reimbursed, subject to a monetary ceiling of Rs. 25 lakhs (Twenty Five Lakhs)

Stamp duty reimbursement shall not be available to agricultural land and its shall not also be available for land used in manufacturing activities in urban areas.

Technology Transfer and Quality Certification, ZED Certification:

The fee payable for obtaining BIS/ISO/FSSAI/AGMARK/HALLMARK/SILK MARK/ZED Certification etc. And fee payable for getting Technical knowhow/Technology transfer from any recognized national/international research laboratories/ Technical Institute/ University, Institutions like CFTRI, CIPET,   etc. By eligible unit, will be provide subsidy up to the extent of 75%, subject to a ceiling of Rs.  10.00 lakhs per unit.

Interest Subsidy on Working Capital Loan:

2% on the outstanding working capital loan for five years subject to a ceiling of Rs.50 lakh (Fifty Lakh) and not exceeding 100% of investment in plant and machinery. Interest subsidy shall be available only on outstanding working capital loan availed from Bank/Financial Institution.

Financial assistance to MSMEs listed in Stock Exchange:

To encourage the MSMEs to be listed in BSE & NSE, Govt. Will provide subsidy @ 30% of the cost of Public Issue expenses, subject to maximum of Rs.  5 lakhs.

Assistance for Environmental Compliance:

Subsidy @ 50% on capital cost for setting up of effluent treatment plant subject to max of Rs. 25 lakhs per unit. This shall be not available for the Hotel Industries.

Incentives to Private Sector Infrastructure developer:

It is proposed to provide 30% subsidy, excluding value of land, subject to a ceiling of Rs. 3 Cr to encourage the private investors in creation of industrial infrastructure where the land area is not below 30 Acres.

The State Government may provide special dispensation to the unit where the investment in fixed capital investment is above Rs. 1000 Cr (One thousand crore) or generating a minimum of 2000 (two thousand) regular employment.

Eligibility Criteria and procedure for applying Eligibility Certificate:

1. Notwithstanding anything contained in this policy, units engaged in manufacture of items as mentioned in Annexure: 1 shall not be eligible for any incentive under this policy.


2. Hotels/Resorts 3 Star and above category and river cruise, generation of power through green technology shall be eligible for incentives under the policy.


3. Units will have to employ minimum of 80 % people of Assam in the Managerial Cadre and minimum 90% people of Assam in Non Managerial Cadre. The employment Certificate shall be obtained from the competent authority at the same time the unit should follow the existing Labour Laws as regards to the employment and wages in the unit.

Claim Procedure:

Procedure for claiming different subsidies under the policy is as indicates below:

Submission of Investment intension:

Any person who undertakes setting up a new unit shall furnish such information to the jurisdictional General Manager, District Industries & Commerce Centre (DICC) within 30 days in a prescribed format from the date of receipt of Acknowledgement of Industrial Entrepreneurs Memorandum (IEM), Udyog Adhar, etc, as the case may be.

Eligible units will have to apply online for issuance of eligibility Certificate within 1 year from the date of Commencement of Commercial Production for availing the incentives under the Policy.

Eligible units shall apply online/offline, as applicable, for incentives other than SGST reimbursement, within 6 (six) months from the date of issue of Eligibility Certificate.

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