Central/ State Incentives

Central Incentives:

The Govt. of India, Department of Industrial Policy & Promotion (DIPP) has announced new incentive package called "North East Industrial and Investment Promotion Policy (NEIIPP), 2007", effective from 01.04.2007. Under this Policy, the following incentives are provided for setting up industries in the North East Region:

• 100 percent exemption from payment of excise duty and income tax for ten years from the date of commercial production.

• Freight Subsidy @ 90% of transport costs of raw materials and finished goods calculated between Siliguri/ New Jalpaiguri and Factory site and 50% of transport costs of finished goods movement within the North-East Region, for a period of 5 years from the date of commercial production.

• Central capital investment subsidy @ 30 percent on plant and machinery.

• Reimbursement of 3 percent interest paid on working capital loan for a period of 10 years from the date of commercial production.

• Comprehensive insurance scheme-100 percent reimbursement of insurance premium paid.

There is a State Level Committee (SLC) under chairmanship of State Industry Secretary to recommend the cases. NEDFi is disbursing the cases on behalf of Govt. of India. Efforts are made to hold SLC meetings regularly in order to recommend eligible cases in a timely manner. Wherever necessary, the matter is followed up with NEDFi and DIPP.

Central Packages of incentives during 2008-09 to 2015-16:

Source: Economic Review of Tripura 2015-16

State Incentives:

The State Govt. has also announced new incentive package called "Tripura Industrial Investment Promotion Incentives Scheme, 2012", effective from 01.04.2012. Under this Policy, the following incentives are provided for setting up industries in Tripura:

A) State Capital Investment Subsidy @25 percent on Fixed Capital Investment on Land and Civil works with additional subsidy @2.5 percent to ST, SC and Women Enterprises, subject to a ceiling of Rs.50 Lakhs per unit. This is in addition to the benefit as provided under NEIIPP, 2007. For service sector units capital investment subsidy @25 percent on land, civil works and equipments within the overall ceiling of Rs.50 lakhs.

B) State Capital Investment Subsidy for Thrust Sector industrial units @35% on Fixed Capital Investment on Land, Civil works & Plant & Machineries / Equipments, subject to a ceiling of Rs.60 Lakhs per unit (w.e.f 01/04/2016).

• Employment Cost Subsidy for Thrust Sector industrial units: W.e.f 01/04/2016, the subsidy shall be given to an eligible enterprise for 5 years from the date of commercial production.

(a) 100% reimbursement of expenditure for Micro & Small Enterprise on account of contribution towards ESI and EPF Schemes subject to employment of 20 and more skilled and semi-skilled workers who are domicile of the State.

(b) 50% reimbursement for large enterprise on account of contribution towards ESI and EPF Schemes for a period of 5(five) years subject to employment of more than 50 skilled and semi-skilled workers who are domicile of the State.

• Industrial Promotion Subsidy equal to the net amount (net of input taxes) of the Tripura Value Added Tax (VAT), Central Sales Tax (CST) and any other commodity tax actually paid by an enterprise to the State Government on sale of finished goods, subject to overall ceiling of Rs.50 lakhs per enterprise per annum. The subsidy shall be given to an eligible enterprise for 5 years from the date of commercial production.

• 15 percent Procurement Preference to local Industrial enterprises after comparison on landed price of all bidders. This benefit is available only to enterprises achieving minimum 20% value addition within the state.

• Reimbursement of Interest on term loans actually paid to banks/ financial institutions to the extent of @3% subject to a ceiling of Rs.1.50 lakhs per annum for 5 years.

• Reimbursement of Power Charges for 5 years @15 percent of the power charges actually paid by the enterprise, subject to a ceiling of Rs.12 lakhs per year.

• State Transport Subsidy for transportation of raw materials and finished products on the pattern of Central Transport Subsidy for 5 years. The State Subsidy shall cover the portion for which Central Subsidy is not available. For instance, if Central Subsidy is 90 percent, State Subsidy shall be 10 percent.

• 85 percent Exemption from the payment of Earnest Money and Security Deposits to local enterprises on tenders floated by State Govt. Agencies.

• One-time full Reimbursement of Standard Certification Charges/Fees.

• Partial Reimbursement of floor space rentals for IT Industries (employing a minimum of 15 persons) for 5 years @20 percent to the rentals actually paid by the enterprise, subject to a ceiling of Rs. 12 lakhs per unit.

State Packages of incentives during 2008-09 to 2015-16:

Source: Economic Review of Tripura 2015-16