Industrial & Investment Policy of Assam (IIPA), 2019

Financial Support, Online

Industrial & Investment Policy of Assam, 2019 with the objective of specifying the procedures to be observed for getting incentives, sanction and disbursement and also for recovery of incentives if drawn irregularly or fraudulently. The period of validity and effective date of these guidelines shall be effective from 01-09-2019 and shall remain valid till the time Government deemed to be fit and proper.

Objective

The Vision and Objective of the policy is to encourage and support industrial development in the state via sustainable eco-friendly investment through capital formation, inclusive industrial growth and creation of gainful employment.
Through good governance and policy initiative, State Government is envisaging Assam as a preferred destination for investment.

Benefits

A Fiscal Incentives

State Goods and Service Tax (SGST) reimbursement:

“Reimbursement of 100% SGST paid through debit in electronic cash ledger account in the term of sub-section (1) of section 49 of Assam GST Act, 2017 as per the following scale:”

Limit of SGST Tax Reimbursement

Category	For units set up in areas other than special parks	For units set up in Plastic Park, Bamboo Park, Food Park, Tea Park, and other Parks developed by or in collaboration with State/ Central Government
Micro Enterprises	15 (Fifteen) years, subject to a maximum of 200% of Fixed Capital Investment	15 (Fifteen) years, subject to a maximum of 250% of Fixed Capital Investment
Small Enterprises	15 (Fifteen) years, subject to a maximum of 150% of Fixed Capital Investment	15 (Fifteen) years, subject to a maximum of 180% of Fixed Capital Investment
Medium & Large Enterprises	15 (Fifteen) years, subject to a maximum of 150% of Fixed Capital Investment	15 (Fifteen) years, subject to a maximum of 150% of Fixed Capital Investment

In case of a Mega unit to which customized/special incentives are given , the quantum of monetary ceiling that may be allowed shall not exceeds 200 % of fixed capital investment.

The benefit of tax reimbursement under the policy shall be subject to the condition that the unit after having availed of the benefit shall continue its production or operation at least for the next 5 (five) years not below 75% of the average production for the preceding 5 (five) years. In case the unit violates this condition, it shall be liable to make, the full amount of tax availed of by it during the period of eligibility, as if no tax reimbursement was ever available to it:

Provided that the provision of this clause shall not come into play if the loss in production is explained to the satisfaction of the authority concerned as being due to the reasons beyond the control of the unit: Provided further that a unit shall not be called upon to pay any sum under this clause without having been given reasonable opportunity of being heard."

B Other Incentives

Following are the incentives put in as the other incentives category in the Policy, namely, Power subsidy , Generating set subsidy, Stamp duty reimbursement , Technology Transfer and quality certification, Interest subsidy on working capital loan, Financial Assistance in MSME listed in Stock Exchange, Assistance for Environmental Compliance, Incentive to private sector Infrastructure developers and the aggregate/overall incentives from all these component shall not exceeds 100 % of the fixed capital investment. The overall ceiling does not include subsidy accruing to the unit from the SGST reimbursement.

Power subsidy Generating set subsidy Stamp duty reimbursement Technology Transfer & quality certification Interest subsidy on working capital loan Financial Assistance in MSME listed in Stock Exchange Assistance for Environmental Compliance Incentive to private sector Infrastructure developers

C Incentive for Employment Generation, Entrepreneurship

"To encourage employment of local youth in the industries, the state Government will provide an incentive of Rs.10000 (ten thousand) to the employer against each local youth employed by the unit. This shall be an one time incentive to the industries."

Eligibility Criteria and Procedure for Applying for Eligibility Certificate

a Notwithstanding anything contained in this Policy, units engaged in the manufacture of items as mentioned in Annexure–I of the policy document shared below shall not be eligible for any incentive under this Policy.
b Hotels/Resorts of 3-Star and above category, river cruise, and generation of power through green technology shall be eligible for incentives under the Policy.
c Units will have to employ minimum of 80% people of Assam in the Managerial Cadre and minimum 90% people of Assam in Non Managerial Cadre. The employment Certificate shall be obtain from the competent authority at the same time the unit should follow the existing Labour Laws as regards to the employment and wages in the unit.
d Eligible units will have to apply online for issuance of Eligibility Certificate within 6 (six) months from the date of Commencement of Commercial Production for availing the incentives under the Policy. The relevant website for online submission for Eligibility Certificate and other incentives shall be notified by the Department..

e All incentives/subsidies/concessions/financial support under this Policy shall be applicable to units registered as Company, Corporation, Cooperative, Partnership Firm, Proprietorship Firm, Trust, FPO/FPC, as well as units set up by the State Government. Central Public Sector Undertakings (CPSUs) shall not be eligible for incentives under the Policy.
f Any cash payments made for any transaction shall be treated as an ineligible investment amount.
g Subsidy shall be disbursed only to units that are functional at the time of disbursement.
h No right or claim for any incentives under the policy shall be deemed to have been conferred by the policy, merely by virtue of the fact that the unit has fulfilled on its part the conditions of the policy and the incentives/subsidies cannot be claimed as a matter of right.
i The incentives under the Policy cannot be claimed unless the Eligibility Certificate has been issued under the policy by the implementing agency concerned and the unit has complied with the stipulation/conditions of Eligibility Certificate to the satisfaction of the competent authority.

Application process:

01

Any person who proposed to set up a new unit and proposed to start its commercial production on or after 1st September 2019, shall intimate his/her intention online in the portal as per Form: 1.0

02

The Application for grant of Eligibility Certificate shall be submitted online to the concerned General Manager , District Industries & Commerce Centre , where the unit is located as per Form:2.0 and documents as per checklist at Form: 2.1 within 6 (six) months from the date of going into commercial production/operation. On submission of the application and mandatory documents the acknowledgement will be auto generated.

Claim Procedure:

Procedure for claiming different subsidies under the Policy is as indicated below:

A Submission of Investment intension

Any person who undertakes setting up a new unit shall furnish such information to the jurisdictional General Manager, District Industries & Commerce Centre (DICC) within 30 days in a prescribed format from the date of receipt of Acknowledgement of Industrial Entrepreneurs Memorandum (IEM), Udyog Adhar, etc , as the case may be. Such person shall also submit a quarterly statement of investment expenditure incurred for quarters ending June, September, December and March of each financial year till commencement of commercial production in a prescribed format.

B Claim procedure for State Goods and Service Tax (SGST) reimbursement

The claim procedure for State Goods and Service Tax (SGST) reimbursement will be as per Finance (Taxation) Department Notification No. FTX.113/2017/72 dtd. 19.01.2018 or other notifications to be issued by the Finance Department from time to time.

C Claim Procedure for all Incentives other than SGST reimbursement

Eligible units shall apply online / offline, as applicable, for incentives other than SGST reimbursement, within 6 (six) months from the date of issue of Eligibility Certificate.
Unit shall apply in prescribed application form online/offline, as applicable, on a quarterly basis to the concerned District Industries & Commerce Centre (DICC). The same shall be scrutinized and forwarded to the SLC with all relevant documents for approval. On approval of the proposal/s, same shall be forwarded to the Government for sanctions. The amount of subsidy shall be released through APDCL for necessary adjustment of bill/s of the unit/s.
The Subsidy on Generating set shall be given to the unit based on actual cost of Generating set. Copy of the Eligibility Certificate, copy of Tax Invoice for purchase of Generating Set, bank statement for payment and approval of Electrical Inspectorate for installation of Generating set are to be uploaded along with the claim.
The Stamp Duty Reimbursement shall be based on the actual Stamp Duty paid for purchase of land and execution of lease deed agreement. Copy of the Eligibility Certificate, receipt of registration fee & copies of the deeds are to be uploaded along with the claim.
The Technology Transfer and Quality Certification, ZED Certification subsidy shall be given based on the actual fee paid for Technology Transfer and Quality Certification. Copy of the Eligibility Certificate, Copy of MOU/agreement executed with the organization providing Technical Know-how/Quality Certification, Tax Invoice from the concerned agency along with bank statement for payment are to be uploaded along with the claim.
The Interest Subsidy on Working Capital Loan shall be given based on the Certificate from the Bank. Copy of the Eligibility Certificate & copy of Bank Certificate are to be uploaded along with the claim. The amount shall be released through a designated bank.
The subsidy for listing in BSE &NSE shall be given based on the actual expenses incurred for Public Issue. As such, expenses certified by BSE/NSE are to be uploaded along with the claim.
The Assistance for Environmental Compliance shall be given based on the actual expenses incurred for setting up of effluent treatment plant. As such, Copy of the Eligibility Certificate, Tax Invoice & Bank Statement of payment for the effluent treatment plant along with certificate from Pollution Control Board, Assam are to be uploaded along with the claim.
After approval of the claim by the appropriate committee, the subsidy amount will be transferred through Direct Benefit Transfer (DBT) as per availability of funds.