G/SCM/N/284/IND/Suppl.1  
 
5 September 2017  
(17-4724) Page: 1/15 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF  
THE GATT 1994 AND AR TICLE 25 OF THE AGRE EMENT ON  
SUBSIDIES AND COUNTE RVAILING MEASURES  
INDIA 
Supplement  
The following communication, dated  31 August 2017 , is being circulated at the request of the 
Delegation of India.  
 
_______________  
 
 
(In continuation of notification No.  G/SCM/N/284/IND  dated 27 October 2016 ) 
 
In pursuance of US notification no. G/SCM/Q2/IND/20 Dated 10 October 2011, the following 
notification constitutes India 's new and full notification of information on some of the subsidy 
schemes granted or maintained at the level of State Governments in India, during the period 
indicated against each programmes.  
 
The information provided in this notificatio n is for transparency purposes in order to clarify the 
operation of programmes. In accordance with Article 25.7 of the WTO Agreement on Subsidies and 
Countervailing Measures (ASCM), this notification does not in any way prejudice the legal status, 
nature o r effects of Government assistance programmes under the ASCM and GATT 1994, 
including as to whether or not the programmes notified are specific within the meaning of the 
ASCM.  
 
  G/SCM/N/284/IND/Suppl.1  
 
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 TABLE OF CONTENTS  
 
1   STATE GOVERNMENT OF ANDHRA PRADESH  ................................ ...............................  2 
2   STATE GOVERNMENT OF BIHAR  ................................ ................................ ..................  4 
3   STATE GOVERNMENT OF JHARKHAND  ................................ ................................ .........  6 
4   STATE GOVERNMENT OF MAHARASHTRA  ................................ ................................ ..... 8 
5   STATE GOVERNMENT OF PUNJAB  ................................ ................................ ..............  10 
6   STATE GOVERNMENT OF WEST BENGAL  ................................ ................................ .... 11 
6.1   Incentive Scheme, 2004 of the State Government of West Bengal  ................................ ....11 
6.2   West Bengal State Support for Industries Scheme, 2008  ................................ ................. 13 
 
1  STATE GOVERNMENT OF ANDHRA PRADESH  
1. Title of subsidy  
 
The Industrial Investment Promotion P olicy 2005 -2010 (Andhra Pradesh Industrial Policy).  
 
2. Period of n otification  
 
Financial years 2005 -06 to 2009 -10 
 
3. Policy obje ctive and/or purpose of subsidy  
 
 Promote Andhra Pradesh as an attractive destinat ion for industrial investments and to 
market Andhra Pradesh as competitive investment dest ination for Foreign Investments;  
 
 To create enabling environment for ensuring maximum value addition to the abundant 
locally available resources;  
 
 To enhance quality of life in the State to suit to the needs of the investors ; 
 
 To attract and develop appropriate entrepreneurial leadership, management and HRD 
systems ; 
 
 Alleviate regional disparities in economic growth ; 
 
 Improving infrastructure by facilitating investment  in industrial in frastructure in private 
sector;  
 
 To encourage establishment of New Tiny and Small Scale Industries particularly in rural 
areas to achieve the twin objectives of employment generation and utilization of local 
resources ; 
 
 To encourage, attract and involve women entrepreneurs in industrial capacity building ; 
 
 Special e mphasis on quali tative competitiveness through t echnology upgradation and 
protecti ng Intellectual Property Rights;  
 
 To arrest environmental d egradation;  
 
 Encourage cluster c oncept to make the industries in the Clusters Globally Competitive ; 
 
 To develop effective regulatory mechanism for entry and operation of firms ; 
 
 Create a market driven environment with the private sector being the primary engi ne for 
growth;  G/SCM/N/284/IND/Suppl.1  
 
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 Special Empha sis for restructuring and consolidation of sick industrial units . 
 
4. Backgroun d and authority of the subsidy  
 
Background for the scheme is as mentioned in the "objectives " above. The implementing authority 
is Industries & Commerce (IP) Department of the S tate Government of Andhra Pradesh.  
 
5. Form of the s ubsidy (i. e. grant tax, loan, c oncession ) 
 
Grants  / Tax exemptions . 
 
6. To whom and how subsidy is provided and how determined  
 
 15% investment subsidy on fixed capital investment given to SSI/Tiny industrial units 
subject to a maximum of Rs.15 lakhs. An additional subsidy of 5% on fixed capital 
investment subject to a maximum of Rs.5 lakhs provided to SC/ST entrepreneurs;  
 
 Growth e nabling incentives: 25% of the tax paid during one financial year ploughed back 
to Tiny/SSI/Large & Medium Industries as a grant by the Government towards the 
payment of tax during next year;  
 
 Credit Support: 3% interest rebate on Prime Lending Rate (PLR) given on the term loan 
taken by new Tiny/SSI industrial units subject to a maximum of Rs.5.00 lakh per year for 
a period of 5 years. 5% of the project cost provided as seed capital assistance to SSI/Tiny 
industries started by SC /ST entrepreneurs as a gran t for the industries which were 
sanctioned seed capital assistance by Prime Lending Institutions under National Equity 
Fund Scheme, sub ject to a maximum of Rs.5 lakhs;  
 
 Sales tax exemption on Purchase of raw materials for export oriented units. For export 
oriented units, APSFC extended financial assistance at a concessional rate of interest. 
Export Industries were given a 30% grant for ground rent for participation in the 
international trade fairs subject  to a maximum limit of 9 sq. mts; 
 
 25% of the tax pai d during one financial year ploughed back to Tiny/SSI/Large & Medium 
Industries as a grant by the Government towards the payment of tax during next year. 
Benefit s are available for 5 years from the dat e of commencement of production;  
 
 Reimbursement of 50% of the expenditure incurred by the industrial units in getting the 
BIS, ISO 9000 / 14000 or any other national or international certification subje ct to a 
maximum of Rs.1.00 lakh;  
 
 Under Credit Guarantee Fund (Scheme) operated by SIDBI, credit is provided without any 
collateral security for industrial units up  to a limit of Rs.25 lakhs of investment. To support 
this initiative and also to improve credit flow to small scale sector, a corpus fund provided 
matching the contribution made by the consortium of in dustries in IE 's/Clusters subject to 
a maximum limit of Rs.25 Lakhs.  
 
7. Subsidy per u nit or in cases where there is not possible, the total amount or the annual 
amount budgeted for that subsidy  
 
No specific budget provided for these incentives. Electricity duty exemption given as and when the 
mega textile unit comes into production.  
 
8. Durati on of subsidy and or any other l imits attached to it, inclu ding date of inception/ 
comment  
 
The subsidy is valid until 5  years from the date of its commence ment i.e. 2009 -10. 
 G/SCM/N/284/IND/Suppl.1  
 
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 9. Statistical data permitting an assessment of th e trade effects of the subsidy  
 
It is not possible to estimate what trade effects, if any, might have resulted from this program.  
 
2  STATE GOVERNMENT OF BIHAR  
1. Title of the s ubsidy  
 
Industrial Incentive Policy, 2006 by the State Government of Bihar.  
 
2. Period covered by the n otification   
 
Financial years 2006 -07 to 2010 -11.  
 
3. Policy objective and/or purpose of subsidy  
 
With the purpose of balanced industrial growth in the state an d there was need to establish new 
industries and to revive the sick and closed units, the Industrial Policy - 2003 was reviewe d. After 
reviewing the policy, the Industrial I ncentive Policy 2006 was formulated. Overall policy objectives 
and th e purpose of t he IIP, 2006 was:  
 
a. To create favorable circumstances for establishment of industries in the State of Bihar.  
b. To provide rapid clearance procedures for establishing industries, to issue license and 
certificates and to provide a congenial atmosphere to the in vestors.  
c. To provide for rapid development of physical and social infrastructure  
d.  Provision of self -certification in order to simplify the inspection of factories.  
e. To meet the requirement of land for industries and development schemes, Land Bank be 
establi shed in the state.  
f. To develop handicraft, handloom, khadi, silk and village industries and marketing 
arrangements made for small, tiny, cottage, handloom and handicraft industries.  
g. To enhance capital investment in the industrial areas and invite the priv ate sector for 
investment and to encourage public private partnership for this purpose.  
h. To develop i nfrastructure.  
i. In order to revive sick units, to identify such units and to suggest necessary remedial 
measures and to prevent sickness by developing a dist rict level monitoring system.  
Purpose is to grant pre -production incentive of subsidy/exemption from stamp duty and 
registration fee and post production incentive of grant/exemption for preparation of project 
reports, purchase of land/shed, technical know -how, captive power generation/diesel generating 
set, quality certificate, VAT, luxury tax, electricity duty, conversion fee, market fee etc.  
 
4. Background and authority of the subsidy  
 
Background is as stated in the objectives above. The implementing authority for the scheme was 
the Department of Industries, State Government of Bihar.  
 
5. Form of the subsidy (i.e. grant, tax, loan, c oncession ) 
 
Grant/ Exemption.  
 G/SCM/N/284/IND/Suppl.1  
 
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 6. To whom and how subsidy is provided and how determined  
 
i. Stamp duty and Registration fee: Tiny, small, medium and large scale industries 
which are to be established in the industrial area / shed and outside the area of the 
Authority would get full (100%) exemption in stamp duty and registration fee in 
lease / sale / transf er. 
ii. Project - Report Incentive: Reimbursement of the cost incurred in the project report 
preparation by the industrial units at the rate of 50% subject to a maximum of 
Rs.75,000/ - be made available provided, the project report is prepared by any of the 
firms recognised by the Industry Department.  
iii. Financial assistance for t echnical -know -how: If an entrepreneur obtains t echnical 
Know -how from any recognised National research center / laboratory or institution to 
establish or to expand his industry, he will be reimbursed 30% (maximum Rs. 15.00 
lacks) of the fee paid to the institution/organization for the technical know -how. 
iv. Incentive Grant for capital investment on Captive Power Generation/Diesel 
Generating Set: 50% of the amount s pent on plant and machinery in  the 
establishment of Captive Power Generation/Diesel Generating set granted to the 
industry.  
v. VAT re -imbursement: The new u nits to avail 80% reimbursement against the 
admitted VAT amount deposited in the account of the Government, for a period of 
ten year s. The maximum s ubsidy amount is payable 300% of the capital invested. 
For zero VAT units (which means the production of items which do not attract VAT), 
and which p ay income tax would be eligible for incentive up to a maximum utilization 
of 70% of the ins talled capacity.  
vi. VAT reimbursement for units working under adverse situations: Facilities granted for 
the units w orking under adverse situation.  Such working units which have been 
working under adverse situation for years be reimbursed 25% of the deposited  VAT 
amount in the account of state government against admitted VAT amount:  
vii. Exemption from Annual Minimum Guarantee (AMG) / Mo nthly Minimum Guarantee 
(MMG). Working units at present and new units would avail exemption from AMG / 
MMG from the date of decla ration of the New Industrial Policy.  
viii.  Central Sales Tax (CST): Only 1% CST would be payable on the items   produced by 
the registered small and medium units in Bihar.  
ix. Reimbursement of the cost incurred in the project report prepared by industrial units 
at the rate of 50% subject to a maximum of Rs.75, 000.  
x. Grant of 50% (f ifty per  cent) of the amount s pent on plant and machinery in the 
establishment of Captive Power Generation/Diesel Generating set.  
xi. Incentive for quality certification: 75% of cost incurred  in obtaining certificate of 
I.S.O. standard (or equivalent) from reputed national/international level 
organizations, would be reimbursed by the State Government . 
xii. Handloom Sector:  electricity grant of 75 paise per unit in electricity tariff.  
Facilities / concession to the industrial units was to be made available only after the 
commencement of production.   
 
7. Subsidy per u nit or in cases where there is not possible, the total amount or the annual 
amount budgeted for that subsidy  
 
There is no prior budget  allocation for the IIP, 2006.  G/SCM/N/284/IND/Suppl.1  
 
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8. Durati on of subsidy and or any other l imits attached to it, includ ing date of inception/ 
comment  
 
The p olicy was available from 1 April 2006 for 5 years from the date of issue of orders.  
 
9. Statistical data permitting an  assessment of the trade effects of t he subsidy  
 
It is not possible to estimate what trade effects, if any, may result from this program.  
 
3  STATE GOVERNMENT OF JHARKHAND  
1. Title of s ubsidy  
 
Industrial Policy, 2001 of State Government of Jharkhand.  
 
2. Period covered by the n otification  
 
Financial years 2001 -02 to 2004 -05. 
 
3. Policy objective and/or purpose of subsidy  
 
After the establishment of State of Jharkhand on 15th November 2000, (the state government ) to 
achieve industrial growth, the State Government of Jharkhand announced the Industrial Policy, 
2001 to capitalize the industrial potential through planned utilization and development of natural 
and human resources and to gradually increase the employmen t opportunities. Broad objective s of 
the policy are:  
 
i. Optimal utilization of agro -climatic, mineral and human resources of the State.  
ii. To promote economic activities to ensure maximum capital investment in the State 
with the objectives of increasing employm ent opportunities, improving standard of 
living of people at large, especially the deprived and the down trodden sections of 
the society and to ensure all round development of the State.  
iii. Identification of thrust areas and thrust zones to prioritize the sec tors and 
categorization of backward regions with respect to industrialization.  
iv. To develop state of the art technology and infrastructure so as to ensure planned 
and accelerated industrial development.  
v. To ensure balanced regional d evelopment so as to prevent socio -economic 
distortions due to backwardness of any region.  
vi. To encourage and involve private sector participation in the process of planned and 
rapid industrialization of the State.  
vii. To promote export of such items, in which the State holds advant age vis -a-vis other 
states.  
viii. Revival of viable sick units.  
ix. Simplification of procedures and to ensure administrative and legal reforms so as to 
provide hassle free sensitive administration and time bound effective disposal of 
matters in a transparent manner . 
x. To take steps to protect and promote rural handicrafts so as to conserve and enrich 
cultural heritage, traditions and customs of the regions.  G/SCM/N/284/IND/Suppl.1  
 
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 xi. To provide bette r development opportunities to scheduled castes, scheduled tribes, 
handicapped, weaker sections and w omen and to ensure their participating in the 
development process.  
xii. To promote research and development, technological upgradation and qualitative 
improvement and utilization of state of art technology to improve product, 
production and productivity.  
4. Background and authority of the subsidy  
 
Background stated and objectives above. The implementing authority for the scheme is the 
Industry D epartment of the State Government of Jharkhand.  
 
5. Form of the subsidy (i.e. grant, tax, loan, c oncession ) 
 
Grants/Concessions/ Exemptions, as applicable  
6. To whom and how subsidy is provided and how determined  
The following types of incentives were given and they were admissible only once to a unit, which 
came into commercial production during the period this poli cy remain effective:  
 
1. Capital Investment Incentive: admissible to small and medium scale industries. This 
was applicable to industries 'A', 'B', & 'C' and incentives were 15%, 20% and 25%. 
Also additional 5% incentive over and above with a cap of Rs. 5 lakhs in thrust areas, 
100% export oriented units, SC/ST entrepreneurs, women entrepreneurs, 
handicapped persons and e x-servicemen shall be admissible.  
 
2. Captive Power  Generating Subsidy: admissible to new industries in various categories 
'A', 'B', and 'C' of districts at 155, 20% and 25% and also additional 5% incentive over 
and above with a cap of Rs. 0. 75 lakhs in thrust areas, 100% export oriented units, 
SC/ST entrepreneurs, women entrepreneurs, handicapped persons and e x-servicemen 
shall be admissibl e. 
 
3. Interest Subsidy: admissible to new industries  on the interest actually paid to be 
financial institution/ banks on loans taken by such new industry. This was applicable 
to industries 'A', 'B', & 'C' and incentiv es were 15%, 50% and 60%. Also t he subsidy 
is limited to a sum of Rs. 100 lakhs per annum provided the total interest subsidy 
shall not exceed 2% of the total sales amount made in the State of Jharkhand and/ or 
in course of interstate sales as supported by the certificate/ document issue d by the 
competent commercial tax authority. This subsidy wa s admissible for a period of 
5 years of all categories of industries from the date of commercial production.  
 
4. Stamp Duty and Registration: An eligible industrial unit irrespective of its location will 
be entitled to exemption from payment of 50% of Stamp Duty and registration fee 
paid for registration of documents within the State relating to purchase/ acquisition of 
land and buildings for setting up of a new unit.  
 
5. Feasibility Study -Project Report Cost Reimbursement Subsidy: the industrial u nits 
entitled for feasibility study -project report cost reimbursement subsidy @50% of the 
cost incurred in preparation of such report subject to a ceiling of Rs. 50,000/ -.  
 
6. Pollution Control Equi pment Subsidy: capital investme nt subsidy for installation of 
pollution c ontrol and monitoring equipment allowed on the certificate of the State 
Pollution Control Board about the necessity for such installation. This incentive 
admissible to new and existin g industrial units. This subsidy available was 20% of the 
cost of the pollution control and monitoring equipme nt subject to ceiling of 
Rs. 20 lakhs, in addition to the capital investment subsidy admissible to such 
industrial unit.  
 G/SCM/N/284/IND/Suppl.1  
 
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 7. Incentive for Quality  Certification: Small Scale/ Ancillary Industries were encouraged 
to seek ISI/ ISO certification. The State Government facilitate for reimbursement of 
charges for acquiring ISO -9000 (or its equivalent) certification to the extent of 75% of 
the cost subject  to a maximum of Rs. 75,000/ - in each case from the Central 
Government.  
 
8. Mega Units: special packages were  formulated for the new projects with an 
investment of more than Rs. 50 crores on case to case basis through direct 
negotiation with prospective in vestors.  
 
7. Subsidy per u nit or in cases where there is not possible, the total amount or the annual 
amount budgeted for that subsidy  
 
There was no prior budgeted amount allocated for the purpose.  
 
8. Durati on of subsidy and or any other l imits attached to it, including date of incept ion/ 
comment  
 
Subsidy under the scheme was available till 31 March 2005.  
 
9. Statistical data permitting an assessment of the  trade effects of the subsidy  
 
It is not possible to estimate what trade effects, if any, may result  from this program.  
 
4  STATE GOVERNMENT OF MAHARASHTRA  
1. Title of s ubsidy  
 
Package Incentive Scheme, 2007 of the State Government of Maharashtra .  
 
2. Period covered by the n otification  
 
Financial years 2007 -08 to 2012 -13. 
 
3. Policy obje ctive and/or purpose of subsidy  
 
The policy objectives were  to achieve higher and sustainable economic growth . Emphasis was on 
balanced regional development and employment generation through greater private and p ublic 
investment in industrial development.   
 
Amongst ot hers, the 2007 package of incentives consisted of:  
 
i. Industrial Promotion Subsidy (IPS):  The quantum of subsidy was linked  to the 
fixed capital i nvestment. Payment of IPS eve ry year is equal to 25% of any relevant 
taxes paid by the eligible unit to the Sta te or to any of its departments or agencies. 
The quantum of incentives for these units is limited to 20%, 30%, 40%, 50%, 60% 
of FCI in "B", "C", "D", "D+", No Industry District Categories respectively.  
Existing/New Micro, Small and Medium Manufacturing Enterprises, LSI (including 
Manufacturing IT/BT) Units, qualifying as Expansion/Diversification Units, also 
eligible to get the Incentives for Expansion /Diversification, equivalent to 75% of  the 
incentives admissible for new u nits. 
ii. Interest Subsidy Scheme : All new ( not for expansion) eligible Micro & Small 
Manufacturing Enterprises in textile, hosiery, knitwear and readymade garment 
sector will be eligible for interest subsidy in addition to Industrial Promotion Subsidy. 
The Interest Subsidy was payable on ly on the  interest actually paid to the banks and 
public financial i nstitutions on the term loan for acquisition of fixed capital assets. 
The amount of interest subsidy was effective rate of interest (after deducting interest 
subsidy receivable any institu tion / under  any Govt. of India scheme or 5 % p.a., 
whichever is less).  G/SCM/N/284/IND/Suppl.1  
 
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 iii. Royalty Refund:  All eligible units, new as well as units undertaking expansion in 
Vidarbha region amendment for major minerals, were eligible for refund of royalty 
paid on purchase of m inerals from mine owners within the State of Maharashtra for a 
period of five years from the date of commencement of commercial production.  
iv.  Exemption from Electricity Duty in C , D and D+ areas:  In Group A and B 
areas, 100% Export Oriented Units (EOUs),  Information Technology Manufacturing 
Units and Bio -Technology Manufacturing units were exempted from payment of 
electricity d uty for a period of 7 Years.  
v. Waiver of Stamp Duty:  BT Manufacturing and IT Manufacturing Units in Public 
Parks: 100%. BT Manufacturi ng and IT Manufacturing Units in Private Parks: 75%. 
Mega Projects - 50% for first conveyance deed only.  
vi. Power Tariff Subsidy: (2013)  Eligible New Micro, Small and Medium Enterprises 
(MSME) were eligible for power tariff subsidy.  
vii. Incentives to MSME:   
5% su bsidy on capital equipment for technology u p–gradation, subject to a 
maximum of Rs.25 lacs (ii) 75 % subsidy on the expenses incurred on quality 
certification limited to Rs. 1 Lakh .(iii) 25% subsidy on capital equipment for cleaner 
production measures , limited to Rs.5 Lakhs (iv) 75 % subsidy on the expenses 
incurred on patent registration limited to Rs. 10 Lakh for the National patents and 
Rs. 20 lakh for the International patents.  
Incentives for Credit Rating of MSMEs in all categories of areas  - 75% of t he cost of 
carrying out Credit Rating by Small Industries Development Bank of India/ 
Government accredited Credit Rating Agency, limited to Rs. 40,000.  
New MSMEs, LSI and Expansion thereof eligible for the following incenti ves in all 
categories of areas (i) 75% of cost of water  audit limited to Rs. 1.00 lakh; (ii) 75% 
of cost of energy  audit limited to Rs. 2.00 lakh;  (iii) 50% of the cost of Capital 
Equipment under the measures to conserve/recyc le water, limited to Rs. 5 lakh; 
(iv) 50% of the cost of Capit al Equipment for improving energy Efficiency , limited to 
Rs. 5 lakh.  
The Package Scheme of Incentives, introduced in 1964, was amended from time to time. The last 
amended Scheme, commonly known as the 200 1 Scheme was operative from 1 April 2001 to 
31 March  2007 with modification from time to time. Thereafter the Package Scheme of Incentives 
2007 was brought into effec t from 1 April 2007 to 31 March  2013. This scheme has since been 
subsumed under Package Incentive scheme 2013. The implementing authority for the scheme was 
Industries, Energy and Labour Department of the State Government of Maharashtra.  
 
4. Form of the subsidy (i.e. grant, tax, loan, c oncession ) 
 
Exemption/Refund.  
 
5. To whom and how subsidy  is provided and how determined  
 
Details of the scheme has been stated under the heading "Policy objectives and/or purpose of the 
subsidy " .The following categories of Eligible Industrial Units in the Private Sector, State Public 
Sector/ Joint Sector and the Co -operative Sector but not in  the Central Public Sector were eligible 
for incentives under the Package Incentive Scheme, 2007 Scheme:  
 
i. Industries listed in the First Schedule of the Industries (Development and 
Regulation) Act, 1951, as amended from time to time  
ii. Manufacturing Enterpr ises as defined in the MSMED Act, 2006.  G/SCM/N/284/IND/Suppl.1  
 
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 iii. Information Technology (IT) units registered with Directorate of Industries or MIDC 
or Development Commissioner (SEEPZ) or STPI in the State,  
iv. Poultry  - in the case of poultry, only capital expenditure on land, buil ding and 
equipment will be considered eligible for incentives.  
v.  Cold Storages and Agro Industries,  
vi. Biotechnology (BT) units as specified by Government from time to time, which are 
outside the purview of any registering authority mentioned above.  
 
6. Subsidy per u nit or in cases where there is not possible, the total amount or the annual 
amount budgeted for that subsidy  
 
Amount sanctioned for the period 2008 -2009 to 2010 -11 are as follows:  
 
     (Amount Rupees in Crores)  
Financial 
Year Expenditure  Units w hich 
availed  Subsidy per unit  
2008-09 400 346.2  0.12 
2009-10 750 10462  0.07 
2010-11 700 4733 0.15 
 
7. Durati on of subsidy and or any other l imits attached to it, includ ing date of inception/ 
comment  
 
An application for eligib ility under the 2007 Scheme  was required to be filed to the implementing 
agency by an Eligible Unit only after it has taken all the necessary Ste ps, but not later than the 
31 March  2013.  
 
8. Statistical data permitting an assessment of th e trade effects of the subsidy  
 
It is not po ssible to estimate what trade effects, if any, may result from this program.  
 
5  STATE GOVERNMENT OF PUNJAB  
1. Title of subsidy  
 
Textile Policy, 2006 of the State Government of Punjab . 
 
2. Period covered by the n otification  
 
Financial years 2006 -07 to 2013-14.  
 
3. Policy objec tive and/or purpose of subsidy  
 
The main objectives of this Policy are:  
 
a. Facilitate the textile industry of the State of Punjab to attain and sustain a preeminent 
global standard.  
b. Facilitate cluster formation to promote collective  efficiency of textile units by improving 
their business processes and support systems.  
c. To provide special benefits to t extile industry.  
The proposed Policy was to reasonable boost to textile industry in the State of Punjab and create 
employment opportunit y to large number of youths in the state.  
 G/SCM/N/284/IND/Suppl.1  
 
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 4. Backgroun d and authority of the subsidy  
 
The Textile Policy 2006 notified on 11 July 2006 is applicable from the dat e of n otification and has 
been subsumed in the New Industrial Policy 2009. The implementation authority for the scheme is 
the Department of Industry and C ommerce,  State G overnment of Punjab.  
 
5. Form of the subsidy (i.e. grant, tax, loan, c oncession ) 
 
Grants / Concessions.  
 
6. To whom and how subsidy i s provided and how determined  
 
Under the Industrial Policy 2009, the State Government provided the following to the Textile 
industry in the State of Punjab:  
 
i. Technology Up -gradation Fund Scheme: Capital ceiling w as increased under this 
scheme for small scale textile industries. State Government would facilitate 
maximum investment through this scheme for spinning, weaving and processing 
industries which are capital intensive and have high employment generation 
potential. 
ii. Cluster Development: This was for development of integrated textile park with all 
requisite f acilities at one place for the textile i ndustry and is l ikely to give a major 
boost to textile i ndustry in the State of Punjab.  
iii. It provided the followi ng concessions to the textile i ndustry in the State of Punjab  
a. Reducing Electricity Duty on mega projects to half for a period of five years. 
Electricity duty exemption was as and when the mega textile unit comes into 
production.  
b. As a general policy, waiver of the Departmental charges for mega projects in 
the textile industry.  
As per Textile Policy 2006, concessions were provided directly to mega Manufacturing Units.  
 
7. Subsidy per u nit or in cases where there is not possible, the total amount or the annual 
amount budgeted for that subsidy  
 
No budget provision for the aforesaid schemes.  
 
8. Durati on of subsidy and or any other l imits attached to it, includ ing date of inception/ 
comment  
 
Date of inception/ commencement of Textile Policy was  the date of Notification i.e. 11.07.2006. 
The Policy was subsumed in the Industrial Policy, 2009.  
 
9. Statistical data permitting an assessment of th e trade effects of the subsidy  
 
It is not possible to estimate what trade effects, if any, may result from this programme  
 
6  STATE GOVERNMENT OF WEST BENGAL  
6.1  Incentive Scheme, 2004 of the State Government of West Bengal  
1. Title of subsidy  
 
Incentive Scheme, 2004 of the State Government of West Bengal.  
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 2. Period covered by the n otification  
 
Financial years 2004-05 to 2007 -08. 
 
3. Policy obje ctive and/or purpose of subsidy  
 
Policy objective was to extend certain support for large and medium industrial projects in the State 
of West Bengal and to give additional financial support for promotion of larger and med ium scale 
industries in the backward regions of the state.  
 
4. Backgroun d and authority of the subsidy  
 
The West Bengal Incentive Scheme 2004 came into operation in supersession of the West Bengal 
Incentive  Scheme 2000. The implementing a uthority was the Government of West Bengal 
Industrial Development Corporation. Details of the scheme are available at: 
http://www.wbidc.com/about_wb/incentive.htm . 
 
5. Form of the subsidy (i.e. gr ant, tax, loan, c oncession ) 
 
Exemption/Refund.  
 
6. To whom and h ow subsidy i s provided and h ow determined  
 
The 2004 Scheme was generally applicable to all large/small scale projects and tourism units in 
large/Small Scale sector, to be set up and also expansion project of existing units on or after 
1 April 2004. The units might be in the private sector, co -opera tive sector, and joint sector as also 
companies/undertakings owned or managed by the State Government.  
 
i. Interest Subsidy : Approved project entitled to i nterest subsidy to the extent of 25% 
of the annual interest liability on  the term loan borrowed from a c ommercial 
bank/financial i nstitution, for implementation of the approved project, subject to a 
limit of Rs. 100 lakhs per year depending on the location of the unit as follows :  
- Group 'B' area : 5 years  
- Group 'C' area : 7 years  
(Note: Group 'A' area covered Kolkata Municipal Corporations Area)  
ii. Waiver of Electricity Duty: An eligible unit for its approved project was entitled to 
waiver of electricity duty on the electricity consumed for its production/operation 
activity for a period of 5 years fr om the date of commercial production/operation.  
iii. State C apital Investment Subsidy: An eligible unit located in a group 'B' area and set 
up in the State entitled to the State Capital Investment Subsidy @ 7.5% of the Fixed 
Capital Investment subject to a limi t of Rs.150 lakhs and unit located in area 'C' will 
be entitle to 10% of the Fixed capital investment subject to a limit of Rs.250 lakhs.  
iv. Additional Incentive on G eneration of Employment: The units entitled to 
reimbursement of the undernoted expenditure in curred by it if at least 50% of the 
employees in the unit are recruited from amongst the persons registered with the 
Employment Exchanges of the State and Employment Exchange registration cards 
(original or attested photocopies) are produced at the time of  claiming this incentive.  
v. Refund of Stamp Duty & Registration Fee: An eligible unit irrespective of its location 
entitled to refund of 50% of stamp duty and registration fee paid by it for the 
purpose of registration of documents within the State relating to 
purchase/acquisition of land and buildings.  G/SCM/N/284/IND/Suppl.1  
 
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 vi. Subsidy for conversion for use of piped gas: Eligible to subsidy equal to 75% of the 
investment for necessary conversion of furnace etc., subject to a limit of 
Rs. 10.00  lakhs. 
vii. Subsidy for Quality Improvement in the Small Scale Sector (not however be 
applic able to IT units): An eligible i ndustrial uni t in the Small Scale Sector was  
entitled for reimbursement of 50% of the expenditu re, subject to a maximum of 
Rs. 5.00 lakhs (Rupees five lakhs) incurred for moder nization of unit, installation of 
the Pollution Control Device and for obtaining ISI Certification/ISO 9000/ISO 14001 
from approved Institutions/Research Laboratories with or without expansion project.  
viii.  Additional Incentive for certain sectors: New units i n the area of Information 
Technology (Software, Hardware), Electronics, Agro and Food Processing Industry, 
HPL Downstream Projects, Newspaper Industry, Bio -Technology, Jute Diversification, 
Agricultural implements, Tourism & Hosiery located in Group 'A' area were eligible to 
the same incentives as were normally admissible to a new unit located in Group 'B' 
area.  
ix.  Incentives for leather units  both in the tanning and manufacturing sectors on 
relocation accompanied with modernization. The ince ntives under the  2004 scheme 
were available to all large/small scale projects and tourism units in large/Small Scale 
sector, to be set up and also expansion project of existin g units on or after 
1 April 2004, the units may be in the private sector, co -operative sector, an d joint 
sector as also companies/undertakings owned or managed by the State Government, 
depending on the type of incentive stated above. Further, the scheme was not 
applicable to the negative list of industries given under the scheme in annexure –I of 
the scheme (consisting of a limited number of industries).  
For the purpose of determination of types and quantum of incentive available under this Scheme 
for the approved projects, the State was classified in the following groups based on their location:  
 
Group A —  Kolkata Municipal Corporation.  
Group B —  North 24 Parganas, South 24 Parganas (excluding the area under the 
jurisdiction of the Kolkata Municipal Corporation), Howrah, Hooghly, 
Bardhaman, Nadia and Purba Medinipur districts.  
Group C —  Murshida bad, Brigham, Purulia, Bankura, Malda , Coochbe har, Uttar Dinajpur, 
Dakshin Dinajpur, Jalpaiguri, Darjeeling and Paschim Medinipur districts.  
 
7. Subsidy per u nit or in cases where the same is not possible, the total amount or the annual 
amount budgeted for  that subsidy  
 
Quantum of subsidy varied depending on the type of the scheme and the location of the project. 
Further, there was no separate budgetary allocation available.  
 
8. Durati on of subsidy and or any other l imits attached to it, includi ng date of i nception/ 
comment  
 
Scheme was available from 2004 -05 to 2007 -08. 
 
9. Statistical data permitting an assessment of th e trade effects of the subsidy  
 
It is not possible to estimate what trade effects, if any, may result from this program.  
 
6.2  West  Bengal State Support for Industries Scheme, 2008  
1. Title of subsidy  
 
West Bengal State Support for Industries Scheme, 2008  
 G/SCM/N/284/IND/Suppl.1  
 
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 2. Period covered by the n otification  
 
Financial year from 2008 -09 to 2012 -13. 
  
3. Policy obje ctive and/or purpose of subsidy  
 
Policy objective was to extend certain support for large and medium industrial projects in the State 
of West Bengal and to give additional financial support for promotion of large and medium scale 
industries in the backward regions of the state. Various in centive s under the scheme are:  
 
Interest subsidy:  An eligible unit with investment under scale -1, for its approved project entitled 
to Interest Subsidy to the extent of 25% of the annual interest liability on the term loan borrowed 
from an FI for implementation o f the approved project, subject to a limit of Rs. 150 lakh per year, 
depending on the location.  
 
Waiver of Electricity Duty:  An eligible unit in Group 'B' & 'C' areas with investment under scale 1 
for the approved project was entitled to waiver of electricity duty on the electricity consumed; 
provided, no such benefit was granted to any unit set up in the area under Group -'A' except to the 
extent provided in this Scheme. An eligible unit in Gr. 'D' area would  avail 100% waiver from 
year-1 to Year -5 and thereafter, it would be 75% waiver from year -6 to Year -10. 
 
Industrial Promotion Assistance:  Certain units eligible under the scheme were provided 
Industrial Promotion assistance in the form of value added tax paid by unit for previous year.  
Additional Incentives provided to certain sectors, incentives for leather units both in the 
tanning and manufacturing sectors on relocation accompanied with modernization. Details of the 
scheme is  http://bombayhighcourt.nic.in/libweb/acts/1958.96.pdf available at:  
http://www.wbidc.com/images/pdf/incentive_scheme.pdf    
 
4. Background  and authority of the subsidy  
 
The State G overnment had from time to time formulated Sta te Industries Incentive S cheme for 
attracting investments in this state. Accordingly, the West Bengal Incentive Schemes 1993, 1999, 
2000 and 2004 had been frame d and was in force for a definite time period. Present incentive 
scheme 2008 was valid till 31.03.2013. The Directorate of Industries, West Bengal supervisions 
the scheme. The implementing a uthority is the Government of West Bengal Industrial 
Development C orporation. D isbursement of the entitlement was done by WBIDC Ltd. (which is a 
Corporation under the administrative control of C &  I Department), after the unit c ommences 
commercial production.  
 
5. Form of the s ubsidy (i.e. gra nt, tax, loan, c oncession ) 
 
Exemption/Refund . 
 
6. To whom and h ow subsidy is provided and h ow determined  
 
This scheme was available to all large and medium scale units to be set up in the state of West 
Bengal upon commencement of this scheme and also 'expansion of existing units '. All units that 
were not registered with the DI under any other incentive scheme of this government. Also the 
scheme was not applicable to those units that were registered for and had been sanctioned 
incentives under any previous scheme i.e. West Bengal Incen tive Scheme 2004.  
 
7. Subsidy per u nit or in cases where there is not possible, the total amount or the annual 
amount budgeted for that subsidy  
 
Details as stated under the heading "Policy objectives and/or purpose of subsidy ". There is no 
specific budget for the scheme.  
 
8. Durati on of subsidy and or any other l imits attached to it, inclu ding date of inception/ 
comment  
 
Entitlement was for the period 2008-09 to 2012 -13. G/SCM/N/284/IND/Suppl.1  
 
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9. Statistical data permitting an assessment of t he trade effects of the subsidy  
 
It is not possible to estimate what trade effects, if any, may result from this program.  
 
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