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Assam govt formulates new industrial policy for boosting growth
To give a fillip to industrial growth in the state, the Assam government has formulated a new ‘Industrial and Investment Policy of Assam, 2019’ for a period of five months.
The new policy, which was approved by the state Cabinet on July 22, will come into effect from September 1 for new units only, established during the next five year period.
Among the incentives of the policy are 2 per cent interest subsidy on working capital for 5 years subject to a ceiling of Rs 50 lakh per unit and power subsidy of Rs 2 per unit for a period of 5 years subject to a maximum of Rs 50 lakh per annum.
It will also entitle reimbursement of SGST for a maximum period of 15 years (ranging from 150 to 250 per cent of fixed capital Investment).
Among other key highlights are 50 per cent generating set subsidy subject to a ceiling of Rs 20 lakh, financial assistance to MSME at the rate of 30 per cent of the cost of public issue expenses subject to a ceiling of Rs 5 lakh for getting listed in stock exchange and financial assistance for environmental compliance at the rate of 50 per cent of the capital cost subject to a ceiling of Rs 25 lakh.
Moreover, 100 per cent stamp duty exemption subject to a ceiling of Rs 25 lakh on purchase of land, 75 per cent subsidy on technology transfer subject to a ceiling of Rs 10 lakh and incentive for private sector Infrastructure developer at the rate of 30 per cent of the cost of creation of Industrial Infrastructure (excluding value of land) subject to a ceiling of Rs 3 crore has been provided under the new policy.
The state government will also provide incentives of Rs 10,000 to the units against each local youth employed by the units and may provide special dispensation to the unit where the investment is above Rs 1000 crore or generating minimum regular employment of 2000 people, as per the policy.
The benefit of tax reimbursement under the policy shall be subject to the condition that the unit after having availed of the benefit shall continue its production or operation at least for the next five years not below 75 per cent of the average production for the preceding five years.
In case the unit violates this condition, it shall be liable to make, the full amount of tax availed of by it during the period of eligibility, as if no tax reimbursement was ever available to it.
Overall cap of all incentives putting together should not be more than 100 per cent of Fixed Capital Investment of the unit, which is excluding the amount of SGST reimbursement, under the new policy.