Definition and Eligibility Criteria  

In tune with the Industrial Policy resolutions, 1997, of Government of Assam, the state Government has formulated a package of incentives for promotion and setting up industrial units in the State. The details of the package of incentives, definitions and eligibility criteria are given below:   

Period of Validity

The new package of incentives, herein referred to as "1997 Incentive Scheme", shall become effective from 1.4.97 and remain in operation for a period of five years or till such time as the Government may consider fit and proper. The Government also reserves the right to make any amendments to the scheme. 

Top

Effective Date

Effective date for the 1997 incentive Scheme shall be 1.4.97 and from that date the 1991 Incentive Scheme under the Industrial Policy 1991 resolution will cease to be operative unless otherwise provided for.   

The industrial units which are already availing incentives under 1991 Policy against Eligibility Certificate under the said scheme shall continue to be governed by the 1991 incentive scheme. Such units shall be defined as 1991 continuing industries. However, no application for issue of Eligibility Certificate under 1991 policy shall be accepted after 1.9.97 and no further Eligibility Certificate shall be issued to any unit under 1991 scheme after 31.3.98.   

Definitions

Ancillary Industry means an industrial unit which is engaged or is proposed to be engaged in the manufacture or production of parts, components, sub-assemblies, tooling or intermediates or rendering of services undertaking supplies or renders or proposes to supply or renders not less than 50% of its production or services as the case may be, to one or more other industrial undertaking and whose investment in fixed assets in plant and machinery whether held on ownership terms or on lease or on hire purchase, does not exceed Rs. 75 lakhs.   

Eligible Unit means only New Units set up on or after 1.4.97 and existing units undergoing expansion/diversification at the same place in the State of Assam on or after 1.4.97 shall be eligible for the incentives under 1997 incentives scheme provided that:   

A unit shall have employment of 80% people of Assam in the managerial cadre and 90% people of Assam in the non-managerial cadre and that over a period of 5 years from the commencement of commercial production such unit would take all effective steps to ensure 100% employment of people of Assam in non-managerial cadre and atleast 90% in managerial post. They would further give an undertaking that if these conditions are violated, the State Government subsidies/ incentives so availed by them would be fully refunded.   

The location of the Registered Office shall be within the State of Assam.   

Existing Unit means an industrial unit which is or was in commercial production at any time prior to 1.4.97 shall be considered as an existing unit for the purpose of the 1997 Incentives Scheme.   

Expansion of an industrial unit means additional fixed capital investment exceeding at least 25% of the capital investment of the existing unit. For the purpose of calculation, Gross value of all the capital investment made on land, building and plant and machinery of the existing unit will be taken into consideration. Expansion shall also imply an increase of at least 25% in the existing installed capacity as well as increase of additional employment of at least by  10%. Prior to going for expansion, the unit should be operating atleast at a minimum of 80% capacity during the three previous years and prior intimation to the concerned implementing agency for 1997 policy as given at para 4.7 should be given before going for such expansion.   

Diversification means separately identifiable investment made by an existing industrial unit in the fixed capital assets to set up a project for manufacturing of new product(s) provided that the additional investment in the fixed assets is not less than 25% of the gross fixed capital and increase of additional employment is at least by 10%.   

Modernisation means separately identifiable investment made by an industrial unit involving new/improved technology having a definite advantages in reduction of cost of production provided the additional investment in fixed assets should not be less than 25% of the gross fixed capital

The incentives available to the unit undergoing expansion/diversification/modernisation shall be for the additional investment made and/or the increase in production over the average of three previous years prior to the year when the unit goes for expansion/diversification as applicable. The year for this purpose shall mean a financial year. The units which have taken up expansion/diversification/modernisation plan prior to coming into force of this policy should intimate the concerned agency within three months from the date of implementation of the policy.   
   
100% Export Oriented Unit means an industrial unit which undertakes to export its entire production of goods subject to relaxation as permitted by Government of India from time to time.   

Finished Product means and includes, the item manufactured by the eligible unit as considered under the project/scheme approved by the concerned term lending agency and or by he implementing agency, together with by-product/scrap, which may get generated as incidental to and during the main production activity.   

Fixed Capital means and include cost of Land, Building including Factory shed, Godown, Laboratory, Plant and Machinery, Installation Charges and Pre-operative expenses capitalised, Electrical and such other equipment which are directly related to production activities.   

Government means the Government of Assam.   

New Unit means an industrial unit which has commenced commercial production on or after 1.4.97.   

Non -Eligible Unit means all industries which are mentioned in Schedule - 1 to this Policy as non-eligible.   

Physically Handicapped Person means blind, deaf & dumb and orthopaedically handicapped with fifty percent mobility.   

Raw Materials shall mean and include components, intermediate goods, substances, consumable stores required in the process of manufacture and packing materials utilised for packing of finished products by an eligible unit.   

Relief Undertaking Unit means an industrial unit declared as a relief undertaking by the Government of Assam under the Assam Industrial Relief Undertaking (Special Provision) Act, 1984 (Assam Act of 7 of 1984) from time to time or units declared sick by State Government/Director of Industries under any other scheme/Act of the Government.   

Schedule means a schedule to this scheme.   

Small Scale Industry (SSI) means an industrial unit where the investment in plant and machinery does not exceed Rs.60 lakhs.   

Small Scale Service Business Enterprises means an enterprise where the investment in plant and machinery does not exceed Rs. 5 lakhs.   

State means the State of Assam   

Tiny Industry means an industrial unit where the fixed capital  investment does not exceed Rs. 5 lakhs.

Top

Eligibility

All industries except those at schedule-I shall be entitled to assistance under the 1997 incentive scheme.   

Incentives under 1997 scheme shall be available to eligible units in the Private Sector, Assisted Sector, Joint Sector, State Public Sector and the Co-operative Sector. Central Public Sector Undertakings shall not be eligible for any incentives under the schemes.   

All New units as well as Existing units undergoinq Expansion/ Diversification/ Modernisation, Export Oriented Units shall be eligible for the 1997 Incentives Scheme.       

Relief Undertaking/Sick units shall be eligible for the incentives under 1997 incentive scheme for a maximum period of 3 (three) years. If any unit has already availed benefit of incentives for certain period under any previous Industrial Policies of the State Government as Relief Undertaking/Sick total period of 3 years for such unit will stand reduced by the period for which benefit as relief undertaking/ sick unit has already been availed under previous policies.   

The unit undergoing expansion/diversification/modernisation shall be eligible for incentives only for the additional investment made i.e. for the expanded/diversified/modernised portion of the existing unit.   

Eligibility Certificate

Eligibility Certificate is a certificate which shall be issued by the Udyog Sahayak of the Directorate of Industries/District Industries  Centre for S51 sector and the Assam Industrial Development Corporation Ltd. (AIDC) for the Medium and Large sector. This will be issued after ensuring that all the criteria for eligibility have been fulfilled to the full satisfaction of the concerned Udyog Sahayak.   

No right or claim for any incentive under the scheme shall be deemed to have been conferred by the scheme merely by virtue of the fact thai the unit has fulfilled on its part the conditions of the Scheme and the incentives/subsidies cannot be claimed as a matter of right.   

The incentives under the scheme cannot be claimed unless the Eligibility Certificate has been issued under the scheme by the Implementing Agency concerned and the unit has complied with the stipulations/conditions of Eligibility Certificate.   

The decision of the Implementing Agency, subject to such directions as Government may issue from time to time in this regard shall be final and binding   

Certificate for Employment

The Certificate of Employment would be given by the District Employment Officer of the district where the industrial unit is located. Where the office and production centre of industrial unit are located in more than one district, the Director of Employment and Craftsmen Training will issue the certificate of employment.   

Implementing Agency

The Implementing Agency for the 1997 Incentive Scheme in respect of the SSI Sector shall be the Director of Industries, District Industries Centres and for the Medium and Large Sector it would be AIDC Ltd.

Top

Procedure for Disbursement of Incentives

Separate guidelines for issuance of eligibility certificate along with the application forms and procedures for disbursement of incentives would be issued.   

Priority for Disbursement 

The disbursement of the incentives by the Implementing Agency shall be in accordance with the chronological order of approved claims. Priority shall however be given to SSI Units and 100% Export Oriented Units.   

Interpretation

The decision of Industries Department, Government of Assam, as regards interpretations in this policy resolutions/incentives scheme shall be final. The State Government reserves the right to declare any more incentives or new guidelines or amend any provision(s) including withdrawal of any of the incentives/subsidies as and when necessary for development of industries in the State from time to time under the provision of the Policy.   

Right of the State Government

The State Government reserves the right to review the matter regarding sanction/disbursement of subsidies/incentives to the eligible industrial unit(s) and in this connection the State Government's decision shall be final.

Top