State Investment Subsidy for
Pollution Control Devices
The prevailing rates
for State Investment Subsidy, which came into effect
on 11-7-2000, will continue. Units in the priority (thrust)
sectors like rubber based industries, information technology,
agro based business including food processing, readymade
garments, ayurvedic medicines, mining, marine products,
light engineering, bio-technology and 100% export oriented
units will be eligible for a State Investment Subsidy
of 15% of the fixed capital investment (FCI), subject
to a maximum of Rs.15 lakhs, whereas non-priority sectors
will be eligible for 10%. Units being set up in the
backward districts of Idukki and Wayanad and the industrial
areas like Growth Centres and Industrial Parks will
enjoy the enhanced rate of subsidy viz. 25% subject
to a maximum of Rs. 25 lakhs for priority sector units
and 10% up to Rs.10 lakhs for non-priority sector units.
Investment in pollution control devices
shall be eligible for an additional 15% subsidy, subject
to a separate ceiling of Rs.5 lakhs.
Subsidy for Expansion/
Diversification/ Modernization of Industrial Units
The prevailing rates for State Investment
Subsidy, which came into effect on 11-7-2000, will continue.
Units in the priority (thrust) sectors like rubber based
industries, information technology, agro based business
including food processing, readymade garments, ayurvedic
medicines, mining, marine products, light engineering,
bio-technology and 100% export oriented units will be
eligible for a State Investment Subsidy of 15% of the
fixed capital investment (FCI), subject to a maximum
of Rs.15 lakhs, whereas non-priority sectors will be
eligible for 10%. Units being set up in the backward
districts of Idukki and Wayanad and the industrial areas
like Growth Centres and Industrial Parks will enjoy
the enhanced rate of subsidy viz. 25% subject to a maximum
of Rs. 25 lakhs for priority sector units and 10% up
to Rs.10 lakhs for non-priority sector units.
Investment in pollution control devices
shall be eligible for an additional 15% subsidy, subject
to a separate ceiling of Rs.5 lakhs.
The existing units undertaking expansion,
diversification and modification shall also be eligible
for subsidy at the above rates.
Incentives for Mega
Industrial Projects, Large Industrial Projects and Exemption
in Electricity Duty
In case of projects with capital
investment exceeding Rs. 50 crores, the Government
may consider a special package of incentives, except
tax-based incentives, on a case-to-case basis.
Waiver of Stamp
Duty and Registration Fees
All new units being set up in the
various industrial parks and Corridor/Zones will be
exempted from payment of stamp duty and registration
fee.
FDI and Large
Infrastructure Projects
A special package of incentives
may be considered by Government for channelising FDI
and for large infrastructure projects. Infrastructure
projects in private sector would also be eligible
for the set of incentives, if any, that are offered
to Government owned infrastructure projects.
Exemption from Electricity
Duty and EnhancedTariff
a. Exemptions from Electricity Duty
for five years to new industrial units from the date
of commencement of their commercial production (as
per G.O.(MS)No.71/90/ID dated 21-05-1990) will continue.
b. All new industrial units starting
commercial production between 01-01-2002 and 31-12-2006
will be charged for a period of five years the same
tariff payable at the time of commencement of their
commercial production irrespective of subsequent enhancements
of tariff.
