G/SCM/N/343/IND/Suppl.1 
G/SCM/N/315/IND/Suppl.3  
G/SCM/N/284/IND/Suppl.5 
G/SCM/N/253/IND/Suppl.4  
 
18 October 2019  
(19-6804) Page: 1/43 
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  ARTICLE 25 OF THE A GREEMENT  
ON SUBSIDIES AND COU NTERVAILING MEASURES  
INDIA 
Supplement  
The following communication, dated 3 October 2019, is being circulated at the request of the 
delegation of India.1 
 
_______________  
 
The following notification constitutes India 's supplementary notification to its new and full 
notification. This contains information on India 's industrial assistance p rogrammes at the level of 
Central Government or State Governments and is for the period April 2017 to March 2018 and April 
2018 to March, 2019. Notification for some of the schemes are for the period April 2017 to March 
2019, supplementing India 's earlier notification covering the period April 2017 to March 2018.  
The present communication also includes information on industrial assistance schemes for previous 
financial years for some of the State Governments, supplementing India 's earlier notifications.  
The information provided in this notification 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 an y way, prejudice the legal status, 
nature or 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.  
Note:  
It has not been possible to est imate the trade effects, if any, that may result from each of the 
programmes.  
  
                                                
1 WTO documents: G/SCM/N/343/IND - G/SCM/N/3 15/IND/Suppl.2 - G/SCM/N/284/IND/Suppl.4  – 
G/SCM/N/253/IND/Suppl.3.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  TABLE OF CONTENTS  
A SCHEMES AT THE CENTR AL GOVERNMENT LEVEL  ................................ ....................  3 
1   INDUSTRIAL DEVEL OPMENT SCHEME, 2017 FOR STATES OF  
JAMMU & KASHMIR, HIM ACHAL PRADESH AND UT TARAKHAND  ................................ ....... 3 
2   INTEGRATED DEVELOPM ENT OF LEATHER SECTO R SCHEME  ................................ ........  4 
3   NORTH EAST INDUS TRIAL AND INVESTMENT  PROMOTION  
POLICY (NEIIPP), 200 7 ................................ ................................ ................................ ... 5 
4   FREIGHT SUBSIDY SCHEME  ................................ ................................ .........................  6 
5   NORTH EAST INDUS TRIAL DEVELOPMENT SC HEME  ................................ .....................  7 
6   FASTER ADOPTION AND  MANUFACTURING OF HY BRID AND  
ELECTRIC VEHICLES (F AME) SCHEME ................................ ................................ ...............  8 
7   ENHANCEMENT OF C OMPETITIVENESS IN TH E INDIAN CAPITAL  
GOODS SECTOR  ................................ ................................ ................................ ................  9 
8   SHIPBU ILDING SUBSIDY/FINAN CIAL ASSISTANCE POLI CY ................................ ..... 10 
9   AMENDED TECHNOLO GY UPGRADATION FUND SCHEME (ATUFS)  ..............................  11 
B. SCHEMES AT THE STATE  GOVERNMENT LEVEL  ................................ .......................  12 
1   SCHEMES OF THE S TATE GOVERNMENT OF A NDHRA PRADESH ................................ .. 12 
2   SCHEMES OF THE S TATE GOVERNMENT OF  BIHAR  ................................ .....................  13 
3   SCHEMES OF THE S TATE GOVERNMENT OF C HHATTISGARH  ................................ ...... 15 
4   SCHEMES OF THE STAT E GOVERNMENT OF GUJA RAT................................ .................  16 
4.1   Scheme for Incentive to Industries  ................................ ................................ ............... 16 
4.2   Scheme for assistance for Plastic Industries  ................................ ................................ ...17 
4.3   Gujarat Aerospace & Defence incentive scheme for Aerospace &  
Defence Enterprises  ................................ ................................ ................................ ........... 18 
4.4   Scheme for assistance for Labour  Intensive Industries  ................................ .................... 19 
4.5   Scheme of assistance to Mega/Innovative Projects  ................................ ......................... 20 
4.6   Schemes under Gujarat Textile Policy – 2012 ................................ ................................ .22 
5   SCHEMES OF THE STAT E GOVERNMENT OF HARY ANA ................................ ................  23 
6   SCHEMES OF THE S TATE GOVERNMENT OF H IMACHAL PRADESH  ..............................  24 
7   SCHEMES OF STATE  GOVERNMENT OF KERAL A ................................ ..........................  27 
7.1   Entrepreneur Support Scheme (ESS), 2012  ................................ ................................ ...27 
7.2   Scheme for Interest Subvention to Nano Household Enterprises  ................................ .......29 
8   SCHEMES OF STATE  GOVERNMENT OF KARNA TAKA  ................................ ...................  30 
9   SCHEMES OF STATE  GOVERNMENT OF MADHY A PRADESH  ................................ ........  32 
10   SCHEMES OF THE STATE GOVERNMENT OF MAHARASHTRA  ................................ ..... 35 
11   SCHEMES OF STAT E GOVERNMENT OF ODIS HA ................................ .......................  37 
12   SCHEMES OF THE STATE GOVERNMENT OF PUNJAB  ................................ ................  38 
13   SCHEMES OF THE STATE GOVERNMENT OF TRIPURA  ................................ ...............  40 
14   SCHEMES OF THE STATE GOVERNMENT OF UTTARAKHAND  ................................ ..... 41 
  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  A SCHEMES AT THE CENTR AL GOVERNMENT LEVEL  
1  INDUSTRIAL DEVELOPME NT SCHEME, 2017 FOR STATES OF JAMMU & KA SHMIR, 
HIMACHAL PRADESH AND  UTTARAKHAND  
1. Title of Subsidy  
a) Industrial Development Schem e, 2017 (IDS) (for Jammu and Kashmir) . 
b) Industrial Development Scheme, 2017 (IDS) (for Himachal Pradesh and Uttarakhand) . 
2. Period covered by the notification  
2018-19 
3. Policy objective and/or purpose of the subsidy  
To provide package of incentives to boost industrialization in three special category states 
mentioned above.  
4. Background and authority for the subsidy  
Scheme for Jammu & Kashmir  
To promote industrialization in Jammu & Kashmir, Department for Promotion of Industry and Internal 
Trade ( DPIIT), Ministry of Commerce and Industry in the Government of India had introduced 
various concessions for the State of Jammu & Kashmir namely, J&K package -I and J&K package -II 
from 14 June, 2002 to till 14 June, 2017. DPIIT has extended the benefits to t he State of J&K w.e.f. 
15 June 2017 up to  31 March 2020. Incentives include Central Capital Investment Incentive for 
access to credit, Central Interest Incentive, Central Comprehensive Insurance Incentive, Income 
Tax Reimbursement, GST reimbursement, Emplo yment Incentive and Transport incentive. Extension 
of scheme beyond 31 March 2020 will be considered after evaluation of this scheme . 
Scheme for Himachal Pradesh and Uttarakhand  
Special Package (package -I and package -II) for the States of Himachal Pradesh and Uttarakhand 
were introduced from 7 January 2003 to 31 March, 2017. However, the grandfathering of schemes 
shall continue till 31 March 2022. Under the scheme, Central Capital Investment Subsidy was 
made available to the eligible industrial units in the  State. DPIIT has introduced Industrial 
Development Scheme (IDS) for Himachal Pradesh and Uttarakhand which provides two  incentives 
namely, (i) Central Capital Investment for access to credit (ii) Central Comprehensive Insurance 
incentive w.e.f. 01 April 2 017 to 31 March 2022.The scheme has been formulated and administered 
by the Department for Promotion of Industry and Internal Trade in the Ministry of Commerce and 
Industry, Government of India.  
5. Form of the subsidy  
Exemption and grant/reimbursement of clai med amount.  
6. To whom and how the subsidy is provided and how determined  
All new units as well as existing units which go in for substantial expansion, units otherwise specified 
and which commence commercial production within 5 years from the date of notific ation of the 
respective scheme, will be eligible for incentives for a period of 5 years from the date of 
commencement of commercial production. Incentive are in form of exemption from income tax, 
provision of interest subsidy on working capital loan, reimb ursement of insurance premium, capital 
investment subsidy, etc.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Release of funds for 2018 -19 are  indicated below:  
Financial Year  2018 -19 
Expenditure (In Rupees million ) 1,449.60  
8. Duration of the subsidy and/or any other time limits attached to it, including date of inception/ 
commencement  
a) For the State of Jammu and Kashmir:  
Package -I: For 10 years from 14 June 2002 to 14 June 2012 ; 
Package -II: For 5 years from 15 June 2012 to 14 June 2017; and  
IDS: For 3 years from 15 June 2017 to 31 March 2020.  
b) For the States of Himachal Pradesh and Uttarakhand : 
Package -I: For 10 years from 7 January 2003 to 6 January 2013;  
Package -II: For 5 years f rom 7 March  2013 to 31 March 2017; and  
IDS: For 5 years from 15 June 2017 to 31 March 2022.  
9. Statistical data permitting an assessment of the trade effect of the subsidy  
It has not been possible to estimate the trade effects, if any, that may result from this subsidy.  
2   INTEGRATED DEVELOPM ENT OF LEATHER SECTO R SCHEME  
1. Title of subsidy  
Integrated Development of Leather Sector (IDLS) Scheme . 
2. Period covered by the notification  
2018-19. 
3. Policy objective and/or purpose of the subsidy  
The objective of the IDLS scheme is to enable tanneries, footwear, footwear components, leather 
goods and accessories, leather garments, harness and saddlery manufacturing units to upgrade 
themselves leading to right sizing of capacity, cost cutting, design  and development including 
simultaneously encouraging entrepreneurs to diversify and set up new units in specified areas.  
4. Background and authority for the subsidy  
The Scheme was initiated during the 10th Plan Period (2002 -2007) and made applicable with eff ect 
from 3 November 2005. The scheme continued in 11th Plan since November 2008 and 12th Plan 
since January 2014. The scheme has been continued for the financial years 2017 -20. Given the 
significance of this industry to the overall health of the Indian eco nomy, its employment potential 
and historical backlog of technology upgradation, it was essential for the leather industry to have 
access to timely and adequate capital in order to upgrade its technology level, modernise and 
increase capacity/production. I DLS programme is administered with aid of Project Implementation 
Units (PIUs) FDDI and CLRI by the Department for Promotion of Industry and Internal Trade (DPIIT) 
in the Ministry of Commerce and Industry. More details of scheme can be seen under the headin g 
"programmes and schemes" at http://dipp.nic.in/ . 
5. Form of the subsidy  
Financial assistance is provided in the form of grant. G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  6. To whom and how the subsidy is provided and how determined  
Financial assistance under the Sche me is provided as an investment grant to the extent of 30% of 
the cost of plant and machinery for Micro, Small and Medium Enterprises (MSMEs) and 20% of cost 
of plant and machinery for other units for technology upgradation /modernisation and/or expansion 
and setting up a new unit to a ceiling of Rs. 30 million  for each product line. Investment  grant is also 
available to units investing their own resources. All existing units in the leather and leather products 
industry including tanneries, leather goods, s addlery, leather footwear and footwear component 
sector having cash profits for 2 years, undertaking viable and bankable programmes on technology 
upgradation on or after January 2016, are eligible for assistance under the scheme, subject to a 
ceiling of Rs .30 million  for each product line. The expansion projects in manufacturing units or setting 
up of new manufacturing units should lead to new jobs as per details given under the scheme.  
7. Subsidy per unit, or in cases where this is not possible, the total amo unt or the annual amount 
budgeted for that subsidy  
Release of funds for 2018 -19 are indicated below:  
Financial Year  2018-19 
Expenditure (in Rupees million ) 110.1  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
The scheme was initiated in 2005 and is continuing with revised guidelines. Its current period of 
operation is the financial years 2017 -2020.  
9. Statistical date permitting an assessment of the trade effect of the subsidy  
It has not bee n possible to estimate trade effects, if any, that may result from this subsidy.  
3  NORTH EAST INDUSTRIA L AND INVESTMENT PRO MOTION POLICY (NEIIP P), 2007  
1. Title of Policy containing the Scheme  
North East Industrial and Investment Promotion Policy (NEIIPP), 2007. 
2. Period covered by the notification  
2018-19. 
3. Policy objective and/or purpose of the subsidy  
To provide a package of fiscal incentives and other concessions for the disadvantaged region  i.e., the 
North East Region of India . 
4. Background and authority for  the subsidy  
The North East Industrial Policy (NEIP), 1997, which covered the States of Arunachal Pradesh, Assam, 
Manipur, Meghalaya, Mizoram, Nagaland and Tripura was replaced by the North East Industrial and 
Investment Promotion Policy (NEIIPP) 2007, eff ective from 1st April 2007 wherein the state of Sikkim 
was also included. This policy was valid up to 31 March 2017 but the grandfathering of the scheme 
shall continue till 31 March 2027. The administering authority for scheme is Department for Promotion 
of Industry and Internal Trade, Ministry of Commerce and Industry. Further information on the Scheme 
is also available at:  http://dipp.nic.in/policies -rules-and-acts/policies/north -east-industrial -
investment -promotion -policy -neiipp -2007. G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  5. Form of the subsidy:  
Exemption and Grant/reimbursement of the claimed amount.  
6. To whom and how the subsidy is provided and how determined  
All new units as well as existing units which go in for substantial expansion, unless otherwise specified 
and which commence commercial production within stipulated time period of the scheme will be eligible 
for incentives for a period of ten ye ars from the date of commencement of commercial production. 
Incentives are in the form of Exemption of Excise Duty and income tax, provision of interest subsidy 
on working capital loan, reimbursement of insurance premium, capital investment subsidy, etc.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Release of fund for 2018 -19 is indicated below : 
Financial Year  2018-19 
Expenditure (in Rupees million)  5,280.00  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
10 years from the date of its coming into force in 2007 . 
9. Statistical date permitting an assessment of the trade effect of the subsidy  
It has not been possible to estimate the t rade effects, if any, that may result from this subsidy.  
4   FREIGHT SUBSIDY SCH EME 
1. Title of subsidy  
Freight Subsidy Scheme . 
2. Period covered by the notification  
2018-19. 
3. Policy objective and/or purpose of the subsidy  
To facilitate the process of industrialization in hilly, remote and inaccessible areas.  
4. Background and authority for the subsidy  
FSS was introduced in 2013 and it has replaced Transport Subsidy Scheme, 1971. The incentives under 
the scheme are available for a ll 8 States of North East, Himachal Pradesh, Uttarakhand, J&K, Darjeeling 
District of West Bengal, Andaman & Nicobar Administration and Lakshadweep Administration. The 
Freight Subsidy Scheme (FSS), 2013 has been discontinued, with effect from 22 November 2 016. 
However, industrial units registered under the scheme prior to the date of issue of DIPP's notification 
dated 22 November 2016 will be eligible for the benefits of the scheme up  to 21 November 2021.The 
administering authority for scheme is Department for Promotion of Industry and Internal Trade, 
Ministry of Commerce and Industry.  
5. Form of the subsidy  
Exemption and Grant/reimbursement of the claimed amount.  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  6. To whom and how the subsidy is provided and how determined  
Subsidy on the transport cost for trans portation of raw material and finished goods to and from location 
of the unit and the designated  rail-head. For North East states, Jammu & Kashmir and Union Territories, 
the subsidy is 90%. For States of Himachal Pradesh, Uttarakhand and Darjeeling Distric ts of West 
Bengal, subsidy is 75% of transport cost. However, for movement of goods within North East States 
of India, subsidy is 50% on finished goods and 90% on raw material. No subsidy is available for intra -
state movement of goods.  
7. Subsidy per unit, or  in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Release of fund for 2018 -19 is indicated below:  
Financial Year  2018 -19 
Expenditure (In Rupees million)  9,322.50  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
5 years from the date of commencement of commercial production by the unit.  
9. Statistical date permitting an assessment of the trade effect of the subsidy  
It is not possible to estima te the trade effects, if any, that may result from this subsidy.  
5   NORTH EAST INDUSTRI AL DEVELOPMENT SCHEM E 
1. Title of subsidy  
North East Industrial Development Scheme -2017.  
2. Period covered by the notification  
2018-19. 
3. Policy objective and/or purpose of the subsidy  
To promote industrialization in North Eastern States of India and to boost employment and income 
generation.  
4. Background and authority for the subsidy  
A new Scheme namely North East Industrial Development Scheme (NEIDS), 2017 has been notified 
on 12 .04.2018 which has come into force w.e.f. 01.04.2017  for a period of five years. The scheme will 
cover manufacturing and service sector. It will give encouragement to MSME in manufacturing, 
services. Information technology will be leverage to process and a pprove proposals and release of 
payment. Further information on the Scheme is also available at: 
https://ncog.gov.in/NEIDS_SCHEME_NOTIFICATION.pdf . 
5. Form of the subsidy  
Exemption and Grant/reimbursement of the claimed amount.  
6. To whom and how the subsidy is provided and how determined  
All new units which commence commercial production within stipulated time period of the scheme will 
be eligible for incentives for a period of five years from the date commencement of commercial 
production. Incentives are in the form of Central Capital Investment Incentive for Access to Credit G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  (CCIIAC), Central Interest Incentive (CII), Central Comprehensive Insurance Incentive (CCII), Income 
Tax (IT), Reim bursement, Goods and Services Tax (GST) Reimbursement, Employment Incentive (EI) 
and Transport Incentive (TI).  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
No amount has been rele ased so far.  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
5 years from the date of its coming into force in 2017.  
9. Statistical date permitting an assessment of the trade effect of the subsidy  
It is not possible to estimate the trade effects, if any, that may result from this subsidy.  
6   FASTER ADOPTION AND  MANUFACTURING OF HY BRID AND ELECTRIC VE HICLES  
(FAME) SCHEME  
1. Title of subsidy  
Scheme for Faster Adoption and Manufacturing of (Hybrid) &  Electr ic Vehicles in India -(FAME India 
scheme ). 
2. Period covered by the notification  
2018-19. 
3. Policy objective and/or purpose of the subsidy  
The scheme is intended to support the hybrid/electric vehicles market development and its 
manufacturing eco-system to achieve the sustenance at the end of the stipulated period. The scheme 
is operated in select high density urban centres based on high level of environmental pollution and 
fossil fuel usage in road transport.  
4. Background and authority for the s ubsidy  
Scheme has been issued in pursuance of National Mission on Electric Mobility -2011 and National 
Mobility Mission Plan -2020. The Administering authority for the scheme is Department of Heavy 
Industry, Government of India.  
5. Form of the subsidy  
Subsidy i s provided in the form of Grant.  
6. To whom and how the subsidy is provided and how determined  
Subsidy is provided to buyers in the form of upfront reduced market price of vehicle to enable wider 
adoption with emphasis on providing affordable and environmenta lly friendly public and private 
transportation/vehicular mobility options for the masses.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
The scheme has 4 focus areas i.e. Technology  Development, Demand Creation, Pilot Project and 
Charging Infrastructure.  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  Release of funds for 2018 -19 are indicated below:  
Financial Year  2018 -19 
Expenditure (in Rupees million)  1,450 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
Duration of scheme is from 1 April 2015 to 31 March 2019.  
9. Statistical date permitting an assessment of the trade effect of the subsidy  
It has not been possible to estimate what trade effects, if any, may result from this subsidy.  
7   ENHANCEMENT OF COMP ETITIVENESS IN THE I NDIAN CAPITAL GOODS  SECTOR  
1. Title of subsidy  
Enhancement of competitiveness in the Indian Capital Goods Sector scheme . 
2. Period covered by the notification  
2018-19. 
3. Policy objective and/or purpose of the subsidy  
To make the Indian Capital Goods Sector globally competitive by addressing the  issues  of techno -
logical depth creation besides creating common industrial facility centres.  
4. Background and authority for the subsidy  
For modernization of the capital goods sector by adopting advanced technology in manufacturing. The 
administering authority for the scheme is Department of Heavy Industry in Government of India. Detail 
of the scheme can be accessed at http://www.dhi.nic.in . 
5. Form of the subsidy  
Financial assistance is in the form of Grant in aid.  
6. To whom and how the subsidy is provided and how determined  
The Grant in aid is provided to new and existing Institutions for setting up and str engthening the 
technology development and common Engineering/ services infrastructure.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Under the scheme for Enhancement of competitive ness in the Indian Capital Goods Sector scheme, 
funds released for 2018 -19 are indicated below:  
Financial Year  2018 -19 
Expenditure (in Rupees million)  1,104.5  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement.  
The scheme is in operation since November, 2014 and is continuing.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  9. Statistical date permitting an assessment of the trade effect of the subsidy  
It has not been possible to estimate what trade effects, if any, may result from this su bsidy.  
8   SHIPBUILDING SUBSID Y/FINANCIAL ASSISTANCE  POLICY  
1. Title of Subsidy  
Shipbuilding Subsidy/Financial Assistance Policy . 
2. Period of Notification  
2018-19. 
3. Policy Objective and/or Purpose of the Subsidy  
To encourage domestic shipbuilding and provide level playing field to Indian shipbuilding sector.  
4. Background and authority for the Subsidy  
Government of India has been operating this policy for Central Public Sector Shipyards since 1971 
with some modifications from time to time. Subsequently, the polic y has been extended to all the 
shipyards i.e. both public and private sector shipyards. The policy covers shipbuilding industry. The 
Union Cabinet approved the Shipbuilding Financial Assistance Policy for Indian Shipyards on 9 
December 2015.Administrative Authority for policy is Ministry of Shipping in Government of India.  
5. Form of the Subsidy  
Subsidy is in the form of Grant.  
6. To whom and how the Subsidy is provided  
Financial assistance is granted to shipyards equal to 20% of the 'Contract Price' or the 'Fair  Price' or 
'Actual Receipt', whichever is lowest, for each vessel built by them for a period of at least 10 years 
commencing financial year 2016 -17, after delivery of vessels. This rate of 20% will be reduced by 
3% every three years starting from 2019.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
The Government of India has introduced a Rs. 40,000 million financial assistance to shipyards for 
10 years for contracts secured between 1 April 2016 and 31 March 2026.  
Release of funds for 2018 -19 are indicated below : 
Financial Year  2018 -19 
Expenditure (in Rupees million)  290.2 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
The policy is applicable from financial year 2016 -17 to 2025 -2026 (plus three years or more for 
spill-over cases).  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to estimate wha t trade effects, if any, may result from this subsidy.  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  9  AMENDED TECHNOLOGY U PGRADATION FUND SCHE ME (ATUFS)  
1. Title of Subsidy  
Amended Technology Upgradation Fund Scheme (ATUFS)  
2. Period covered by the Notification  
2018-19. 
3. Policy objective and/or purpose of subsidy  
The objective of the Technology Up -Gradation Fund (TUFS) Scheme is to catalyze capital investments 
for technology upgradation and modernization of the textiles industry by providing capital 
investment subsidy for investment in upgradation of machin ery. It is a credit linked scheme 
implemented through the notified lending agencies by reimbursement of subsidy claims of eligible 
investments.  
4. Background and authority of the subsidy  
TUFS was introduced in 1999 by way of 5% interest reimbursement. The sch eme was initially 
approved from April, 1999 to March 31, 2004. Subsequently, the scheme was further restructured 
as Restructured TUF Scheme ( R-TUFS) w.e.f . 28.04.2011 to 31.03.2012. This was further 
extended /rolled over up to  31.03.2013. It has been further revised for the period 01.04.2013 and 
31.03.2017 and renamed as Revised Restructured Technology Upgradation Fund Scheme (RR -
TUFS). In place of RR -TUFS, amended TUFS has been launched from 13.01.2016. The implementing 
author ity of the scheme is the Ministry of Textile, Government of India. Further details of the scheme 
are available at: http://www.txcindia.gov.in/tufs_home/tufs_home.htm . 
5. Form of the Subsidy (i .e. grant, tax, loan, Concessions)  
The ATUFS support Capital Investment subsidy whereby every eligible individual unit is entitled for 
reimbursement of capital investment subsidy at prescribed rates.  
6. To whom and how subsidy is provided and how determined  
The benefits under ATUFS are available to the eligible textile manufacturing units based on physical 
verification of installed machines by Joint Inspection Team.  
7. Duration of the subsidy and/or any other time limits attached to it, including date of 
inceptio n/commencement  
The ATUFS has been launched on 13 January 2016 and will be valid till 2021 -2022.  
8. Subsidy per Unit or in cases where there is not possible, the total amount or the annual 
amount budgeted for that subsidy  
Release of funds for 2018 -19 are indic ated below : 
Financial Year  2018 -19 
Expenditure (in Rupees million)  6,221.9  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to estimate what trade effects, if any, may result from this subsidy.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  B. SCHEMES AT THE ST ATE GOVERNMENT LEVEL  
1  SCHEMES OF THE STATE  GOVERNMENT OF ANDHR A PRADESH  
1. Title of Policy containing the subsidy scheme  
Schemes under Industrial Development Policy, 2015 -20. 
2. Period of notification  
2018-19. 
3. Policy objective and/or purpose of subsidy  
The overall policy objectives are : 
a. To ensure sustainable & inclusive industrial growth.  
b. To be among the top three states in terms of industrial investments, by 2022.  
c. To be most preferred logistic hub and India's gateway to East and Southeast Asia by 2029.  
4. Background and authority of the subsidy  
Background of the scheme has been stated at No. 3 (Policy Objectives) above. The implementing 
authority for the scheme is the Industries & Commerce Department of State Government o f Andhra 
Pradesh.  
5. Form of the subsidy (i.e. grant. Tax, loan, concession)  
Grants/tax reimbursements.  
6. To whom and how subsidy is provided and how determined  
a. Incentives are provided to following categories of manufacturing units:  
i. MSME Units: As defined by Go vernment of India, from time to time . 
ii. Large units (units in which investment on Plant & Machinery is less than 
Rupees  5,000 million  except MSMEs.  
iii. Mega Units (units in which investment on Plant & Machinery is of at least 
Rupees  5,000 million or direct employment generation of 2,000. Further, for sector 
such as textiles, food processing, biotech etc, definition of mega units will be different.  
b. Fiscal Incentives are given in form of power subsidy and procurement cost of land and 
Plant & Machinery for Swac hh Andhra (clean Andhra) scheme.  
c. Fiscal incentives for Large & MSME units:  
i. Reimbursement of 100% of stamp duty for purchase of land for industrial use or 
lease/mortgage/hypothecation of land.  
ii. For large industrial units, 50% of Net VAT/CST or State GST will  be reimbursed for a 
period of 7 years from the date of commercial production or up to realization of 100% 
fixed capital investment, whichever is earlier. For MSME units, 100% of Net VAT/CST 
or State GST will be reimbursed for a period of 5 years from the date of commercial 
production. For medium industries, 75% of Net VAT/CST or State GST will be G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  reimbursed for a period of 7 years from the date of commercial production or up to 
the realization of 100% fixed capital investment, whichever is earlier.  
iii. For sec tor specific MSME units like apparel, food processing, biotech, automobile 
VAT/CST/SGST concession may vary.  
d. Fiscal incentive for Mega Projects:  
The Government extends tailor -made benefits to mega projects to suit particular 
investment requirement on case to case basis based on the gestation period, pioneering 
nature, locational aspects, technology, project's importance to the state's industrial growth 
and its ability to generate large scale employment for people or revenues for the state.  
7. Subsidy per unit or in cases where there is not possible, the total amount or the  annual 
amount budgeted for that subsidy  
Release of funds for 2018 -19 are as below:  
Financial Year  2018 -19 
Expenditure (in Rupees million)  6,860.40  
8. Duration of subsidy and or any other limits attached to it, including date of inception/comment  
Duration of subsidy scheme is from 29 April 2015 to 31 March 2020.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to estimate th e trade effects, if any, that may result from this subsidy.  
2  SCHEMES OF THE STATE  GOVERNMENT OF BIHAR  
1. Title of Policy containing the subsidy scheme  
Schemes under Bihar Industrial Investment Promotion Policy, 2016.  
2. Period of notification  
2018-19. 
3. Policy objective and/or purpose of subsidy  
Overall policy objectives are:  
i. To establish Bihar as the most preferred investment destination by leveraging the 
state's comparative advantages and maximizing employment opportunities for 
attaining a balanced regi onal and sustainable development.  
ii. Create direct employment opportunities for 0.5 million people across all economic 
sectors.  
iii. Create high -end infrastructure facilities to attract investments in the state.  
iv. Eradicate regional industrial imbalance by uniformly  extending the benefits of 
investment to all geographical areas of the state.  
v. Provide relatively more economic benefits to the priority sections of society such as 
women, differently abled, war widows, acid attack victims and third gender 
entrepreneurs.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  vi. Ensure that industries facilitate skill development of local people, so as to achieve the 
target of 15 million skilled youths.  
vii. Increase the competitiveness of MSMEs and adoption of Zero Defect Zero Effect 
manufacturing practice.  
4. Background and authority of  the subsidy  
Implementing authority for the scheme is Department of Industries, State Government of Bihar.  
5. Form of the subsidy (i.e. grant. Tax, loan, concession)  
Reimbursement.  
6. To whom and how subsidy is provided and how determined  
a. Subsidy is provided to:  
i. New units commencing commercial production between 1 Sept 2016 and 31 Aug 2021 
(i.e. policy period).  
ii. Any existing or new unit expanding its capacity by more than 50% of the existing 
capacity during policy period.  
iii. Any existing or new unit diversifying itse lf during the policy period.  
iv. Any existing or new unit modernising at least 50% of the capacity of the existing unit 
during the period.  
b. Four types of incentives are offered and same are determined as under:  
i. Reimbursement of Stamp Duty and Registration Fees:  
I. 100% reimbursement of stamp duty/registration fee lived on lease/sale/transfer of 
Industrial Land/ Shed. The reimbursement to be granted only first time and not at 
subsequent stages of lease/sale/transfer. This incentive is available for new units 
only. 
II.  No stamp duty to be paid in respect of land allotted by the Government to 
development authority of State.  
ii. Reimbursement of Land Conversion Fees:  
100% reimbursement of land conversion fee/change in land use fees being levied for 
conversion of agriculture land. Reimbursement is done after the unit commences 
commercial production.  
iii. Interest Subvention:  
I. Term loan interest rate or 10%, whichever is lower.  
II. Priority sectors: Up to 30% of approved project cost or Rupees 100 million , 
whichev er is less.  
III. Non-priority sectors : Up to 15% of approved project cost or Rs. 100 million, 
whichever is less.  
IV. There are enhanced benefits if units established by women, differently abled 
persons, war widows, acid attack victims and third gender entrepreneurs . G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  iv. Tax Benefits:  
I.  All new units can avail tax related benefits with a maximum limit of up to 70% of 
approved project cost in non -priority sector and up to 100% of approved project 
cost in priority sector.  
II. All new micro and small units and the units w hich are involved in generation of 
solar and/or renewable energy for commercial purpose will be given text benefits 
by additional 30% of approved project cost100% reimbursement of electricity 
duty. 
III. All new units can avail 80% reimbursement of admitted  VAT/CST/Entry Tax, for 
period of 5 years from the date of commencement of commercial production.  
IV. All new units can avail 100% reimbursement of electricity duty on power including 
captive power consumed by the same unit or exported to Bihar State Power  
Holding Company Limited for a period of 5 years from the date of commencement 
of commercial production. Electricity duty exemption will not be available on 
captive power exported to entities other than BSPHCL.  
7. Subsidy per unit or in cases where there is not possible, the total amount or the  annual 
amount budgeted for that subsidy  
Release of funds for FY 2018 -19 are as below:  
Financial Year  2018 -19 
Expenditure (in Rupees million)  3,500 
8. Duration of subsidy and or any other limits attached to it, including date of inception/comment  
The incentives under the policy are available for 5 years from the date of commencement of 
commercial production or up  to 5 years from the date of validity of this policy ( 31 August 2021), 
whichever is earlier.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to estimate the trade effects, if any, that may result from this subsidy.  
3  SCHEMES OF THE STATE  GOVERNMENT OF CHHATT ISGARH  
1. Title of Policy containing the subsidy scheme  
Schemes under the Industrial Policy, 2014 -19. 
2. Period of notification  
2017-18 to 2018 -19. 
3. Policy objective and/or purpose of subsidy  
The overall policy objectives are rapid industriali sation of the state, development of infrastructure, 
skill development, attraction of foreign investment, conducive environment for setting up of 
industrial units, balanced industrial growth,  increase per capita income and gross domestic product 
of state,  participation of  private sector in construction and maintenance of industrial infrastructure 
and setting up of pollution free and environment friendly industrial units.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  4. Background and authority of the subsidy  
Background of the scheme has been stated at No. 3 (Policy Objective) above. The implementing 
authority for scheme is Department of Industries, State Government of Chhattisgarh.  
5. Form of the subsidy (i.e. grant. Tax, loan, concession)  
Grant, exemption, reimbursement.  
6. To whom and how subsidy is provided an d how determined  
▪ Capital investment subsidy : 30% to 50% of fixed capital investment, subject to 
maximum limit of Rs. 3 million to 50 million.  
▪ Electricity Duty exemption : Full exemption up  to 5-10 years from the date of 
commencement of production.  
▪ Stamp Duty exemption : Full exemption on a) deeds executed for purchase/lease of land, 
shed and buildings and on deeds of transfer of land lease and b) up  to 3 years on 
execution of deeds related to loan and advances from the date of sanction of  loan by 
bank/financial institution.  
▪ Exemption/concession in land premium on allotment of land in industrial areas/industrial 
parks : 20% to 60% of land premium.  
▪ Project Report Subsidy : 1% of fixed capital investment subject to maximum of Rs. 0.1 
to 0.2 million. 
▪ Quality Certification subsidy : Reimbursement of 50% of amount spent on quality 
certification subject to maximum of Rs. 0.1 million for each certification.  
▪ Technical Patent subsidy : Reimbursement of 50% of amount spent on registration of 
patent subjec t to maximum of Rs. 0.5 million for each patent.  
7. Subsidy per unit or in cases where there is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Year wise release of funds are:  
Financial Year  Budget Allocation (in Rupees million)  Expenditure  
(in Rupees million)  
2017-18 2032.41  1,998.25  
2018-19 1896.30  1,722.91  
8. Duration of subsidy and or any other limits attached to it, including date of inception/comment  
The schemes under the policy are available for 5 years with effect from 01 November 2014 to 
31 October 2019.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to estimate the trade effects, if any, that may result from this subsidy.  
4  SCHEMES OF THE STATE  GOVERNMEN T OF GUJARAT  
4.1  Scheme for Incentive to Industries  
1. Title of Subsidy  
Financial assistance by way of Net Value Added Tax/Net State Goods and Services Tax (SGST) 
reimbursement to Micro, Small and Medium Enterprises (MSMEs), Large, Mega & Ultra Mega 
Industrial Un dertakings.  
2. Period covered by the Notification  
2018-19. G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  3. Policy Objective and/or purpose of subsidy  
To attract increased investments in the state in the manufacturing sector to create more employment 
opportunities and achieve balanced regional growth and inclusive development of the state.  
4. Background and authority of the subsidy  
The background of the scheme is stated at  No. 3 (Policy Objective) above. The details of scheme 
can be seen at https://ic.gujarat.gov.in/large -incentives. The administering authori ty for scheme is 
Industries & Mines Department of State Government of Gujarat.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Reimbursement of Net VAT /Net SGST Paid.  
6. To whom and how subsidy is provided  
This scheme is applicable to a New Indu strial Undertaking or an Existing Industrial undertaking that 
undertakes expansion and which commences the commercial production during the operative period 
of the scheme (i.e. between 25 July 2016 and 24 July 2021). The incentive is available in form of 
reimbursement only. The industrial undertaking shall be reimbursed the eligible incentive up to the 
extent of the State GST paid on intra -state sale, subject to the tax actually realized in the 
government treasury, within the overall ceiling of eligible amo unt and period. Incentives is allowed 
only for eligible goods manufactured in the eligible unit and not on the resale of goods.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Releas e of funds for FY 2018 -19 are as below:  
Financial Year  2018 -19 
Expenditure (in Rupees million)  NIL 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
The scheme came into force from 25 July 2016 and will remain applicable for a period of five years, 
i.e. up to 24 July 2021.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to assess the trade effects, if any, that may result from this subsi dy. 
4.2  Scheme for assistance for Plastic Industries  
1. Title of Subsidy  
Financial assistance for Plastic Industry of Net VAT/Net State Goods and Services Tax (SGST) 
reimbursement to Micro, Small and Medium Enterprises  (MSMEs) . 
2. Period covered by the Notification  
2016-17 to 2018 -19. 
3. Policy Objective and/or purpose of subsidy  
To attract increased investments in the state in the manufacturing sector to create more employment 
opportunities and achieve balanced regional growth and inclusive development of the state.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  4. Background and authority of the subsidy  
The background of the scheme is stated at No. 3 (Policy Objective) above. The details of scheme 
can be seen at https://ic.gujarat.gov.in/large -incentives . The administering authority for scheme is 
Industries & Mines Department of State Government of Gujarat.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Reimbursement of Net VAT /Net SGST Paid.  
6. To whom and how subsidy is provided  
This scheme is app licable to a New Industrial Undertaking or an Existing Industrial undertaking that 
undertakes expansion and which commences the commercial production during the operative period 
of the scheme (i.e. between 01 January 2015 and 31 December 2019). The incenti ve is available in 
form of reimbursement only. The industrial undertaking shall be reimbursed the eligible incentive up 
to the extent of the State GST paid on intra -state sale, subject to the tax actually realized in the 
government treasury, within the ove rall ceiling of eligible amount and period. Incentives is allowed 
only for eligible goods manufactured in the eligible unit and not on the resale of goods.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Net VAT/ Net SGST reimbursed to an industrial undertaking in one financial year will not exceed 
one-seventh of the total amount of eligible incentive.  
Release of funds for FY 2016 -17 to 2018 -19 are as below:  
Financial Year  2016 -17 2017 -18 2018 -19 
Expenditure (in Rupees million)  NIL NIL NIL 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
The scheme came into force from 01 January 2015 and will remain applicable for a period of five 
years, i.e. up to 31 December 2019.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to assess the trade effects, if any, that may result from this subsidy.  
4.3  Gujarat Aeros pace & Defence incentive scheme for Aerospace & Defence Enterprises  
1. Title of Subsidy  
Gujarat Aerospace and Defence (A&D) incentive scheme for Aerospace and Defence Enterprises.  
2. Period covered by the Notification  
2016-17 to 2018 -19. 
3. Policy Objective and/or purpose of subsidy  
To attract increased investments in the state in the Aerospace and Defence sector to create more 
employment opportunities and achieve balanced regional growth and inclusive development of the 
state.  
The vision of the gov ernment is to establish Gujarat as a hub for indigenous aerospace and Defence 
Manufacturing, develop globally competitive talent in the sector, promote investment in R&D to drive G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  globally recognized innovation in product design and manufacturing, and suppo rt enabling institution 
in the A&D manufacturing ecosystem.  
4. Background and authority of the subsidy  
The background of the scheme is stated at No. 3 (Policy Objective) above. The details of scheme 
can be seen at https://ic.gujarat.gov.in/large -incentives. The administering authority for scheme is 
Industries & Mines Department of State Government of Gujarat.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Reimbursement of Net VAT /Net SGST Paid.  
6. To whom and how subsidy is provided  
This scheme is  applicable to a New A&D Enterprise or an Existing A&D Enterprise that undertakes 
expansion and which commences the commercial production during the operative period of the 
scheme (i.e. from 19 December 2016 to 31 December 2025). The incentive is available  in form of 
reimbursement only. The A&D Enterprise shall be reimbursed the eligible incentive up to the extent 
of the State GST paid on intra -state sale, subject to the tax actually realized in the government 
treasury, within the overall ceiling of eligibl e amount and period. Incentives is allowed only for 
eligible goods manufactured in the eligible unit and not on the resale of goods.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Net VAT/ Net State GST reimbursed to an A&D Enterprise in one financial year will not exceed one -
tenth of the total amount of eligible incentive.  
Release of funds up to FY 2016 -17 to 2018 -19 areas below:  
Financial Year  2016-17 2017-18 2018-19 
Expenditure (in Rupees million)  NIL NIL NIL 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
The scheme came into force from 19 December 2016 and will remain applicable for a period of ten 
years , i.e. up to 31 December 2025.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to assess the trade effects, if any, that may result from this subsidy.  
4.4  Scheme for assistance for Labour  Intensive Industr ies 
1. Title of Subsidy:  
New Industrial Policy 2015: Scheme for assistance for Labour  Intensive Industries.  
2. Period Covered by Notification  
2015-16 to 2018 -19. 
3. Policy Objective and/or purpose of subsidy  
The role of labour  intensive  industries is to enable Government & Private enterprises in different 
sectors to fully exploit the young population of the State generating maximum employment. In view 
of this the Government intends to provide adequate thrust to the labour  intensive indus tries by G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  provisioning specific packages that would become catalytic to state's industrial development and to 
provide certain incentives to employment intensive industrial sector like Garment, Apparels & Made -
Ups industry, Agro and Food processing, assembli ng enterprises and others similar sectors th at have 
large scale opportunities for generation of employment.  
4. Background and authority of the subsidy  
The details of scheme can be seen at https://ic.g ujarat.gov.in/large -incentives . The administering 
authority for scheme is Industries & Mines Department of State Government of Gujarat.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Reimbursement of Net VAT /Net SGST Paid.  
6. To whom and how su bsidy/Assistance is provided  
This scheme is applicable to a New Industrial Undertaking or an Existing Industrial undertaking that 
undertakes expansion and which commences the commercial production during the operative period 
of the scheme (i.e. between 01 January 2015 and 31 December 2019).  
An enterprise of the following industries/ sector which provides the employment to minimum number 
of persons as mentioned against its name of sector will be eligible.  
a. Garment, Apparels & Ma de ups Industry – 300 persons  
b. Agro & Food Processing – 100 persons  
c. Assembling Enterprises with partial manufacturing facilities – 100 persons  
d. Any other labour  intensive  industries/ sector, with minimum persons required to 
be employed by it, as decided by the State Level Empowered Committee time to 
time. 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsi dy 
Release of funds in 2015 -16 to 2018 -19 are as below:  
Financial Year  2015-16 2016-17 2017-18 2018-19 
Expenditure (in Rupees million)  NIL NIL NIL NIL 
8. Duration of the subsidy/Assistance and/or any other time limits attached to it, including date 
of inception/commencement  
The scheme came into force from 01 January 2015 and will remain applicable for a  period of five 
years, i.e. up to 31 December 2019 . 
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possibl e to assess the trade effects, if any, that may result from this subsidy.  
4.5  Scheme of assistance to Mega /Innovative Projects  
1. Title of Subsidy  
Scheme for Assistance to Mega/Innovative Projects  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  2. Period covered by the Notification  
2016-17 to 2018 -19. 
3. Policy Objective and/or purpose of subsidy  
The State Government intends to promote and facilitate mega projects in certain focus sectors that 
have a large multiplier effect on economy, leading to employment generation and have inclusive 
development of the state. Such projects are expected to promote ancillary and auxiliary industries, 
particularly in SME sectors. Thus facilitating development of Mega Projects is being envisaged as a 
key strategy to trigger large scale economic activity in the state.  
With th e objective of remaining forefront of competition and technology innovation, and to attract 
large-scale investment with state -of-the-art technology, the government also intends to encourage 
and attract investment in innovative projects.  
4. Background and auth ority of the subsidy  
The background of the scheme is Industrial Policy 2009 and 2016. The details of scheme can be 
seen at https://ic.gujarat.gov.in/large -incentives . The administering authority fo r scheme is 
Industries & Mines Department of State Government of Gujarat.  
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
Reimbursement of VAT /SGST Paid.  
6. To whom and how subsidy is provided  
This scheme is applicable to a new Mega/Innovative Projects which commences the commercial 
production during the operative period of the scheme (i.e. from 01 July 2016 to 30 June 2021). The 
incentive is available in form of reimbursement only. The Mega/Inn ovative Projects shall be 
reimbursed the eligible incentive up to the extent of the State GST paid on intra -state sale, subject 
to the tax actually realized in the government treasury, within the overall ceiling of eligible amount 
and period. Incentives is  allowed only for eligible goods manufactured in the eligible unit and not on 
the resale of goods.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Release of funds up to 2016 -17 to 2 018-19 areas below:  
Financial Year  2016-17 2017-18 2018-19 
Expenditure (in Rupees million)  965.4  1,153.2  518.3  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
The scheme came into force from 1 July 2016 and will remain applicable for a period of five years 
i.e. up to30 June 2021.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to assess the trade effects, if any, that may result from this subsidy.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  4.6  Schemes under Gujarat Textile Policy – 2012  
1. Title of Subsidy  
Schemes under Gujarat Textile Policy – 2012: Integrated approach to strengthen the value chain, 
Farm- Fiber- Fabric - Fashion (Garment) to Foreign (export) Financial assistance by way of Interest 
Subsidy , VAT/SGST Assistance, and Power Tariff.  
2. Period covered by the Notification  
2013-14 to 2018 -19. 
3. Policy Objective and/or purpose of subsidy  
With the objective of continuing the leadership in the textile industry with a v ision of Enhancing the 
sustainable growth of Farmers by way of Value Addition and to strengthen the value chain for the 
overall growth of Cotton Textile industries in one hand and Synthetic Filament Textile Industry on 
the other. State Government intend to  provide necessary support for entire value chain i.e. Ginning, 
Spinning, Weaving, Dyeing & Processing, Knitting, Apparel, Garmenting and Technical Textiles either 
for new investment and expansion or for technology upgradation to become internationally 
competitive.  
4. Background and authority of the subsidy  
The background of the scheme is stated at No. 3 (Policy Objective) above. The details of scheme 
can be seen at https://ic.gujarat.gov.in/large -incentives . The administering authority for scheme is 
Industries & Mines Department of State Government of Gujarat.  
5. Form of the subsidy (i.e., grant, loan, tax concess ion, etc.)  
▪ Interest Subsidy will be at the rate of 5% per annum (7% for spinning unit and 
garment/made -ups unit and 6% for Technical Textile) for five years.  
▪ Power Tariff subsidy at the rate of Rs.1 per unit to cotton spinning and weaving units for 
five ye ars. 
▪ VAT/ GST assistance for eight years.  
6. To whom and how subsidy is provided  
This scheme is applicable to a New Industrial Undertaking or an existing Industrial undertaking that 
undertakes expansion or Diversification or Modernization and which commences the commercial 
production during the operative period of the scheme.  
Ginning & Pressing, Spinning, Weaving (with or without preparatory) Dyeing & Processing, Knitting, 
Garment /Made -ups Machine Carpeting, Machine Embroidery and any other activities/process  like 
crimping, texturizing, twisting, winding, sizing etc. within the Textile value chain may be eligible for 
subsidy under the scheme.  
7. Incentive Paid Under Gujarat Textile Policy - 2012 
Release of funds in 2013 -14 to 2018 -19 are as below:  
Financial Year  2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 
Expenditure (in Rupees million)  400.00  1,340.00  3,900.00  7,364.6  9,459.0  1,7404.5  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
The scheme came into operation from the date of issuance of the GR Dt. 05/09/2012 and remained 
in force for five years. Government of Gujarat had extended the Policy for further one year effective 
from 04 September 2017 to 03 Septemb er 2018 vide GR dated 04 September 2017.  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to assess the trade effects, if any, that may result from this subsidy.  
5  SCHEMES OF THE STATE  GOVERNMENT OF HARYAN A 
1. Title of subsidy  
Schemes under the Enterprises Promotion Policy, 2015.  
2. Period of Notification  
2018-19. 
3. Policy objective and/or purpose of Subsidy  
The policy objective is to facilitate balanced regional and sustainable development, ski ll 
development, generate employment opportunities, increase of MSMEs through cluster development 
and adopting "Zero Defect Zero Effect" manufacturing practices.  
4. Background and authority of the subsidy  
The background of the scheme has been stated at No. 3 (Policy Objectives) above. The implementing 
authority for scheme is Department of Industries & Commerce, Government of State of Haryana.  
5. Form of the subsidy (i.e. grant tax, loan, concession)  
Grant/Tax Exemptions.  
6. To whom and how subsidy is provided  
Incenti ves under the scheme are provided as per details mentioned below:  
a. For big projects and large units:  
i) Investment Subsidy on VAT.  
ii) Employment Generation Subsidy: For capacity building.  
iii) Electricity Duty Exemption: 100% exemption for payment of elect ricity duty for new 
mega projects for a period of 5 -7 years.  
iv) Stamp Duty Refund: Up to 100% refund of stamp duty for the land area meant for 
industrial use.  
b. For Micro, Small and Medium Enterprises:  
i) Investment Subsidy on VAT.  
ii) Interest Subsidy.  
iii) Assistance for Technology Acquisition.  
iv) Testing Equipment Assistance.  
v) Patent Cost reimbursement.  
vi) Assistance for Environment Compliance.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  vii) Energy, Water and Safety Audit . 
viii) Entrepreneurship Development Program.  
ix) Quality Certificatio n. 
x) Stamp Duty Refund.  
xi) Electricity Duty Exemption . 
xii) Market Development Assistance.  
xiii) Collateral Free Credit Guarantee Scheme.  
xiv)Power Tariff Subsidy.  
c. For Textile Sector (apparel/knitting/ embroidery/ technical textiles):  
i) Investment Subsidy on VAT.  
ii) Employment Generation Subsidy . 
iii) Interest Subsidy on term loan.  
iv) Refund of stamp duty for establishment of enterprise.  
v) Power Tariff Subsidy.  
vi) Electricity Duty Exemption.  
In addition to above, similar incentives ar e applicable for sectors namely, Agro industries and food 
processing, footwear, electronics, software, handicrafts.  
7. Subsidy per unit or in cases where there is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Release of funds i n 2018 -19 are as below:  
Financial Year  2018 -19 
Expenditure (in Rupees million)  694.2  
8. Duration of subsidy and or any other limits attached to it, including date of 
inception/comments  
The policy was notified on 14 August 2015 and is effective from 15 August 2015. The policy is 
continuing.  
9. Statistical date permitting an assessment of the trade effect of the subsidy  
It has not been possible to estimate the trade effects, if any, that may result from this subsidy.  
6  SCHEMES OF THE STATE  GOVERNMENT OF HIMAC HAL PRADESH  
1. Title of the Schemes  
a. Mukhya Mantri Swawlamban Yojna (MMSY) . 
b. Rules Regarding Grant of Incentives, Concessions & Facilities to the Industrial Units in 
Himachal Pradesh -2004 as amended up  to 17.07.2018 (Incentive Rules) . G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  c. Chief Minister's Start-up/ Innovation Projects/ New Industries Scheme (CMS Start -up 
scheme) . 
d. State Mission on Food Processing (SMFP).  
e. Rural Engineering Based Training Programme (REBTP).  
2. Period of Notification:  
2018-19. 
Duration of all the aforesaid 5 schemes respectively a re as below:  
a. Came into effect from 9th February, 2019.  
b. Effective from 2004 onwards.  
c. Effective from 15th November, 2016 onwards.  
d. Effective since 2016 onward.  
e. Effective from 2013 -14 onward.  
3. Policy objective and /or purpose of the subsidy  
a. To provide self -employment to the bona  fide Himachali unemployed youth of 18 -45 years 
of age.  
b. To attract new investments and to provide fiscal benefits all the Industrial units set up in 
the State of Himachal Pradesh.  
c. Self-employment/ employment generation and income gene ration.  
d. To promote new ideas/products and processes suitable for commercialization through 
start-ups. 
e. Facilitate & promote innovation.  
f. To turn the youth from job seeker to job provider.  
g. To upgrade the skills of unskilled target group in rural industrial &  technical services.  
h. To encourage entrepreneurship in rural engineering based industries & technical services 
through capacity building.  
4. Background and authority for subsidy (including identification of the legislation under which it 
is granted  
Background of the schemes has been stated at No. 3 above. Other features of schemes are as below:  
a. Scheme of MMSY was notified by the State Government vide State Gazette  notification 
dated 23.02.2019.  
b. Other incentives are notified for self -employment & to boost industrialization in the State. 
Authority of release of subsidy in case of MMSY is the concerned Deputy Commissioner of 
various districts of the State of HP.  
c. The authority of disbursal of incentives under Rules Regarding Grant of Ince ntives, 
Concessions & Facilities to the Industrial units in the State of Himachal Pradesh -2004 as 
G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  amended up  to 17.07.2018 are with the concerned Departments of the Directorate of 
Industries & the concerned General Manager, District Industries Centre.  
5. Form of subsidy  
Generally in the form of Grant.  
a. Capital Subsidy on Plant & Machinery.  
b. Interest Subsidy.  
c. Subsidy towards the cost of preparation of feasibility report.  
d. Power Concessions . 
e. State Good and Services Tax (SGST) Reimbursement . 
f. Incentives for promotion  of export . 
g. State award scheme for exports, productivity, Quality & outstanding performance in 
Handicraft & Handloom sector to small scale enterprises.  
h. Incentive for setting up testing centres by Industrial Associations, NGOs, Societies Govt. 
Corporations/  Public sector undertakings.  
i. Purchase preference.  
j. 0% stamp duty on instruments of conveyance deed and lease deed.  
k. Incentives for Technology Upgradation . 
l. Incentives on installation of new pollution control devices . 
m. Rs. 25,000/ - per month as sustenance allow ance for one year.  
n. Provision of providing mentoring services, access to their labs, facilities, etc. on a free -of-
cost basis.  
o. Marketing/commercialization assistance of up  to Rs. 1 million.  
p. Patent filing cost up  to Rs 200,000 per Indian and up  to Rs.1 million for foreign patent.  
q. Rs. 3 million per incubator per year up to a period of three years.  
r. A grant of maximum Rs. 1 million for meeting the recurring expenditure . 
s. Interest subvention at 5 % up  to a loan of Rs 2.5 million for three years . 
t. Land at concession al rate at 50% of the rates fixed . 
u. Stamp duty at 3% only on conveyance deed and lease deed . 
v. Exempted from payment of Central GST/State GST for a period of 3 years or till they reach 
a turnover of Rs. 20 million per year, whichever is earlier.  
w. Fees for obtaining consent reduced by 10% to 25% . 
x. Subsidy ranging from Rs. 500,000 to Rs. 50 million depending on the scheme in the State 
Mission on Food Processing.  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  y. Stipend to trainees at Rs. 2,400 per candidate.  
6. To whom and how the subsidy is provided: (customers, or others; through what mechanism; 
whether fixed or fluctuate amount per unit; if the latter, how determined)  
To the applicant after the approval by the District Level Committee (DLC) under the chairmans hip 
of the concerned Deputy Commissioner. The subsidy is released in the term loan account of the 
beneficiary in the form of Fixed Deposit after the approval of the chairman of DI -C. Subsidy  is 
provided as per eligibility given in the scheme and quantum of  subsidy is defined in each scheme . 
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budget for that subsidy  
Budgetary allocation and expenditure thereof in 2018 -19: 
Schemes  Budget Allocation Expenditure 
(in Rupees million)  Expenditure (in  Rupees million)  
MMSY  800.00  85.0 
Incentive Rules  03.80  01.1 
CMS Startup  30.00  12.34  
SMFP  100.00  40.7 
REBTP  08.00  08.0 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inspection/commencement  
Interest Subsidy  at 5% for three years on loan up  to Rs 4 million sanctioned by a "Financial 
Institution ". Capital subsidy is one time  grant. For other subsidies, duration is from the date of 
notification of various schemes and are continuing.  
9. Statistical data permit an assessment of the trade effects of the subsidy.  
It has not been possible to estimate the trade effect, if any, that may  result from this subsidy.  
7  SCHEMES OF STATE GOV ERNMENT OF KERALA  
7.1  Entrepreneur Support Scheme (ESS), 2012  
1. Title of the subsidy programme  
Entrepreneur Support Scheme (ESS) 2012 under the Industrial policy 2012 -2013 of the 
State  Government of Kerala.  
2. Period covered by the notification  
2012-13 to 2018 -19. 
3. Policy objective and /or purpose of the subsidy  
The State Government of Kerala launched ESS by merging and replacing the 9 schemes existed 
earlier. The ESS intended to  provide support to Micro, Small, a nd Medium enterprises and give one 
time support to entrepreneurs with due regard to special categories by optimal utilisation of funds 
and giving flexibility of operation while implementing the scheme.  
4. Background and Authority for the subsidy  
The ESS merge d and replaced nine previous schemes in the Department of industries and titled it 
as the "Entrepreneur support scheme - 2012" effective from 01/04/2012 onwards.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  The implementing authority is the Department of Industries and commerce, State Government of 
Kerala.  
5. Form of subsidy  
Assistance under the ESS are released to the units in three stages, as grants . 
a. Start-up Support . 
b. Investment Support . 
c. Technology Support.  
6. To whom and how the subsidy is provided (whether to producers, to exporters or  others 
through wh at mechanism, whether a fixed or fluctuating amount per unit;  if the latter, how 
determined)  
All new Micro, Small and Medium Enterprises, engaged in manufacturing activities, job work activities 
and existing units which undergo expansion, modernisation, di versification and setup in the state, 
shall be eligible for this assistance.  
Assistance under the Entrepreneur Support Scheme (ESS) shall be released to the newly set up unit 
& existing units in the case of expansion/modernisation/diversification entrepren eur(s)/unit in 3 
stages viz. Start up  Support, Investment Support and Technology Support.  
The start -up support is provided for enterprises prior to commencement of commercial production, 
Investment Support after the commencement of commercial production an d Technology Support 
after commencing production on acquiring new technology.  
a. An assistance of 15% of the Total Fixed Capital Investment limited to Rs. 20 lakhs will be 
payable to all MSMEs set up in the state engaged in both manufacturing, job work, and 
existing units which undergo Expansion, Diversification & Modernisation provided the 
enterprise is a separate legal entity.  
b. All MSMEs established by entrepreneurs belonging to women, scheduled castes and 
scheduled Tribes and young entrepreneurs (between the  age of 18 -45 years) shall be 
eligible for an assistance of 20% of the Total Fixed Capital Investment limited to 
Rs. 3 million.  
c. All units including under priority sector i.e., a) Rubber based industries b) Agro based and 
food processing industries c) Readymade Garments d) Industries manufacturing 
equipment and machinery for Non -conventional energy generation e) Bio Technology 
based  industries f) 100 0/0 Export Oriented Units g) Bio degradable plastic industries 
h) Plastic waste recycling industries i) Bio fertilizer industries, shall be eligible for an 
additional assistance of 10% of the Fixed Capital Investment subject to a ceiling  of 
Rs. 1 million.  
d. In the case of MSMEs set up in the backward districts such as Idukki, Wayanad, Kasaragod 
and Pathanamthitta, there shall be an additional assistance of 10% of the Fixed Capital 
Investment subject to a ceiling of Rs. 1 million.  
e. In the cas e of micro, small and medium industrial units set up after acquiring new 
technology from approved research institutions, recognized as such by the state or the 
central Government, there shall be an additional assistance of 10% of the Fixed Capital 
Investme nt subject to a ceiling of Rs. 1 million.  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  7. Subsidy per unit, or in cases where this is not possible, the total amount  or the annual amount 
budgeted for that subsidy  
Year-wise release of funds from 2012 -13 to 2018 -19 are indicated below:  
Financial Year  Expenditure (in Rupees million)  
2012 -13 244.70  
2013 -14 251.30  
2014 -15 299.95  
2015 -16 399.76  
2016 -17 463.39  
2017 -18 540.00  
2018 -19 550.00  
8. Duration of the subsidy and /or any other time limits attached to it, including date of inception/ 
commencement:  
This is one time assistance and the maximum eligible assistance is Rs.3 million per applicant unit. 
The unit should apply for subsidy within one year from the Date of Commencement of commercial 
Production. The units which availed subsidy should function continuously for 5 years from the Date 
of Commencement of commercial Production.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to estimate the trade effects, if any, that may result from this subsidy.  
7.2  Scheme for Interest Subvention to Nano Household Enterprises  
1. Title of the subsidy programme  
Scheme for Interest Subvention to Nano Household Enterprises under the State Government of 
Kerala Industrial policy 2017 -18. 
2. Period covere d by the notification  
2017-18 to 2018 -19. 
3. Policy objective and /or purpose of the subsidy  
a. To generate employment opportunities in household through new self -employment 
projects (Nano Household units).  
b. To aggregate household/ nano units and increase the exte nt of potential employment.  
c. To provide continuous and sustainable employment and increase wage earning capacity 
of unorganized/ household units.  
4. Background and Authority for the subsidy:(including identification of  the legislation under 
which it is granted ) 
The majority of enterprises in the state fall in the category of nano with Fixed Capital Investment 
of less than Rs 500,000 and the Government considers it important to promote the nano and 
house hold sector as this constitutes the key economic sector of  the state.  
The implementing authority is the Department of Industries and Commerce, in the State 
Government of Kerala.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  5. Form of subsidy:  
Interest subvention at the rate of 6% to 8% on the term loans availed by the unit from the financial 
institution for a period of 3 years on reimbursement basis.  
6. To whom and how the subsidy is provided (whether to producers, to exporters or others 
through what mechanism, whether a fixed or fluctuating amount per unit; if the latter, how 
determined)  
All the Nano and household unit with Fixed Capital Investment is less than Rs.500,000 in both 
manufacturing and units engaged in job work and included in white and green category as per 
pollution control norms with connected load of 5 Horse Power (HP)  or less are eligible.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
(Figures in Rupees millions)  
Financial Year  Budget allocation  Expenditure.  
2017-18 50 1.4  
2018-19 50 1.6 
8. Duration of the subsidy and /or any other time limits attached to it, including date of inception/ 
commencement  
The assistance is provided for the first years (on reimbursement basis).after the unit is set up.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to estimate the trade effects, if any, that may result from this subsidy.  
8  SCHEMES OF STATE GOV ERNMENT OF KARNATAKA  
1. Title of Subsidy  
Subsidy schemes under the Industrial policy 2014 -19 of the State Government of Karna taka. 
The Karnataka State has announced New Industrial Policy 2014 -19. 
2. Period of notification  
2014-15 to 2018 -19. (From July 2014 up  to October 2019) . 
3. Policy objective and /or purpose of subsidy  
The vision of Karnataka Industrial Policy 2014 -19, made effective from 01 -10-2014, is to build a 
prosperous Karnataka through inclusive, sustainable and balanced industrial development thereby 
creating large employment opportunities.  
The objectives of the policy are as follows:  
a. To maintain an industrial growth rate of 12% per annum.  
b. To enhance the contribution of manufacturing sector to the state GDP from present level 
of 16.87% to 20% by end of policy period.  
c. To attract investment of Rs.5.00 lakh crore.  
d. To create employment opportunities for 1.5 million persons . 
G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  e. To create an environment to enhance ease of doing business in the State.  
4. Backqround and authority of the subsidy  
The background of the scheme is stated at No.3 (policy objective) above. The details of  the scheme 
can be seen at https://www.karnatakaindustry.gov.in . 
The administering authority for the scheme is the Commissioner for Industrial Development and 
Director of Industries and Commerce of State Government of Karnataka.  
5. Form of the Subsidy  
Interest  free loan for VAT payment /State GST, Refund of Sales Tax to Industries, Grant for 
upgrading of old Industrial Areas under Critical Infrastructure . 
6. To whom and how the subsidy is provided  
The details of standard package of incentives and concessions offer ed for establishment of Industries 
under Large, Mega, Ultra Mega, Super Mega category of enterprises are as under:  
a. Exemption from Stamp Duty.  
b. Concessional Registration Charges.  
c. Reimbursement of Land Conversion Fee . 
d. Exemption from Entry Tax.  
e. Subsidy for set ting up ETPs/Anchor units . 
f. Interest free loan on VAT payment /SGST . 
As per the Industrial policy 2014 -19, all New Large & Mega enterprises established in 
Various Zones are eligible to avail interest free loan on VAT to an extent of 40% to 100% 
of the value of fixed asset for a period of 7 years to maximum 14 years depending on their 
investment, creation of direct employment & Zone.  
g. Refund of Sales Tax to Industries.  
In Industrial Policies 2009 -14 and 2014 -19 provisions have been made to sanction specia l 
package of incentives and concessions to mega projects with project cost of more than 
Rs. 2500 million. CST reimbursement sanctioned under special package of incentives & 
concession is being reimbursed under this scheme.  
h. Industrial Infrastructure for Ins titutions . 
In order to provide quality infrastructure with comprehensive facilities and to attract 
investors to the State and as stated in 2009 -14 and 2014 -19 industrial policies, budgetary 
support provided to upgrade infrastructure facilities in the old i ndustrial areas/estates.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Year-wise release of funds from 2014 -15 to 2018 -19 are indicated below:  
Schemes  Funds released Financial year -wise  
(in Rupees million)  
2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 
Interest free loan on VAT payment/ SGST  449.8  997.6  970.2  1,922.3  3,195.9  
Refund of Sales       
Tax to       
Industries /       
SGST  53.2 439.9  894.1  799.9  2,994.5  
Industrial       
Infrastructure for       
Institutions  229.6  2,153.3  1,166.4  2,826.6  1,866.1  
8. Duration of the subsidy and /or any other time limits attached to it, including date of 
inception/commencement  
The Karnataka Industrial policy and package of Incentives and concessions has come in to effect 
from 01 -10-2014 and will be valid for a period of five years or till a new policy is announced.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
It has not been po ssible to estimate the trade effects, if any, that may result from this subsidy.  
9  SCHEMES OF STATE GOV ERNMENT OF MADHYA PR ADESH  
1. Title of subsidy  
a. Schemes under the Industrial Promotion Policy -2014 (Amended as on 2018):  
Department of Industrial Policy and Inv estment Promotion.  
b. Schemes under the MP MSME Development Policy, 2017:  
Department of Micro, Small & Medium Enterprises.  
2. Period of Notification  
2014-15 to 2018 -19. 
3. Policy objectives and/or purpose of Subsidy  
The policy objective is to achieve inclusive growth and bring economic prosperity to the people of 
the state through sustainable industrialisation, employment generation, skill set enhancement, 
balanced regional development, ease of doing business and environment friendly practises in 
enter prise development.  
4. Background and authority of the subsidy  
The background of the scheme has been stated at No. 3 (Policy Objectives) above.  
Large industries having investment of above Rs. 100 million  in plant & machinery and building are 
being dealt by Dep artment of Industrial Policy and Investment Promotion, State Government of 
Madhya Pradesh. Hence the implementing authority for Industrial Promotion Policy -2014 (as 
amended in 2018) is Department of Industrial Policy and Investment Promotion. Details of th e 
scheme can be accessed at www.mpindustry.gov.in  and https://invest.mp.gov.in . 
With the creation of separate Department for Micro, Small and Medium Enterprises in the year 2017, 
a separate policy for development of MSMEs has come into force from 16 -11-2017. Hence the G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  implementing authority for MP MSME Development Policy, 2017 is Department of Micro, Small and 
Medium Enterprises, State Government of Madhya Pradesh. Detai ls of the scheme can be accessed 
at https://mpmsme.gov.in . 
5. Form of the subsidy (i.e. grant tax, loan, concession)  
Grant/Exemptions/R eimbursement/Concessions, as applicable. With the advent of GST regime from 
01 July, 2017, a tax delinked investment assistance spread over 7 years is offered to industries 
ranging from 10% to 40% of capital investment in the unit in case of large industries whereas in 
case of MSMEs, an investment subsidy of 40% of investment in plant and machinery in 5 equated 
annual instalments is being offered.  
6. To whom and how subsidy is provided  
To Large Industries  Incentives provided under the Investment Promotion Policy -2014 (as 
amended in 2018) are as under:  
a. Assistance for Green Industrialization : Small, Medium, Large & Mega industries shall 
be provided a capital subsidy of 50% up  to a maximum of Rs. 2.5 million for investment 
in setting up of waste management systems (such as Effluent Treatment Plant, Sewage 
Treatment Plant etc.) , pollution control devices, health and safety standards, water 
conservation/harvesting etc.  
b. Investment P romotion Assistance for Large Scale Industry : Large scale industries 
commencing their commercial production from 1 April 2018 to 31 March 2022 will be 
eligible for Investment Promotion Assistance in lieu of VAT/CST assistance and Entry Tax 
exemption following the introduction of GST system.  
c. Electricity duty exemption : All eligible units having "High Tension (HT) " connection by 
any DISCOM in the state sha ll be exempted from electricity duty for a period ranging 
between 5 to 10 years.  
d. Mandi Fee exemption : All Food processing units including expansion and diversification 
shall be given exemption from Mandi fee for a period of five years or a maximum of 50% 
of investment in plant & machinery (whichever is lower).  
e. Incentive  on Training expense/Employment generation  
i. Training expense reimbursement: Expenditure reimbursement of Rs 13000/ - per new 
employee for 5 years, for skill development and training, towards th e needs of 
technical and skilled workers in textile projects.  
ii. Employment generation subsidy: All the new employees appointed in the period of first 
eight years from the date of commencement of commercial production in the unit by 
the employer, will be elig ible to receive benefit of an assistance of Rs 5000/ - per 
employee per month. The assistance period will be maximum 5 years. This assistance 
will be limited to a period of 10 years from the date of commencement of commercial 
production, which means that th e new employee appointed in the eighth year will be 
eligible for employment generation subsidy from the date of appointment for the next 
two years.  
f. Reimbursement of Stamp Duty and Registration Fee : Units who take land on lease 
in industrial areas established by the State Government, will be reimbursed the stamp 
duty and registration fee charged on lease land.  
g. Exemption from Land Development fee : In accordance with the provisions of Madhya 
Pradesh State Industrial Land and Building Management Rules,  2015, in addition to the 
effective relaxation of land premium, garmenting units will be given 50% discount in the 
development fee charged on units in the case of taking lease land in the industrial area.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  h. Concession on Electricity duty : All eligible new un its will be provided electricity duty 
exemption for a period of 7 years from the date of taking the electrical connection.  
i. Concession on Power tariff : Power supply at a fixed rate of Rs 5 per unit on any new 
electrical connection, for 5 years from the date  of commercial production in the project.  
Note : Only units established in industrial areas developed by Trade and Investment 
Facilitation Corporation Ltd/Audogik Kendra Vikas Nigam or notified industrial areas shall 
be eligible for these incentives.  
j. Specia l Incentive Package for Warehousing and Logistics sector : 
• Investment assistance to the tune of 15% (cap of Rs.150 million) on GFCI . 
• Infrastructure development assistance to the tune of 50% (Cap of Rs. 10 million) to 
construct access infrastructure to the s ite. 
• 100% reimbursement of Stamp duty and registration charges on the loan document . 
• Electricity duty exemption . 
• Relaxed FAR of 1:0.60 and maximum ground coverage of 60% . 
k. Additional Benefit (Governed by MPERC's Tariff order):  
Rebate for new HT connections:  A rebate of Rs 1/Unit or 20% whichever would be less 
is applicable in energy charges for new connection for the consumption recorded. The 
rebate shall be allowed up  to the FY 2021 -22 from the date of connection for such new 
projects for which agreements for availing supply from licensee are finalized during and 
after FY 2016 -17. 
Incentives provided to Micro, Small and Medium Enterprises under the Madhya Pradesh MSME 
Development Policy -2017 are as under.  
a) Industrial Development Subsidy : Post GST,  a tax delinked investment assistance 
of 40% of investment in plant and machinery in 5 equated annual instalments.  
b) Green industrialisation : Capital subsidy of 50% subject to maximum of 
Rs. 2.50 million for investment in setting up of waste management syste ms, pollution 
control devices, health and safety standards, water conservation/harvesting etc.  
c) Electricity Duty exemption : All eligible units obtaining high tension power from 
DISCOMs for a period of 5 to 10 years.  
d) Patent/IPR  Cost reimbursement subject to maximum of Rs. 500,000.  
e) Reimbursement of 50% of fee, subject to maximum of Rs. 300,000, for obtaining 
quality certification.  
f) Reimbursement of 100% contribution in Contributory Provident Fund for 5 years, 
subject to maximum of  Rs. 500,000 to such eligible industrial units which are 
contributing maximum Rs. 1 ,000/- per permanent employees as employer's 
contribution with a condition of minimum 10 employees on its permanent roll.  
g) Infrastructure Development Assistance: 50% assistanc e subject to a maximum of Rs 
2.50million each, shall be provided to medium, subject of MSME scale industrial units 
for developing power, water & road infrastructure, if the investor acquires private 
land or gets undeveloped government land for setting up o f project.  
h) Assistance for Upgradation of Powerlooms.  
i) Capital subsidy of 20% of cost subject to maximum of Rs 20 million for setting up 
Industrial parks/flatted industrial complex having at least 5 food processing units 
and minimum area of 5 acres/carpet ar ea of 10,000 sq.  ft. G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  7. Subsidy per unit or in cases where there is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Year-wise expenditure on industrial subsidies under Department of Industrial Policy & 
Investment Promotion : 
(Amount in Rupees million)  
Financial Year  Expenditure  
2014-15 5,676.1  
2015-16 9,054.7  
2016-17 12,908.5  
2017-18 7,502.3  
2018-19 5,324.7  
Year-wise expenditure on Industrial subsidies under Department of Micro, Small & Medium 
Enterprises : 
(Amount in Rupees million)  
Financial Year  Expenditure  
2016-17 1,580.7  
2017-18 1,570.0  
2018-19 1,666.0  
8. Duration of subsidy and or any other limits attached to it, including date of 
inception/comments  
The incentives under the Investment Promotion Policy -2014 are effective from 1 November 2014 and 
are applicable up  to 31 March 2022. Special incentive packages to Readymade Garment units and 
Warehousing and Logistics sector are effective from 09 -04-2018 and 22 -06-2018 respectively and 
are applicable u p to 31 March 2022. Investment Promotion Assistance (post GST) is effective from 
1 April 2018 and are applicable up  to 31 March 2022.  
The incentives under the Madhya Pradesh MSME  Development Policy -2017 are effective from 
1 April 2018 and will remain in force till it is amended or superseded by the State Government.  
9. Statistical data permitting an assessment of the trade effect of the subsidy  
It has not been possible to estimate wh at trade effects, if any, may result from these subsidies . 
10  SCHEMES OF THE STATE  GOVERNMENT OF MAHAR ASHTRA  
1. Title of Subsidy  
Package Scheme of Incentives – 2013 (PSI – 2013) . 
2. Period of Notification  
2018-19. 
3. Policy Objective and/or Purpose of the Subsidy  
The broad objectives of scheme are as below:  
a. Encourage the dispersal of industries to lesser developed areas of the State so as to 
achieve higher and sustainable economic growth.  
b. Emphasise on balanced regional development and employment generation through 
greater private and public investment in industrial development.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  4. Background and authority for the Subsidy  
The Package Scheme of Incentives, introduced in 1964, has been amended from time to time. The 
Package Scheme of Incentives -2007 was in operati on from 1 April 2007 to 31 March 2013. Same 
was discontinued from 31 March 2013 and new Scheme, viz. Package  Scheme of Incentives -2013 
under Maharashtra Industrial Policy -2013 has been launched from 1 April 2013. The implementing 
authority for scheme is In dustries, Energy and Labour Department, State Government of 
Maharashtra. Details of the scheme can be accessed under "Investor's guide " at 
http://di.maharashtra.gov.in . 
5. Form of the Subsidy (i.e. grant tax, loan,  concession)  
Exemption/Refund.  
6. To whom and how the Subsidy is provided  
The following categories of eligible industrial units in the Private Sector, State Public Sector, 
Co-operative Sector, Central Public Sector /Joint Sector are eligible for incentives und er the Package 
Incentive Scheme -2013:  
a. Industries listed in the First Schedule of the Industries (Development and Regulation) Act , 
1951, as amended from time to time.  
b. Manufacturing Enterprises as defined in the Micro, Small and Medium Enterprises 
Developmen t Act, 2006.  
c. Information Technology (IT) units registered with Directorate of Industries or Maharashtra 
Industrial Development Corporation or Development Commissioner (SEEPZ) or STPI in the 
state.  
d. Cold Storages.  
e. Biotechnology (BT) units as specified by Gov ernment from time to time, which are outside 
the purview of any registering authority mentioned above.  
f. Mechanized Food /Agro processing industries in the following sectors:  
• Dairy, Fruit & Vegetable processing . 
• Grain processing . 
• Fish processing . 
• Consumer foods including packaged food s. 
• Non - alcoholic beverages from fruits and vegetables.  
The package of incentives consists of:  
a. Fiscal incentives for MSMEs/Large Scale Industries: The quantum of financial incentives is 
linked to fixed capital investment and incentives are for a period of 7 -10 years.  
b. Industrial Promotional Subsidy (IPS) for MSMEs and Large Scale Industries: The subsidy 
is linked to taxes paid by industrial units and the quantum of subsidy vary depending upon 
catego ry of area where MSME/Large Scale Industry is set up.  
c. Interest Subsidy: All new eligible Micro, Small & Medium Manufacturing Enterprises in 
areas other than Group A (as defined in scheme) are eligible for interest subsidy. The 
interest subsidy is payable o nly on the interest actually paid to the Banks and Public 
Financial Institutions on the term loan for acquisition of fixed capital assets. The quantum 
of interest subsidy payable every year will not exceed the bills paid for electricity consumed 
during the  relevant year.  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  d. Exemption from Electricity Duty: Eligible new units (as defined in scheme) are exempted 
from payment of electricity duty during the eligibility period not exceeding 15 years. In 
Group A & B area (as defined in scheme), 100% Export Oriented Units (EOUs), Information 
Technology (IT) and Bio -Technology (BT) units are also be exempted from payment of 
Electricity Duty for a period of 7 years.  
e. Waiver of Stamp Duty: New as well as units undertaking Expansion /Diversification are 
exempted from payme nt of stamp duty in areas defined under the scheme. However, in A 
and B areas (as defined in scheme), Stamp Duty exemption available for BT & IT 
manufacturing units in Public Parks, BT & IT manufacturing units in private parks and for 
Mega Project, is 100% , 75% & 50%, respectively.  
f. Power Tariff Subsidy: Eligible New Micro, small and Medium Enterprises (MSME), except 
the units in Group A areas, are eligible for power tariff subsidy . 
g. Subsidy for technology upgradation, quality certification, clean production measures, 
patent registration, conservation/recycling of water is also provided to MSMEs/Large Scale 
Industries.  
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Release of funds in 2 018-19 are as below:  
Financial Year  2018-19 
Expenditure (In Rupees million)  30,350 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
The PSI -2013, as may be amended by the Government from time to time, shall remain in operation 
from 1st April 2013 till new scheme comes into force.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to estimate what trade effects, if any, may result from thi s subsidy.  
11  SCHEMES OF STATE GOV ERNMENT OF ODISHA  
1. Title of subsidy  
Value Added Tax scheme available under Industrial Policy, 2007 and 2015.  
2. Period of Notification  
2011-12 to 2018 -19. 
3. Policy objective and/or purpose of Subsidy  
To encourage the Industrialization in the State.  
4. Background and authority of the subsidy  
The background of the scheme is given at No. 4 (Policy Objective) above. The implementing 
authority for the scheme is Department of Industries, State Government of Odisha.  
5. Form of the subsidy ( i.e. grant tax, loan, concession)  
Reimbursement.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  6. To whom and how subsidy is provided  
Under industrial Policy 2OO7:  
a. New industrial units in Priority Sector are eligible for reimbursement of 75% of VAT paid, 
for a period of 5 years from the date of  starting commercial production limited to 100% 
of fixed capital investment.  
b. New industrial units in Thrust Sector shall be eligible for reimbursement of 75% of VAT 
paid, for a period of 10 years from the date of starting commercial production limited to 
200% of fixed Capital investment . 
Under industrial Policy 2015:  
a. New industrial units in Priority Sector shall be eligible for reimbursement of 100% of net 
VAT, paid for a period of seven years from the date of commencement of production limited 
to 200% of cost of Plant and Machinery.  
b. New Pioneer Units under each Priority Sector shall be eligible for reimbursement of 100% 
of net VAT paid for a period of nine (9) years from the date of commencement of 
production, limited to 200% of the cost of plan t & machinery in a tapered manner (as 
indicated above).  
c. Anchor Tenant in each industrial park shall be eligible for reimbursement of 100% of net 
VAT paid for a period of nine years from the date of commencement of production, limited 
to 200% of the cost of  plant & machinery.  
7. Subsidy per unit or in cases where there is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Year-wise VAT reimbursement release of funds from 2007 -08 to 2018 -19 are indicated below.  
Financial Year  Total Exp enditure  (in Rupees million)  
2011-12 251.84  
2012-13 325.00  
2013-14 120.10  
2014-15 155.96  
2015-16 572.90  
2016-17 262.70  
2017-18 361.27  
2018-19 3,342.87  
8. Duration of subsidy and or any other limits attached to it, including date of 
inception/comments  
The Scheme is applicable from financial year 2007 -08 and is still continuing under the provision 
made in IPR 2007 and IPR 2015.  
9. Statistical date permitting an assessment of the trade effect of the subsidy  
It has not been possible to esti mate trade effects, if any, that may result from this subsidy.  
12  SCHEMES OF THE STATE  GOVERNMENT OF PUNJA B 
1. Title of Subsidy  
Incentives under Textile Policy, 2006.  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  2. Period covered by the notification  
2018-19. 
3. Policy objective and/or purpose of subsidy  
The main objectives of this Policy are:  
a. To facilitate the textile industry of the State to attain and sustain a premium global 
standard.  
b. To facilitate cluster formation so as to promote collective efficiency of textile units by 
improving their business process es and support system . 
c. To provide special benefits to textile industry.  
d. To boost textile industry in the State and create employment opportunities in large 
numbers.  
4. Background and authority of the subsidy  
The background has been stated at No. 3 (Policy Objectives) above. The implementation authority 
for the schemes is Department of Industries & Commerce, State Government of Punjab.  
5. Form of the subsidy (i.e. grant, tax, loan, concession)  
Concessions/exemptions.  
6. To whom and how subsidy is provided and how determined  
The incentives are provided to textile sector as per detail below:  
a. Technology Upgradation: Under the Technology Upgradation Fund Scheme (TUFS) of 
Government of India, state government facilitates maximum investment for spinning, 
weaving and processing industries which are capital intensive and have high employment 
generation potential. Capital ceiling under the TUFS for small scale textile industry has 
also been increased.  
b. Cluster Development: Development of integrated textile parks with all requisite facilities 
at one place to give a major boost to textile industry in the state.  
c. 100% waiver of electricity duty for a period of 7 years for mega textile projects.  
d. No departmental charges for use of canal water for textile mega projects.  
e. Full acquisition of land for textile mega project, if requested by the company.  
f. Liberalised labour laws.  
7. Subsidy per unit or in case where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
The incentives provided are mentione d in No. 6 above. No specific amount has been budgeted for 
the incentives. 10 cases have been sanctioned the incentive of 100% Electricity Duty exemption for 
seven years, under this policy. This being an exemption, quantum cannot be determined.  G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  8. Duration of  subsidy and or any other limits attached to it, including date of inception/ 
commencement  
The Textile Policy 2006 was notified on 11 July 2006 and incentives under the policy are applicable 
from the date of notification. The policy is still continuing.  
9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been  possible to estimate the trade effects, if any, that may result from this subsidy.  
13  SCHEMES OF THE STATE  GOVERNMENT OF TRIPU RA 
1. Title of Subsidy  
Industrial Investment Promotion Incentive (Amendment) Scheme, 2017.  
2. Period of Notification  
2018-19. 
3. Policy objec tive and/or purpose of subsidy  
The broad objectives of the scheme are:  
a. Optimal utilization of natural and physical resources.  
b. Generation of better employment and self -employment opportunities.  
c. To encourage and attract the entrepreneurs in the priority (Thr ust) sectors in the State, 
special emphasis are being given by providing suitable assistance.  
4. Background and Authority for the Subsidy  
Background for the scheme is stated at No. 3 (Policy objectives) above. The Implementing Authority 
for scheme is the Dire ctorate of Industries and Commerce, Department of Industries and Commerce, 
Government of Tripura.  
5. Form of Subsidy (i.e. grant, loan, tax concession, etc.)  
Subsidy is provided in the form of Grant/ Reimbursement/ Exemption.  
6. To whom and how subsidy is provid ed and how determined  
The Scheme is applicable to all Large, Micro, Small and Medium Enterprises which commence their 
commercial production in the State of Tripura on or after the first day of April 2017, but before or 
on thirty -first day of March 2022. Th e scheme has following components:  
a. Capital Investment subsidy at 30% on fixed capital investment subject to a ceiling of 
Rs. 6 million per Enterprise. For Thrust Sector industries, 40% with ceiling of Rs. 7 million 
per enterprise. Wherever an enterprise is  eligible for Capital Investment Subsidy under 
North East Industrial Development Scheme (NEIDS), 2017, the enterprise shall have to 
mandatorily apply for the subsidy under NEIDS, 2017. The amount of subsidy to be 
provided under the clause shall stand reduc ed to the extent of subsidy entitlement under 
NEIDS, 2017 . 
b. Industrial Promotion Subsidy (reimbursement of GST) subject to an overall ceiling of 
Rupees 6 million per annum per enterprise. In case of Thrust Sector industries, the annual 
upper ceiling of paym ent of Industrial Promotion subsidy shall be Rs. 100 million per G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  enterprise. The aggregate limit of entitlement of an enterprise for 5 years shall not exceed 
100% value of investment made in plant and machinery.  
c. 25% Reimbursement of Power Charge: maximum o f Rs 1.2 million per annum per 
enterprise. In case of Thrust Sector industries, the maximum amount of reimbursement 
of power charges shall be Rs. 2.0 million per annum per enterprise.  
d. 4% Reimbursement of Interest on Term loans subject to maximum of Rs. 0.3 million per 
annum per enterprise. In case of Thrust Sector Industries, Partial Reimbursement of 
Interest paid on Term Loan shall be provided at 5% with an upper ceiling to Rs. 1 milli on 
per annum per enterprise.  
e. 100% Exemption from the payment of Earnest Money and Security Deposits on tenders 
floated by the State Govt./Departments/Agencies.  
f. Employment Cost subsidy under Thrust Sector towards Employees Provident Fund and 
Employees State  Insurance contribution on employment of 20 or more people skilled and 
semi-skilled workers who are domicile of the State.  
g. Subsidy for participation in fares and exhibition (Thrust sector only) at 50% of actual 
expenditure for one person and transportation  cost of goods for display/sale with 
maximum ceiling of Rs. 50,000/ - per annum.  
h. In addition, the service activities, namely, Hotel Business, Tourism Promoting Activities 
(Water -Sports, Rope Ways, Adventure and Leisure Sports) with a minimum investment of 
Rs. 30 million (excluding  land) and Hospitals/Nursing Homes with a minimum capacity of 
50 beds shall mean Thrust Sector Industries.  
7. Subsidy per unit or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Release of funds in 2018-19 are as below:  
Financial Year  2018-19 
Expenditure (in Rupees million)  38.00  
8. Duration of the subsidy and/ or any other time limits attached to it including the date of 
inception  and commencement  
The subsidy is available for 5 years to all Large, Micro, Small and Medium Enterprises which 
commence commercial production in the State of Tripura on or after the 1 April 2017 but before or 
on 31 March 2022.  
9. Statistical data permitting an assessment of the trade effect of the subsidy  
It has not been possible to estimate the trade effects, if any, that may result from this subsidy.  
14   SCHEMES OF THE STAT E GOVERNMENT OF UTTA RAKHAND  
1. Title of Subsidy  
Incentives under Micro, Small and Medium Enterprises (MSME Policy) -2015. 
2. Period of Notificati on 
2018-19. G/SCM/N/343/IND/Suppl.1 • G/SCM/N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  3. Policy Objective and/or Purpose of the Subsidy  
Government of the State of Uttarakhand launched "MSME Policy -2015" for promoting investments 
in the MSME sector. The policy aims at utilizing local resources, generating employment 
opportunities es pecially in hilly regions, promoting self -employment, efficient use of water resources, 
treatment and recycling of wastewater, promoting non -conventional sources of energy, green 
technologies etc.  
4. Background and authority for the Subsidy  
The background of the scheme has been given in No. 3 (Objective) above. The implementing 
authority for the scheme is Department of Micro, Small and Medium Enterprises, Government of 
State of Uttarakhand.  
5. Form of the Subsidy  
Grant/ Exemption/ Reimbursement/Concessions, as applicable.  
6. To whom and how the Subsidy is provided  
Subsidy is provided to industry by way of Investment Promotion Assistance, Interest Subsidy, 
Reimbursement of Value Added Tax, concessions on Stamp Duty, Reimbursement of Ele ctricity Bills, 
Transport Subsidy etc. The amount of subsidy varies depending upon categorisation of areas viz, 
A,B,C and D, details of which can be seen at https://doiuk.org/mysite/policies  and 
https://investuttarakhand.com/site/Policies . 
Incentive packages under the scheme are:  
a. Investment Promotion Assistance (Capital Subsidy) – Maximum up to Rs. 4 million.  
b. Interest Subsidy – Maximum up t o Rs 0.8 million per year per unit.  
c. Reimbursement of SGST - 100% for 5 years (In category - A, B, B+ districts only for 
manufacturing Units).  
d. Concession on Stamp Duty - maximum up to 100%.  
e. Reimbursement of Electricity Bills – up to 100% for first 5 years and  up to maximum of 
75% thereafter.  
f. Special State Transport Subsidy - up to maximum of 7% of Annual Turnover or Actual 
Expenditure (whichever is less) on transport of raw material/ finished products, whichever 
is less.  
7. Subsidy per unit, or in cases where this  is not possible, the total amount or the annual amount 
budgeted for that subsidy  
Though there is no budgeted allocation for various incentive schemes under the  policy  the amount 
released under the scheme in 2018 -19 is as below:  
Financial Year  2018-19 
Expenditure (in Rupees million)  202.2  
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
Duration of the scheme is from 1st January 2015 to 31st March 2023. However, fiscal Incentives 
and other b enefits under the policy shall be available to the eligible enterprises from the 
commencement of the production up to a maximum of 5 years.  G/SCM/N/343/IND/Suppl.1 • G/SCM /N/315/IND/Suppl.3 • G/SCM/N/284/IND/Suppl.5 • 
G/SCM/N/253/IND/Suppl.4  
 
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  9. Statistical data permitting an assessment of the trade effects of the subsidy  
It has not been possible to estimate t he trade effects, if any, that may result from this subsidy.  
__________