Click Print to obtain your certificate
Industrial Incentives
New Industrial Investment Promotion Policy 2005-10 (IIPP)
SSI/Tiny units
Small Scale Industry (SSI) means a Unit having the investment on plant and
machinery (Productive only) up to limit as defined by the Government of India
from time to time. Tiny Industry means an industry in which Investment plant
and machinery (Productive only) up to limit as defined by the Government of
India from time to time.
1. 100% reimbursement of Stamp duty and transfer duty paid by the industry on
purchase of land meant for industrial use.
2. 100% reimbursement of Stamp duty for Lease of Land/Shed/ Buildings.
3. 100% reimbursement of Stamp duty and transfer duty paid by
the industry on financial deeds and mortgages etc.
4. 3.1.4. 25% rebate on land cost in IEs/IDA’s limited to
Rs.5.00 lakhs.
5. 3.1.5. Power cost will be reimbursed @ Rs.0.75 per unit
during the first year of the policy and thereafter for the remaining four years
the rate of reimbursement would be so regulated on yearly basis, keeping in
view of the changes in the tariff structures to ensure that power cost to the
industry is pegged down to the first year’s level.
6. 15% investment subsidy on fixed capital investment will be given subject to a
maximum of Rs.15.00 lakhs
7. An additional investment subsidy of 5% on fixed capital
investment limited to Rs.5.00 Lakhs for SC/ST entrepreneurs.
8. 25% of the tax paid during one financial year will be
ploughed back as a grant by the Government towards the payment of tax during
next year. Benefit will be available for 5 years from the date of commencement
of production i.e., upto 6th year.
9. 3% interest subsidy on Prime Lending Rate (PLR) will be given
on the term loan taken by new Tiny/SSI industrial units subject to a maximum of
Rs.5.00 lakh per year for a period of 5 years.
10. 5% of project cost will be provided as seed capital
assistance to SSI/Tiny Units started by SC/ST Entrepreneurs as a grant for
industries, which were sanctioned seed capital assistance by Prime Lending
Institutions under National Equity Fund Scheme limited to Rs.5.00 Lakhs.
11. 8% subsidy on capital equipment for technology upgradation.
12. 50% subsidy on the expenses incurred for quality certification limited to
Rs. 1.00 Lakh.
13. 25% subsidy on specific cleaner production measures limited to Rs.5.00
Lakhs.
14. 50% subsidy on the expenses incurred for patent registration limited to Rs.
5.00 Lakhs.
Women Entrepreneurs
Women entrepreneurs mean those units established as sole Proprietress or
invariably having 51% share in Partnership/Private Limited Companies.
1. 100% reimbursement of Stamp duty and transfer duty paid by the industry on
purchase of land meant for industrial use.
2. 100% reimbursement of Stamp duty for Lease of Land/Shed/Buildings.
3. 100% reimbursement of Stamp duty and transfer duty paid by the industry on
financial deeds and mortgages etc.
4. 25% rebate in land cost in IEs/IDA’s limited to Rs.5.00 Lakhs.
5. Power cost will be reimbursed @ Rs.0.75 per unit during
the first year of the policy and thereafter for the remaining four years the
rate of reimbursement would be so regulated on yearly basis keeping in view of
the changes in the tariff structures to ensure that power cost to the industry
is pegged down to the first year’s level.
6. 15% investment subsidy on fixed capital investment will be
given to SSI/Tiny Units subject to a maximum of Rs.15.00 lakhs
7. 5% Additional Investment subsidy on fixed capital investment
limited to Rs.5.00 Lakhs.
8. Another 5% investment subsidy on fixed capital investment
limited to Rs.5.00 Lakhs for women belongs to SC/ST Community.
9. Upto 25% of the tax paid during one financial year will
be ploughed back to Industries as a grant by the Government towards the payment
of tax during next year. However, such grant shall not remit in net cash
outflow to Government. Benefit will be available for 5 years from the date of
commencement of production i.e. upto 6th year.
10. 5% of project cost will be provided as seed capital assistance to SSI/Tiny
units as a grant for industries, which were sanctioned seed capital assistance
by Prime Lending Institutions under National Equity Fund Scheme limited to
Rs.5.00 Lakhs.
11. 5% interest subsidy on Prime Lending Rate (PLR) will be given on the term
loan taken by new Tiny/SSI industrial units subject to a maximum of Rs.5.00
lakh per year for a period of 5 years.
12. 8% subsidy on capital equipment for technology upgradation.
13. 50% subsidy on the expenses incurred for quality certification limited to
Rs. 1.00 Lakh.
14. 25% subsidy on cleaner production measures limited to Rs.5.00 Lakhs.
15. 50% subsidy on the expenses incurred for patent registration limited to Rs.
5 Lakhs.
Units other than SSI/Tiny units (Large & Medium Scale Industries)
Other than SSI/Tiny units (Large & Medium Scale Industries) means an
industry in which the investment on plant and machinery (Productive only) less
than Rs 100 crores except SSI Units.
1. 100% reimbursement of Stamp duty and transfer duty paid by the industry on
purchase of land meant for industrial use.
2. 100% reimbursement of Stamp duty for Lease of Land/Shed/Buildings.
3. 100% reimbursement of Stamp duty and Transfer duty paid by the industry on
financial deeds and mortgages etc.
4. 25% rebate in land cost in IEs/IDA’s limited to Rs.5.00 Lakhs.
5. Power cost will be reimbursed @ Rs.0.75 per unit during the
first year of the policy and thereafter for the remaining four years the rate
of reimbursement would be so regulated on yearly basis keeping in view of the
changes in the tariff structures to ensure that power cost to the industry is
pegged down to the first year’s level.
6. 25% of the tax paid during one financial year will be
ploughed back to the units as a grant by the Government towards the payment of
tax during next year. Benefit will be available for 5 years from the date of
commencement of production i.e. upto 6th year.
7. Infrastructure like roads, power and water will be provided
at door step of the industry for stand alone units by contributing 50% of the
cost of infrastructure from IIDF with a ceiling of Rs.1.00 Crore, subject to
(a) the location should be beyond 10 kms from the existing Industrial
Estates/IDA’s having vacant land/shed for allotment and (b) cost of the
infrastructure limited to 15% of the eligible fixed capital investment made in
the industry.
8. 50% subsidy on the expenses incurred for quality certification limited to Rs.
1.00 Lakh.
9. 25% subsidy on cleaner production measures limited to Rs.5 Lakhs.
10. 50% subsidy on the expenses incurred for patent registration
limited to Rs. 5 Lakhs.
Mega Projects
Mega Project means the Industrial unit, which sets up with a capital investment
of Rs.100 Crores or above.
1. Mega projects i.e. projects with an investment of Rs.100 Crores and above
are eligible for all the incentives available for Large and Medium Scale
Industries.
2. Further, the Government will also extend tailor-made benefits to suit to
particular investment requirements on case to case basis.
Existing Tiny/SSI/Large & Medium Scale Industries other than Mega
projects
1. 50% subsidy on the expenses incurred for quality certification limited to
Rs. 1.00 Lakh.
2. 50% subsidy on the expenses incurred for patent registration limited to Rs.
5.00 Lakhs.
Existing Large Industries and Mega projects
You are Visitor No.:97863
