Export and Logistic Policy of Assam, 2019

Export, Logistics, Trade

After independence, Assam became a land-locked area putting it in a state of great geographical disadvantage. Assam is now connected the mainland of India through narrow Siliguri corridor which is also known as chicken neck. However, with the liberalization sweeping the Indian subcontinent, and in the age of regional economic cooperation, the region's land-locked isolation is being leveraged into a position of big advantage.

Assam has the unique locational advantage, being the closest landmass of vibrant economies of the South East Asian countries. On Act East, Assam is on its way to get some of the best infrastructure in Asia to facilitate the largest volume of trade between India, China, Myanmar, Bangladesh and other ASEAN countries. Assam will be the hub of all trade and commercial activities in South East Asia and the state will be a model for development to the rest of India as well as neighbouring countries.

Objectives:

The objectives of the policy are:

To boost exports where Assam has competitive advantage through increased market penetration as well as to explore new markets for the products of Assam;
To enhance the ease of doing exports through creation of simple, effective and efficient institutional mechanisms, simplified processes and efficient organization and coordination with the stake holders ;
To strengthen the export infrastructures of the state such as Inland Container Depots(ICDs), Border Trade Centres, Common Facility Centres, Integrated Cold Chain, Logistic Park, River ports and material handling facilities , Air Cargo facilities, quality testing labs, connectivity to ports, Integrated Cold Chain, etc ;
To establish product specific parks like Tea Parks , Bamboo Parks, Food park , Pharmaceutical parks, Plastic parks , etc; d. to setup a branch of Indian Institute of Foreign Trade in the state ;
To promote service sector exports by creating adequate infrastructure and training to utilize the state's large pool of available skilled human resources;
To promote frequent trade delegation , branding of Assam products , technology transfer , language learning institution , etc.;
To promote Assam's export to a higher trajectory with gainful employment ; and
To support and transform small business and artisans through cross border e-commerce.

Incentives:

State Government proposes to provide following subsidies/incentives for development of export from the State. These are:

1 Capital Investment Subsidy:

Capital Investment subsidy in form of reimbursement for creation of export Infrastructure like Multi Model Logistic Park ( MMLP), Logistic Park, Inland Container Depot (ICD), Container Freight Station (CFS), Air Cargo Facilities , Common Facility Centre , Pack house , Cold Storage , integrated Cold Chain facility , Irradiation facility , Individual Quick Freezing (IQF) facilities , Vapour Heat Treatment facilities , State of Art Quality Control Laboratory with NABL accreditation to support Export at 30% of the eligible fixed capital Investment subject to a ceiling of Rs.10 (ten) Crore.

Rate: 30% of eligible FCI Ceiling: Rs. 10 Crore

2 Capital Investment Subsidy for reefer vehicle, etc.

Capital investment subsidy in form of reimbursement shall be available for purchase of insulated, reefer transport/mobile pre cooling units at 30% subject to a ceiling of Rs.1 (one) Crore.

3 Capital Subsidy for setting up of Primary Production Centres:

Capital subsidy in form of reimbursement shall be available for the setting up of Primary Processing Centre ( PPC) for Agri-Horticulture produces at 30% subject to a limit of Rs.1 (one) Crore.

4 Subsidy for obtaining Quality Certification:

Subsidy in form of reimbursement shall be available for obtaining Organic certification, Quality certification, ISO, ZED, etc at 50 % subject to a ceiling of Rs. 50 (fifty) lakh.

5 Freight Subsidy:

Freight Subsidy in form of reimbursement shall be available on Air freight from the Airport of Assam to Foreign destination for the Agro-Horticulture Products, Food Processing, Ornamental fishes, Floriculture products, Handicraft & Handloom products, Tea, Jute, Bamboo & other products based on locally available raw materials of the State at 20% subject to a ceiling of Rs.50 Lakh only per annum for a period of five years per unit. Industries engaged in products based on raw materials from outside the State shall not be eligible for Freight Subsidy.

Agro-Horticulture Products Food Processing Ornamental Fishes Floriculture Products Handicraft & Handloom Tea, Jute, Bamboo

Rate: 20% reimbursement Ceiling: Rs. 50 Lakh p.a. Duration: 5 Years per unit

Industries engaged in products based on raw materials from outside the State shall not be eligible for Freight Subsidy.

Eligibility:

Incentives under the policy shall be applicable to the Proprietorial firm, Partnership firm, Cooperative Societies, Limited liability Companies (LLP), Private Limited Company , Limited Company, Trust, Non-Government Organization (NGO) , FPO/FPC as well as such infrastructure created by State Government. Central Government agency/ Public sector undertaking shall not be eligible for any incentives under the Policy. For eligibility, following are the essential conditions to follow:

Minimum Infrastructure Requirements

Infrastructure Type	Min. Land Area	Min. Investment
Logistic Park	a logistic park should have a single stretch of minimum 30 acre of land (usable for the purpose) for development, with minimum built up area of 3,00,000 sq ft. The minimum fixed capital investment should be Rs.30 Cr for development of infrastructure in the Logistic Park.	Rs. 30 Cr
Container Freight Station (CFS)/ Inland Container Depot (ICD)	minimum land area should be 10 acres	with minimum investment of Rs.30 Crores
Integrated Cold Chain facility, IQF, Irradiation, VHT, laboratory	minimum land area should be 1 acre	with minimum investment of Rs.10 Cr
Primary Processing Centre (PPC)	land area should be minimum of 1 bigha	with minimum investment of Rs.1 (one) Crore

General Conditions

a Minimum 80% employment of people of Assam in Managerial Cadre and minimum 90% in Non Managerial Cadre.
b The applicant unit should follow the existing rules & regulations related to environmental clearances, construction regulations, standard norms, Labour laws etc. from the competent authority.
c Applicant availing benefit under the Export & Logistics Policy will not be eligible for benefits of similar nature offered under any other policy/scheme of Govt. of Assam. They will be eligible for any incentive from Government of India.
d The applicant unit should have loan component of minimum 20% of the project cost, from any Bank or Financial Institution and should provide the project appraisal of Bank/Financial Institution to competent authority.
e Fixed Capital Investment means and includes investment in plant and machinery and land and building connected directly for the infrastructure. The investment in land shall mean the cost of land (used only for utilities) derived from registration value of land or the actual cost of the land, whichever is lower. While the proportionate stamp duty and registration fee shall for the part of the cost of the land.
f Units availing incentives under the policy shall continued their operation at least 5 (five) years from the date of receipt of the incentives under the policy. In case of closed down of the unit within the stipulated time, the amount so far released as incentives shall be recovered with prevailing rate of interest within three months.

How to Apply

1 All incentives under this policy can be claimed only after obtaining the Photo Identity Card from the concerned General Manager, District Industries and Commerce Centre.
2 The Committee shall scrutinize the application/s and approve the fiscal incentives under the policy.
3 A set of guidelines including application forms and procedures for getting various incentives will be issued separately.