INDUSTRIAL POLICY

OBJECTIVES :

• To create conditions for rapid industrial development and a climate conducive for investment
• Create gainful employment opportunities for local population.
• Develop human resources and bring about improvement in the quality of life by promoting industrial ventures in sectors in which the State has a comparative advantage.
• Develop entrepreneurial and other technical skills of the available human resources by setting up training centers in relevant sectors as also by enlisting support from reputed national and regional training centers.
• Develop industrial infrastructure in selected areas by providing common facilities in a compact area for specialized categories of industrial units. Provide other critical infrastructure such as power, water, communications, etc
• Promote export-oriented industries with a view to exploit the emerging market opportunities in the neighboring countries.
• Develop marketing facilities for industrial products.
• Encourage large and medium scale mother industries in the public, private, joint and assisted sectors to create an industrial base making use of the available resource base of the State in selective categories compatible with the local environment and ecology.
• Develop village and Small Scale Service and Business Enterprises (SSSBE) to provide self-employment to unemployed youth.
• Develop and promote Tourism Industry in the State
• Revive and rehabilitate sick industrial units in the State.
• Develop food-processing industry by facilitating forward and backward linkages.
• Expedite formalization and development of cross border trade with Myanmar.
• Provide investor friendly environment by removing procedural bottlenecks and legal hurdles.

THRUST AREAS :

• Food Processing Industries
• Tourism Industry
• Agro-based Industries
• Mineral based Industries
• Handloom and Handicrafts
• Sericulture
• Floriculture
• Electronics and Information Technology
• Pharmaceuticals
• Petrochemicals
• Bio-tech Industries

INCENTIVES :

1. Power Subsidy

Subsidy on power tariff will be provided at the rates of 30% and 25% for connected loads upto 2 MW and above 2 MW respectively for a period of 5 years from the date of commercial production subject to a maximum ceiling limit of Rs.2 lakh annually. This will be a reimbursement scheme on a actual consumption of power for manufacturing process substantiated with requisite details.

2. Drawal of Power Line :

Cost of drawal of 33/11 KV line to eligible industrial unit shall be reimbursed subject to a ceiling of Rs.2.00 lakh provided the location is outside the notified developed infrastructure and is provided by the Government. This subsidy shall be available only once to the eligible unit.

3. Subsidy for Feasibility Study Cost :

Subsidy will be available at the rate of 50% of the cost of Detailed Reports subject to a ceiling of Rs.1.00 lakh, which shall be eligible only for new units with investment in plant & machinery above Rs.25 lakh provided the report is prepared by a Government approved Industrial Consultants.

4. Manpower Subsidy :

Government will reimburse upto 25% of the actual wage bill for local tribal employees employed by eligible units upto three years from the date of entertainment subject to a maximum ceiling of Rs.1.00 lakh annually. This grant would be for a period of five years from the date of entertainment of such staff and would be given to those units where the investment in plant & machinery exceeds Rs.10.00 lakh and the number of employees engaged in the unit exceeds 20 (twenty) numbers and where the at least 50% of the employees are local tribal youth. Units availing subsidy under this scheme shall take all effective steps to ensure 75% employment of local youth over a period of five years. This subsidy will be admissible on reimbursement basis for only those employees who complete one year of regular employment in the unit.

5. Subsidy Incentives for 100% Export Oriented Units (EOU) :

An additional 5% capital investment subsidy subject to a maximum ceiling of Rs.3.00 lakh.

6. Subsidy for Quality Control measures :

Cost of laboratory equipment for the purpose of quality control and ISI/BIS/ISO 9000 certification will be reimbursed subject to a maximum ceiling of Rs.50,000/- in cases where it does not form part of the project cost for SSI and Rs.1.00 lakh in case of Large & Medium unit.

7. Stamp Duty Exemption :

50% Stamp Duty and Registration Fee for securing loans from Financial Institutions including Mortgage of fixed assets shall be exempted from the Stamp Duty Act for a period of 5 (five) years.

8. Price Preference :

Price preference of 15% and exemption of Earnest Money for purchases shall be admissible to all eligible units under Govt. Store Purchase Program.

9. Stipendary Support for EDP :

Stipend at the rate of Rs.500/- per month per trainee shall be provided for training of 100 youth annually for special EDP to be conducted by Govt. approved/recognized Institutions subject to the conditions that the training period shall not be less than 3 months duration.

PERIOD OF VALIDITY :

The new package of incentives, referred to as "Incentives Scheme-2000", shall become effective from the date of issue of notification of the policy and remain in operation for a period of five years or till such time, as the Government may consider fit and proper.

ELIGIBILITY :

• SSI units
• Tiny units
• Small Scale Service & Business Enterprises (SSSBEs)
• Sick Units/Relief Undertaking Units subject to a maximum period of 3 years.
• Large and Medium sector units
• Export Oriented Units
• Units undergoing Expansion/Diversification/Modernization