PACKAGE SCHEME OF INCENTIVES 1997 - SMALL SCALE INDUSTRIES
1. State Capital Investment Subsidy
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State capital investment subsidy on cost of land, buildings, plant and machinery will be provided to tiny and SSI units at the rate of fifteen percent of the fixed capital, subject to a ceiling of Rs.3.5 lakhs.
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In the event of Central Government granting similar such subsidy and State Government subsidy as above being greater than the same, subsidy of the State Govt. would be limited to the difference between the two subsidies.
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Any unit with an export commitment at not less than twenty five percent of the total turnover will be eligible for an additional five percent investment subsidy subject to an overall ceiling of Rs.5 lakhs.
2. Development Subsidy
2.1 Development Subsidy will be provided at a rate of ten percent of the fixed capital investment, as defined in para 1.1 above subject to a ceiling of Rs.1.5 lakhs, for the actual expenditure on items listed below.
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Cost of pollution control equipments etc.
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Fifty percent of the fees (excluding recurring royalty) paid for the procurement of know- how from a well established and approved Research and Development Organisation.
3. Subsidy on the cost incurred for the Feasibility study and project reports
Subsidy will be provided at hundred percent for meeting the cost incurred on the preparation of feasibility/project report subject to a maximum of Rs.25,000 provided that the report is prepared by a Government approved agency.
4. Interest subsidy.
4.1 A Subsidy on interest payments to banks/financial institutions will be provided at the rate of four percent on term loans0Excluding working capital loans) availed by an entrepreneur for setting up of approved industrial units subject to a maximum of Rs.10, 000 per month for a period of 5 (five) years from the date of disbursement of the loan.
4.2 This subsidy will be in the form of re-imbursement of actual repayments made.
5. Local Employment Promotion Grant
5.1 Government will reimburse annually up to thirty percent of the realistic wage bill for local tribal employees over and above the stipulated number of local tribal employees in the Industrial Policy as specified in the eligibility criteria (para D.2 1) (a)
D.2.1 This grant would be for a period of three years from the date of entertainment of such staff and would only be given to those units where either investment in plant and machinery exceeds Rs.5 lakhs. Or the number of employees engaged in manufacturing sector exceeds 20 (twenty) numbers. The grant will be subject to a ceiling of Rs.50, 000 annually.
5.2 Fifty per cent of the cost incurred on the training of local tribal employees will be reimbursed subject to the following.
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Such trained person being absorbed in the unit failing which the unit will refund the subsidy amount paid for the same.
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Training is conducted in an Institute approved by the State Government.
6. Subsidy on Power.
6.1 Subsidy on power tariff will be provided at the rates of thirty percent and twenty five percent for loads upto 2 MW and loads above 2 MW respectively for a period of 5 (five) years from the ate of commercial production. The subsidy will be limited to a maximum of Rs. Two lakhs annually. This subsidy will be granted on the basis of actual consumption of power for the manufacturing process substantiated with requisite details and diagrams.
6.2. Subsidy up to fifty percent of the cost of generating sets including non-conventional energy generating sets, subject to a ceiling of Rs.50, 000/- per unit will be granted to SSI units in the non-electrified rural areas provided the unit produces a Certificate fro Me.S.E.B.
6.3 In case of project is located in an area, which requires the drawal of the power line of 1 KV and above, then the Government will reimburse the cost incurred on the drawal of such a power line including the cost of transformers, if any, subject to a maximum limit of Rs. One lakh and provided that the location has been approved by the Government.
6.4 Fifty percent of the cost incurred on service connection will be reimbursed subject to a maximum of Rs.20, 000/- for each industrial unit.
7. Subsidy on cost incurred on quality control measures
7.1. Cost of Laboratory Equipment for the purpose of quality control and ISI certification, subject to a maximum of Rs.10, 000/- per unit will be reimbursed in cases where it does not form part of the project cost.
7.2 Export oriented units committing to export at l4east fifty percent of the value of the turn over will be eligible for an additional reimbursement of Rs.1,00,000/- against such quality control measures.
8. Sales Tax Exemption
[Replaced
by The Meghalaya Industries (Tax Remission)
Scheme, 2006]
9. Lower rate of Meghalaya Finance Tax [Replaced by The Meghalaya Industries (Tax Remission) Scheme, 2006]
To encourage the local manufacturers in the State, the rate of Meghalaya Finance Tax will be lowered down from 12% to 4%, bringing it at par with CST rate so that such manufacturers can compete with products coming from outside the State. Such reduction will be limited to only such selected items which are being manufactured or likely to be manufactured locally within the State as may be notified by the Government from time to time
10.
Additional
10.2. Approved 100% export-oriented units (EOUS) will be entitled to receive an additional sales tax exemption for 1 (one) more year over the above the eligible period as indicated in para 8 and 10. above.
11. Price Preference
Price preference in accordance with the existing Meghalaya Preferential Stores Purchase Rules 1978 will be allowed for all eligible units.
12. Exemption from Stamps Duty
An exemption on Seventy-five percent of the applicable stamp Duty for the Small/tiny scale units will be provided to assist an entrepreneur in executing deed (s) for financial assistance from Banks and Financial Institutions.