CENTRAL CAPITAL INVESTMENT SUBSIDY SCHEME, 1997

CENTRAL CAPITAL INVESTMENT SUBSIDY SCHEME CENTRAL CAPITAL INVESTMENT SUBSIDY SCHEME

OPERATIONAL GUIDELINES

APPLICATION FORM FOR REGISTRATION

APPLICATION FORM FOR CLAIM OF CENTRAL CAPITAL INVESTMENT SUBSIDY SCHEME ,1997

1. Introduction :

Government of India had announced in 1997 a scheme for Central Capital Investment Subsidy for the industrial units to be set up in the North Eastern Region vide Notification No:6(1)/98-DBA-II dtd. 1-6-1998 and this was published in the Gazette of India, Extra –Ordinary, Part1, Section-1 . Eligibility and procedure for claiming subsidy and disbursement etc of the said scheme is given below. These operational guidelines have been prepared based on the scheme notified by the Government of India in case of any contradiction, the notification mentioned above will prevail.

2. Commencement and duration :

   It will come into effect from the 24^th December 1997 and remain in force upto and inclusive of 31.03.2007.

    

3. Applicability :

   The scheme is applicable to all industrial units in the Growth Centres approved for the North Eastern region and also to the new industrial units or their substantial expansion in other Growth Centres or IIDC or industrial estates/parks / export promotion zones set up by States in the North Eastern Region and new industrial units or their substantial expansion in the specified industries (as at Annexure-A) located outside these growth centres and other identified locations.

    

4. Definitions :

1. Industrial Unit means any industrial undertaking, suitable servicing unit other than that run departmentally by Government.

2. "New Industrial Unit" means an industrial unit for the setting up of which effective steps were not taken prior to 24^th December 1997.

3. "Existing Industrial Unit" means an industrial unit for the setting up of which effective steps were taken prior to 24^th December 1997.

4. "Substantial Expansion" means increase in the value of fixed capital investment in plant and machinery of an industrial unit by not less than 33 ½% for the purpose of expansion of capacity / modernisation etc.

5. "Effective steps" mean one or more of the following steps:-

• That 10% or more of the capital issued for the industrial unit has been paid up

• That any part of the factory building has been constructed.

• That a firm order has been placed for any plant and machinery required for the industrial unit.

6. "Fixed Capital Investment" means investment in plant and machinery for the purpose of this scheme.

5. Commencement and Duration :

   The scheme has come into operation with effect from the 24^th December,1997 and remain in force upto and inclusive of 31-3-2007.

    

6. Extent of admissible subsidy :

   All eligible industrial units located in the Growth Centres approved for North Eastern Region shall be given capital investment subsidy at the rate of 15% of their investment in respect of new units or additional investment in respect of substantial expansion in plant and machinery subject to a maximum ceiling of Rs.30 lakhs.

Similar benefits would also be extended to the new industrial units or their substantial expansion in other growth centres or IIDC or industrial estates / parks/ export promotion zones set up by the States in the North Eastern Region , new industrial unit or their substantial expansion in the specified industries (as at Annexure-A) located outside these growth centres and other identified location would also be eligible for similar fiscal incentives.

7. Plant & Machinery :

In calculating the value of plant and machinery the cost of industrial plant and machinery as erected at site will be taken into account which will include the cost of productive equipment, such as tools, jigs, dies and moulds, insurance premium etc.

• The amount invested in good carriers to the extent they are actually utilised for transport of raw materials and marketing of finished products will be taken into account.

• Working capital including raw materials and other consumable stores will be excluded for computing the value of plant and machinery.

8. Audit Authority :

   The Audit means the representative of the Comptroller & Auditor General of India who is entrusted with the auditing of the accounts relating to the State / District Level Committee.