From the date the New Industrial Policy of Mizoram, 2000 will come into force, a new package of incentives (herein after referred to as Incentive Scheme of 2000) shall come in-to force and shall remain in operation till such time the State Govt., gives due notice towards discontinuance of its operation or till amendments are made to the Scheme. The commitments already made under this Scheme shall not be adversely affected by any such discontinuation or amendment.

Eligibility

AlI new Industrial units in the private, Stale public Sector and in Joint Sector set up on or after 24.12.1997 will be eligible under Incentives Scheme of 2000.

Existing industrial units undertaking expansion, modernization or diversification made after 24.12.1997 shall be eligible for the incentive for the expanded portion only under this Scheme.

To be eligible for this incentives, the Industrial units should be located and have their registered offices in the State of Mizoram.

Those existing Industrial units which have already availed incentives similar in nature under the Incentives Scheme of 1989 and thereafter shall not be eligible under Incentives Scheme of 2000.

Special preference shall be given in the matter of incentives available from State and Centre to those units located in Growth Centre, EPIP Industrial Estates and such other areas identified and declared as such by the State Government.

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New Units

An industrial units which has undertaken one or more 'effective steps' on or after 01.04.2000 would be considered as a new unit for the purpose of Incentive Scheme of 2000.

Explanation

Effective Steps: Effective steps means one or more of the following steps:

60 p.c. or more of the capital issued for the industrial unit has pakj up. Substantial part of the factory building has been constructed A firm order has been placed for substantial part of the plant and machinery required for the industrial unit.

Existing Units

Any industrial unit which is/was in commercial production at any time prior to 24.1.1997 would be considered as an existing unit for the purpose of incentive scheme of 2000.

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Continuance of Existing Incentives

The existing incentives offered under the New Industrial Policy of Mizoram. 2000 shall not be applicable to units which were sanctioned incentives under the rules of incentives/subsidies under the Industrial Policy of Mizoram State, 1989. All such units will continue to be governed by the provisions of sanctions already issued under the relevant rules of the Industrial Policy of 1989. However, the units which were set up prior to the commencement of this Scheme, but have not so far availed any of the benefits under afore-mentioned rules may chose to exercise one-time option in favour of either of the Schemes

The incentives offered under the Rules for the grant of incentives/subsidies under the Industrial Policy of Mizoram State 1989 are as follows and all new units set up on or after 24.12.1997 shall be eligible to these incentives:

Subsidies on the cost of Project Report (Appendix-A)

Land subsidy (Appendix-8)

Factory rent subsidy (Appendix-C)

Manpower development subsidy (Appendix-D)

Interest subsidy (Appendix-E)

Power subsidy (Appendix-F)

Subsidy on Power Line (Appendix-G)

Subsidy on Power Generating set (Appendix-H)

State Transport subsidy on Plant and Machinery. (Appendix-1)

Existing State Rules for grant of incentives/subsidies also will be reviewed by the Government to incorporate suitable amendments conforming with the New Industrial Policy of Mizoram, 2000.

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New Incentives

In addition to the existing incentives, the government of Mizoram offers further incentives under the New Industrial Policy of Mizoram 2000 as follows:

State Capital Investment Subsidy

An investment subsidy on the total investment made in plant and machinery shall be provided on a graded scale to the new industrial units. It will be available to both new units as well as to existing units carrying out expansion, diversification and modernisation activities.

The graded subsidy will be as under

State Sales Taxes shaft be exempted for a period of 7 year from the date of commencement of actual commercial production. However, for the units set up in the thrust area, the exemption period will be 10 years.

Exemption of Central Sales Taxes and Excise duties will be governed by various Notification /Orders issued by Government of India in this regards.

Price Preference

Price preference well be given for the products of local units as per the provision of Mizoram Preferential Stores Purchase Rules 1994. Broadening and depending of the coverage of the Rules will be carried out.

International Standard Organization/Bureau of Indian Standard certification:

The State government shall encourage the small Industries to obtain Bureau of Indian Standard (BlS)/ International Standard Organization (ISO) Certificate for their product to enable them to compete at the State and National levels. For this purpose, the State Government shall re-imburse 100% of the expenditure incurred on registration fee, testing fee etc., and purchase of testing equipment subject to actual up to the maximum limit of Rs.50,000/-.

This limit shall be Rs.1,00,000/- for units set up in the thrust areas.

Subsidy on registration fee of promotion council, commodity boards and chamber of commerce:

The amount spent by an industrial unit in obtaining a registration with recognised promotion council, commodity board, chamber of commerce etc., shall be re-imbursement to the unit subject to a limit of Rs.20,000/- or the actual registration fee which ever is less.

Incentives for export oriented units:

For 100% Export Oriented Units (EOU).

An additional 5% capital investment subsidy for investment on plant and machinery subject to a maximum of Rs.5.00 lakhs will be made available to 100% EOUs.

Other units with an export commitment of less than 100% of the total turn over.

An additional 2% of capital investment subsidy for investment of plant and machinery subject to a maximum of Rs.2.00 lakhs will be make available to units of less than 100% export commitment.

State-Level Review Committee

This Policy statement shall be reviewed and recommendations made annually for adjustments and for providing additional policy support to the industry by a State-level Review Committee to be headed by Secretary, Industries Department, Government of Mizoram with Members drawn from various Departments involved in Industrial development of Mizoram. The State Pollution Control Board, Environment and Forest Department, Geology and Mining Wing of Industries Department and Mizoram Industries Association will also be represented in the Committee.

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Appendix-A : Subsidy on Cost of Project Report

Eligibility Condition

An Industrial unit is eligible to claim subsidy only for the amount of cost of Project Report already paid to the concerned consultant / agency as approved / recognized by the Government of India /Director of industries.

An Industrial unit is eligible to claim the subsidy only after taking effective steps.

Limit of Subsidy

Subsidy on cost of Project Report to an Industrial unit shall be:-

90 per cent in case of tiny unit subject to a ceiling of Rs. 5.000/- per unit

75 per cent in case of small scale and ancillary units and small scale service establishments subject to a ceiling of Rs. 25.000/- per unit.

50 per cent in case of medium and large scale units subject to a ceiling of Rs. 50.000/- per unit

Application for Claim

Application for grant of subsidy on cost of Project Report shall be submitted in duplicate to the concerned District Office in the prescribed form under Appendix 'A'

Selection Commmittee

Composition of the State Level Committee shall be: -

(1) Secretary, Industries Department - Chairman
(2) Secretary, Finance Department or his
not below the rank of Deputy secretary - Member
(3) Branch Manager. Industrial Development
(4) Bank of India, Mizoram - Member Branch
(4) Representative from North Eastern - Member
Industnal Consultants Ltd.
(5) General Managers, District Industries - Members Centres
(6) Director of Industries - Member Secretary

[Detailed procedure incorporated in the rules for the Grant of Incentives /Subsidies under the Industrial Policy of Mizoram te, 1989]

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Appendix-B : Eligibility Condition

An Industrial Unit is eligible to claim subsidy on the amount of lease charge /fee on developed land allotted to the unit on the amount spent for development of the allotted undeveloped land within the Industrial Estate. Industrial Growth centre or Industrial Area declared by the Industries Department.

Limit of Subsidy

25% of the lease charge/fee of allotted developed/undeveloped land will be subsidized for a period of 5 years.

25% of the amount spent by the unit on development of undeveloped land allotted to the unit will be subsidised.

Application for Claim

Application for grant of land subsidy shall be submitted in duplicate to the concerned District office in the prescribed form under Appendix 'B'

Selection Committee

Composition of the State level Committee shall be :

Secretary, Industries Department - Chairman

Secretary, Finance department or his

Nominee not below the rank of Deputy Secretary - Member

General Managers, District Industries - Members
Centres

Director of Industries - Member Secretary

[Detailed procedure incorporated in the rules for the Grant of Incentives /Subsidies under the Industrial Policy of Mizoram State, 1989]

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Appencix-C : Factory Rent Subsidy

Eligibility Condition

The Subsidy can be claimed by new tiny and scale unit occupying the butt up factory sheds within the declared Industrial Estates / Industrial Growth Centre / Industrial Area on monthly rent basis.

The Subsidy can also be claimed by the existing tiny and small scale units on rants of butt up factory sheds occupied for the expanded portion only.

The Subsidy can be claimed by the aforementioned unto for a period of 5 years from the date of commercial production.

Limit of Subsidy

Subsidy on factory Rant to an Industrial units shall be 50 per cent of the per cent of the duly assessed rent of factory shed subject to a ceiling of Rs. 30,000/- per unit per year.

Application for Claim

Application for grant of Subsidy on Factory Rent shall be submitted in duplication to the concerned District Office in the prescribed form under Appendix 'C'

Selection Committee

Composition of the State level Committee shall be :

Secretary. Industries Department - Chairman

Secretary, Finance department or his - Member
Nominee not below the rank of Deputy Secretary

General Managers, District Industries Centres - Member

Director of Industries - Member Secretary

[Detailed procedure incorporated in the rules for the Grant of Incentives /Subsidies under the Industrial Policy of Mizoram State, 1989]

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Appendix -D : Manpower Development Subsidy

Eligibility Condition

New and existing Industrial units which have already gone into production which send their workers to Institutes or registered / licensed Industrial units outside Mizoram duly approved by the Director of Industries for training for upgradation of their skill are eligible to claim the subsidy.

An Industrial unit is eligible to claim subsidy on expenditure for managerial and technical training of its workers.

An Industrial units to claim the subsidy should give an undertaking that the trained workers will continue to be employed by it after training atleasts for a period of 3 years.

An industrial unit to claim the subsidy should take poor approval of the Director of industries before sending of its workers for training.

Limit of Subsidy

Subsidy shall be limited to 50 per cent of the actual expenditure for training subject to a ceding of Rs. 3000/- per trainee and Rs. 25,000/-per units per year.

Application for Claim

Application for grant of Subsidy on Manpower development shall be submitted in duplicate to the concerned District Office in the prescribed form under Appendix 'D'

Selection Committee

Composition of the State level Committee shall be :

Secretary, Industries Department - Chairman
Secretary, Finance department or his
Nominee not below the rank of Deputy Secretary - Member
General Managers, District Industries - Member Centres
Director of Industries - member Secretary

[Detailed procedure incorporated in the rules for the Grant of Incentives /Subsidies under the Industrial Policy of Mizoram Stale, 1989]

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Appendix-E : Interest Subsidy

Eligibility Condition

An Industrial unit is eligible to claim subsidy only on the amount of interest on term loan and working capital loan already paid to the concerned Banks/ Financial Institutions/ Agencies.

An Industrial unit is eligible to claim subsidy only for the amount of interest where the repayment is made in time. No subsidy can be claimed for overdue repayment.

An Industrial unit is eligible to claim subsidy on interest on term loan and working capital loan for 5 years from the date of commissioning of the units.

Limit of Subsidy

The interest on loan paid by an industrial unit in excess of 8 % per cent shall be subsidized up to a maximum of 4 per cent.

Subsidy shall be limited to a claim on a total amount not exceeding Rs. 3,60,000/- paid by an industrial unit towards interest on term loan in a full year. However, for working capital loan, the total amount paid towards interest on which subsidy can be claimed shall be limited to Rs. 1,20,000/- in a full year.

Application for Claim

Application for grant of interest subsidy shall be submitted in duplicate to the concerned district Office in the presented form under Appendix 'E'

Selection Committee

Composition of the State level Committee shall be:

Secretary, Industries Department - Chairman
Secretary. Finance department or his - Member
Nominee not below the rank of Deputy Secretary
Managing Director, Zoram Industrial - Member
Development Corporation
Branch Manager, State Bank of India - Member
Aizawl Main Branch
General Managers. District Industries - Members
Centres
Director of Industries - Member Secretary

[Detailed procedure incorporated in the rules for the Grant of Incentives /Subsidies under the Industrial Policy of Mizoram State, 1989]

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Appendix -F : Power Subsidy

Eligible Condition

Subsidy is eligible for charges on power consumed for Industrial production. A separate energy meter should be installed for the industrial purpose,

The industrial unit should have power supply connection from authorized Department/ Agency.

No subsidy is eligible for power consumed for domestic lighting and other purposes.
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subsidy can be claimed by an industrial unit for 5 years from the date of commissioning of the unit

Limit of Subsidy

60 per cent of total expenditure on power consumption in case of tiny, small scale and ancillary units.

50 per cent of the total expenditure on power consumption in case of medium scale unit.

30 per cent of the total expenditure on power consumption in case of large scale unit.

Application for Claim

Application for grant of Power Subsidy shall be submitted in duplicate to the concerned District Office in the prescribed form under Appendix 'F'

Selection Committee

Composition of the State level Committee shall be :

Secretary, Industries Department - Chairman
Secretary, Finance department or his - Member
Nominee not below the rank of Deputy Secretary
Chief Engineer. Power& Electricity Dept. - Member
Mizoram or his nominee not below the rank of Executive Engineer
General Managers, Distinct Industries - Members
Centres
Director of Industries - Member Secretary

[Detailed procedure incorporated in the rules for the Grant of Incentives / Subsidies under the Industrial Policy of Mizoram State, 1989]

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Appendix-G : Subsidy on Power Line

Eligible Condition

An Industrial units is eligible to claim subsidy on cost of drawal of power line from the main power lines to the site of the Industrial units/ factory shed which is executed by the approved Department/ agency.

Limit of Subsidy

Subsidy on costs of drawal of powerlines to an Industrial units shall be limited to 50 per cent of the actual expenditure to a ceiling of Rs. 50,000 /- per units.

Application for Claim

Application for grant of subsidy on costs of drawal of powerlines shall be submitted in duplicate to the concerned District Office in the prescribed form under Appendix 'G'

Selection Committee

Composition of the State level Committee shall be :

Secretary, Industries Department - Chairman
Secretary, Finance department or his - Member
Nominee not below the rank of Deputy Secretary
Chief Engineer, Power & Electricity Dept. - Member
Mizoram or his nominee not below the rank of Executive Engineer
General Managers, District Industries - Members
Centres
Director of Industries - Member Secretary

[Detailed procedure incorporated in the rules for the Grant of Incentives Subsidies under the Industrial Policy of Mizoram State, 1989]

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Appendix-H : Subsidy on Power Generating Set

Eligible Condition

An Industrial unit is eligible to claim subsidy on the cost of captive generating set and installation charge thereof actually used for industrial purpose.

The captive generating set for which subsidy claimed should be brand new and purchased directly from the manufacturers or its regional/ local agent.

In the case of second hand generating set, the cost of the generating set shall be calculated on the basis of the life of the generating set and the exact depreciated value.

The installation of the generating set, on whose charge the subsidy to be claimed should be executed by the supplier of the generating set or its regional/ local agent or other approval agency.

Limit of Subsidy

Subsidy on cost and installation charge of captive generating set to an industrial unit shall be limited to 50 per cent of the cost of generating set and installation charge thereof subject to a ceiling of Rs. 3,00,000/-perunit

Application for Claim

Application for grant of subsidy on costs of generating shall be submitted in duplicate to the concerned District Office in the prescribed form under Appendix 'H'

Selection Committee

Composition of the State level Committee shall be:

Secretary, Industries Department - Chairman
Secretary, Finance department or his - Member
Nominee not below the rank of Deputy Secretary
Chief Engineer, Power& Electricity Dept - Member
Mizoram or his nominee not below the rank of Executive Engineer
General Managers, District Industries - Members
Centres
Director of Industries - Member Secretary

[Detailed procedure incorporated in the rules for the Grant of Incentives / Subsidies under the Industrial Policy of Mizoram State, 19891]

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Appendix - I : State Transport Subsidy on Plant & Machineries

Eligible Condition

A new industrial unit is eligible to claim the subsidy on actual cost of transportation of plants and machineries from place of purchase to location of the unit.

An existing industrial units is eligible to claim subsidy on actual cost of transportation of plants and machineries for the expanded portion only from place of purchase to location of the units.

For movement of plants and machineries from outside the state actual costs of transportation by railway or on road or both from place of purchase to location of the industrial units is eligible for the subsidy.

For movement of plants and machineries within the state, actual costs of transportation on road from the godown of the approved supplier/local agent of the manufacturer of the plants and machineries to location of the industrial units is eligible for subsidy.

For the cost of transportation on road, the cost of transportation charged by the road transport agency approved by the Director of Industries or the rate of transportation approved by the Director of Industries will be eligible.

Limit of Subsidy

Subsidy on cost of transportation of plants and machineries shall be 50 per cent of the actual cost of transportation by railway or on road or both.

Application for Claim

Application for grant of State Transport Subsidy on plant and machineries shall be submitted in duplicate to the concerned District Office in the prescribed form under Appendix 'I'

Selection Committee

Composition of the State level Committee shall be :

Secretary, Industries Department - Chairman
Secretary, Finance department or his - Member
Nominee not below the rank of Deputy Secretary
Director of Transport, Mizoram - Member
Superintendent, railway out Agency - Member
General Managers, District Industries - Members
Centres
Director of Industries - Member Secretary

[Detailed procedure incorporated in the rules for the Grant of Incentives / Subsidies under the Industrial Policy of Mizoram State, 1989]

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