G/SCM/Q2/IND/51  
 
16 December 2019 
(19-8659) Page: 1/3 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY THE UNITED  STATES REGARDING TH E  
NEW AND FULL NOTIFIC ATION OF  INDIA2 
The following communication, dated 12 December  2019, is being circulated at the request of the 
delegation of India. 
 
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North East Industrial and Investment Promotion Policy (NEIIPP), 2007  
Question 1  
Please explain which industries and sectors benefit from this program.  
Reply  
All industrial units  in the manufacturing Sector, select service sectors, Biotechnology and Power 
Generating units are  beneficiaries of the program. Some of the beneficiaries in these sectors are:  
Manufacturing sector  
i. Iron & Steel Industry;  
ii. Bamboo Processing I ndustry;  
iii. Red Oil Palm processing Industry;  
iv. Packaged Drinking Water Processing industry;  
v. Tea Processing Industry;  
vi. Cement Industry;  
vii. Biomass based briquettes plant;  
viii. Paver Blocks & Checker tiles Industry.  
Services sector  
i. Hospitals;  
ii. Hotels.  
Details of the program is available in the public domain and can be accessed from the website of the 
Department for Promotion of Industry and Internal Trade at http://dipp.gov.in . 
Question 2  
Please explain whether any of the incentives are provided to fishery infrastructure, vessel 
modernization or fishery hatcheries. If so, please provide further information on the type 
of subsidies provided and the subsidy amounts.  
                                                
1 G/SCM/Q2/IND/49 . 
2 G/SCM/N/343/IND - G/SCM/N/315/IND/Suppl.2 - G/SCM/N/ 284/IND/Suppl .4. G/SCM/Q2/IND/51  
 
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  Reply  
Under the program, no incentives have been provide d to fishery infrastructure, vessel modernization 
and fishery hatcheries.  
Question 3  
Please provide further information on whether this program has an effect and/or 
objective of increasing India's overall fishing capacity.  
Reply  
Incentives have not been p rovided for fishery related projects. Hence the program does not have 
any effect and/or objective of increasing India 's overall fishing capacity.  
Enhancement of Competitiveness in the Indian Capital Goods Sector  
Question 4  
Please explain which industries and sectors benefit from this program.  
Reply  
The scheme is for capital goods sector and its value chain. Some of the sectors primarily benefitting 
from the program are related to:  
i. Plastics processing machinery;  
ii. Metallurgy machinery including ste el plant equipment;  
iii. Mining and construction equipment;  
iv. Heavy electrical equipment including power generation, transmission and distribution 
equipment;  
v. Machine tools, dies and moulds;  
vi. Textile and jute machinery.  
Question 5  
Please provide further information on the eligibility requirements to receive the incentives 
under this program.  
Reply  
The eligibility criteria are specific to the requirements of specific components of the program. Details 
of the program, including the eligibility criteria ther eof, are available in the public domain and can 
be accessed at http://dhi.nic.in/writereaddata/notification_HE_and_MT_141114.pdf . 
Shipbuilding Subsidy/Financial Assistance Po licy 
Question 6  
Please explain whether any of the incentives are provided to fishing vessel modernization. 
If so, please provide further information on the type of subsidies provided and the subsidy 
amounts.  
Reply  
Ministry of Shipping is providing financia l assistance only for construction and delivery of vessels 
and not for modernization of vessels. No subsidy has been provided for fishing vessels in the financial 
years 2016 -17, 2017 -18 and 2018 -19. G/SCM/Q2/IND/51  
 
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  Detailed guidelines are available in the website of Minis try of Shipping and can be accessed at 
https://www.shipbuilding.nic.in/ . 
Question 7  
Please explain whether shipyard infrastructure encompasses port infrastructure. If so, 
please provide further information on whether this program has an effect and/or 
objective of increasing India's overall fishing capacity.  
Reply  
Port infrastructure may encompass shipyard infrastructure but not vice versa, which means that the 
shipyard infrastructure is a sub -set of the port infrastructure. The program is not intended to increase 
port infrastructure for fisheries sector. Thus, it has no effect on increasing India 's overall fishing 
capacity.  
Schemes of the State Government of Andhra Pradesh  
Question 8 
The notificat ion states that incentives are provided to "food processing" and that the State 
may "extend tailor made benefits to mega projects" on a case by case basis for projects 
that are deemed important to the State.  
a. Please explain if the "food processing" industry  includes fishery related 
processing?  
b. Please explain if the state government of Andhra Pradesh has extended "tailor 
made benefits" to fishery related sectors, including plant and machinery for 
processing fish.  
Reply  
a. Yes, the food processing industry includes fishery related processing.  
b. Incentives are being provided for Cold Chain Units for Fish and Shrimp Processing. Incentives 
are in the form of power subsidy, reimbursement of stamp duty towards registration and 
transfer, Grant -in-Aid up to 50% of project cost.  
Schemes of the State Government of Maharashtra  
Question 9 
The notification states that incentives are provided to the "fish processing" industry.  
Please provide further information on whether this program has an effect and/or 
objective of increasing India's overall fishing capacity.  
Reply  
Under the program, incentives are provided for 'food processing industry ' including 'fish processing 
industry '. The implementation period of the program was upto March, 2019. Increase in fish 
production is not the objective of the program and thus this program has no effect on increasing 
India's overall fishing capacity.  
 
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