Assam Subsidy For Infrastructure Sector

The industrial policy, formulated by the Asom Gana Parishad-led government, has also come up with a Special State Capital Investment Subsidy Scheme (SCIS) up to 30 per cent of the capital investment on land, building and plant machinery subject to a ceiling of Rs 10 lakh.

The power subsidy will be for 5 years from the date of starting commercial production. Power production with an installed capacity up to 1 mw will get a subsidy of 50 per cent subject to a ceiling of Rs 5 lakh per industrial unit per year. Projects between 1mw and 5 mw will get a 30 per cent subsidy and the ceiling will be Rs 15 lakh per unit per year and those above 5 mw will get 20 per cent subject to a ceiling of Rs 30 lakh per unit per year.

The state government has also decided to provide interest subsidy on working capital. Five per cent interest subsidy will be given to SSIs with an investment of Rs 60 lakh on working capital for loans obtained from banks or financial institutions. This subsidy will be for a period of three years from the date of commercial production and maximum benefit that can be availed per annum is Rs 3 lakh per unit.

For large and medium-scale industries, there is provision of sales tax exemption for seven years subject to a maximum of 100 per cent of fixed capital investment. There will be sales tax exemption for seven years for new SSI units subject to a maximum of 150 per cent of fixed capital investment. Sales tax exemption will also be provided for units undergoing expansion, diversification or modernisation.

The Assam government has also come forward with equity participation in the assisted sector. The Assam Industrial Development Corporation (AIDC) and the Assam Small Industries Development Corporation (ASIDC) will participate in the equity up to 20 per cent of the issued capital of the company subject to a ceiling of Rs 20 lakh in any viable project where the cost does not exceed Rs 5 crore. AIDC will pick up equity in medium and large industries and ASIDC in SSIs.

A new unit with fixed capital investment of more than Rs 3 crore and set up in a district where no medium or large industries exist will be given