G/SCM/Q2/IND/52  
 
16 December 2019 
(19-8660) Page: 1/2 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY CANADA REG ARDING  
THE NEW AND FULL NOTIFICATION OF INDI A2 
The following communication, dated 12 December 2019, is being circulated at the requ est of the 
delegation of India. 
 
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Question 1  
 
For the program, Enhancement of Competitiveness in the Indian Capital Goods, is this 
program open to all industries that produce capital goods, or only certain industries? Are 
there any restrictions as to who can receive this grant?  
Reply  
This program is open to a ll domestic industries that produce Capital Goods and their components. 
All the companies/institutions and others in the supply chain of capital goods manufacturing sector, 
can apply for grants under this program. Details of the program is available in the  public domain 
and can be accessed at https://dhi.nic.in/UserView/index?mid=1377 . 
Question 2  
 
For the program, Schemes of Government of Gujarat, what types of industrial 
undertakings qualify for this program?  
Reply  
The following type of Industrial undertakings are eligible to qualify for the scheme:  
a. Industrial undertakings which are categorized as MSME, Large, Mega and Ultra -mega;  
b. New Industrial Unit : A New Industrial Unit means a new industrial p roject set up by an 
industrial undertaking that has commenced the commercial production during the 
operative period of the scheme, provided it satisfies the following conditions:  
i. The new project should have obtained a separate Letter of Intent or a Letter of 
Approval or has filed Industrial Entrepreneur Memorandum (IEM) or Entrepreneur 
Memorandum (EM) / Udhyog Aadhar, as prescribed by the Government of India, with 
the competent aut hority.  
ii. The new project should have separately identifiable fixed capital investment. 
'Separately identifiable capital investment' means the new plant and machinery should 
be housed in separate premises/ building and shall have to maintain separate books 
of accounts. However, the new project will not lose its eligibility, if the utilities of an 
                                                
1 G/SCM/Q2/ IND/50. 
2 These questions regard the Government of India’s 2017 new and full subsidy notification 
G/SCM/N/315/IND/S uppl.1. G/SCM/Q2/IND/52  
 
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  existing project, such as for water, electricity, steam, gas, pollution control facilities 
etc. are utilized.  
c. Existing Industrial Unit : An Existing Industrial Unit m eans an industrial project that is in 
production before initiating the expansion at the same location/ premise. A new industrial 
unit set up under this policy that decides to carry out expansion of existing production line 
during the operative period of th e scheme will be termed as existing industrial unit in 
reference to the expansion.  
d. Expansion : Expansion means where an existing industrial unit increases its investment in 
gross fixed capital by at least 50% at the same location of its existing project, of  which at 
least 60% of investment is made in plant and machinery, and also increases its installed 
capacity by at least 50% of existing products for which expansion is carried out. Such 
expansion will be eligible only if the existing industrial unit has re ached the utilization of 
existing installed capacity at least to the extent of 75% in any one of the preceding three 
financial years. Further, the scheme shall be applicable to the existing industrial unit that 
undertakes expansion, only when it commences commercial production during the 
operative period of the scheme.  
 
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