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Central Subsidies
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Capital Investment Subsidy Scheme
INTRODUCTION
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The scheme came
into effect from December 24,1997 and shall remain operational
till March 31, 2007 for the NE region.
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Applicable to new
industrial units and existing industrial units undertaking
substantial expansion in Growth Centres, IIDC, or Industrial
Estates/Parks/EPZs approved for the NE region.
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The scheme is
also applicable to new industrial units and existing industrial
units undertaking substantial expansion in specified
industries located outside the above specified locations.
DEFINITIONS
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New Industrial
unit : An industrial unit for the setting up of which effective
steps were not taken prior to 24.12.1997.
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Existing
Industrial unit : An industrial unit for the setting up of which
effective steps were taken prior to 24.12.1997.
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Substantial
expansion : Increase in the value of fixed capital investment in
plant and machinery of and industrial unit by not less than
33.5% for the purpose of expansion of capacity/ modernisation
etc.
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Fixed Capital
Investment : Investment in plant & machinery for the purpose
of this scheme.
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Effective steps :
Means one or more of the following steps :
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That 10% or
more of the capital issued for the industrial unit has been
paid up.
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That any part
of the factory building has been constructed.
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That a firm
order has been placed for any plant & machinery required
for the industrial unit.
AMOUNT OF ADMISSIBLE SUBSIDY
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15% of the
capital investment in respect of the new units or additional
investment in respect of substantial expansion subject to a
maximum ceiling of Rs.30 Lakhs
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The cost of
capital investment includes:
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Plant and
Machinery as erected at site.
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Productive
equipment such as tools, jigs, dies & moulds, Insurance
premium etc.
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Goods
Carriers actually utilised for transport of raw material and
finished goods.
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Working Capital
will be excluded for computing the value of Plant &
Machinery.
REGISTRATION
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Eligible
industries shall be registered with concerned State Department
prior to taking effective steps for setting up new units or
undertaking substantial expansion & indicate their
assessment of the total additional fixed capital.
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Existing units
undertaking substantial expansion prior to the date of
announcement of the scheme but after 24.12.1997 will get
themselves registered by 31.12.1998.
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