G/SCM/Q2/IND/58  
 
1 May 2023 
(23-3057) Page: 1/4 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
REPLIES TO QUESTIONS1 POSED BY THE UNITED STATES REGARDING  
THE NEW AND FULL NOTIFICATION OF INDIA2 
The following communication, dated and received on 1 May 2023, is being circulated at the request 
of the delegation of India. 
 
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Question 1 – Pertaining to the Shipbuilding Financial Assistance Policy  
How is the grant to shipyards structured? Is it based on the number of ships 
brought into operation? W hat types of ships are eligible for the grant? Does this 
grant apply to the production of fishing vessels?  
Reply : 
 
The grant of financial assistance is structured based on Schedule -IV of the 'Guideline for 
implementation of the Shipbuilding Financial Assistance Policy -2016. All types of vessels as defined 
in Clause 2 (r) of the 'Guideline for implementation of the Ship building Financial Assistance 
Policy -2016 are eligible under the scheme.  
 
Question 2 – Scheme for Promotion of Manufacturing of Electronic Components and 
Semiconductor (Specs)  
A. Please explain exactly what types of "financial assistance" are provided under this 
program to the semiconductor industry.  
Reply : 
 
Financial assistance, in the form of an incentive, of not more than 25% on capital expenditure will 
be given under the Scheme.  
 
B. Please provide the criteria for each downstream good to qualify for the ince ntive. 
Must intermediate goods or components be produced in India?  
Reply : 
 
The details of the financial assistance available and the list of goods eligible for incentives under the 
scheme are given in the scheme document. For further details please refer to 
https://www.meity.gov.in/esdm/SPECS  
 
 
1 G/SCM/Q2/IND/56.  
2 G/SCM/N/372/IND . G/SCM/Q2/IND/58  
 
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  Question 3 – Schemes of the State Government of Andhra Pradesh - Incentives Under 
Industrial Development Policy 2015 -20 and 2020 -23 
A. Can you please explain the very large increase in expenditure on this program from 
2019 -20 to 2020 -2021?  
Reply : 
 
As per policy, District Industry and Enterprises Promotion Centre (DIEPC) can sanction the industrial 
incentives for eligible MSME Industries time to time and also SLC sanction the Industrial incentives 
for eligible large and mega industries time to time. But these funds are released as per the seriatim 
of sanctions and also availability of funds. Accordingly, during 2019 -2020, the State Government 
has released only Rs. 46 crores to large and Mega industries but not released any funds to 
MSME  units.  
 
In 20 20-21, Government released Rs. 900.73 Crores  as pending industrial incentives for MSMEs. 
Government also released an amount of Rs. 97.72 Crores to Large and Mega industries.  
 
B. What proportion of the funds allocated in this policy go to "mega units?"  
Reply : 
 
May see reply to Part A.  
 
Question 4 – Schemes of the State Government of Gujarat - Scheme for Incentive to 
Industries  
A. What manufacturing industries have received funding under this incentive 
scheme?  
Reply : 
 
Under this scheme, Metal & Metal Alloys , Ceramic, Chemical, Paper & Paper Products, Auto & Auto 
Components, Textile and Electronic Sectors have received funding for the FY 2019 –20 and 2020 -21. 
 
B. What is the applicable VAT/SGST that is being reimbursed under this program?  
Reply : 
 
The VAT/SGST tha t is being reimbursed under this program is as per the para 8.1 of the 
Government  Resolution No.INC -102015 -645918 -I dated 25/07/2016.  
 
C. Did the scheme expire on 24 July 2021 or has it been extended?  
Reply : 
 
The scheme has expired. The last date to submit th e application was 24/07/2021. However, 
applications received before the last date and who have commenced the commercial production 
before 24/07/2022 would be eligible to avail the assistance.  
 
Question 5 – Schemes of the State Government of Gujarat - Schem e for Assistance of 
Capital Investment Subsidy & Assistance for Interest Subsidy  
A. Please explain which industries and sectors have received the investment and/or 
interest subsidy during the reporting period.  
Reply : 
 
Following Sector and Industries have received the investment and/or interest subsidy during the 
reporting period:  
 G/SCM/Q2/IND/58  
 
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  Automobile Sector, Basic Metal Production Sector, Chemical Industries, Electronics Sector, 
Engineering Sector, Food processing and Agro Processing, Footwear Secto r, Forestry, Wood, Pulp 
and Paper Sector, Glass Industries, Health Industries, Gems and Jewellery Sector, Machinery 
Manufacturer, Mechanical And Electrical Engineering Sector, Mining Sector, Pharma Sector, Plastic 
Industries ,Rubber Industries, Textile Sec tor, Other.  
 
Question 6 – Schemes of the State Government of Gujarat - Scheme for Assistance for 
Industrial Infrastructure  
A. Please explain exactly what type of financial assistance is provided to the eligible 
GIDCs/Non -GIDC estates/ private estates/ industr ial areas under this program.  
Reply : 
 
Under the scheme, assistance towards development of industrial infrastructure will cover up -to 80% 
of the eligible project cost or Rs. 25 crores per project, whichever is less.  
 
Activities eligible to receive assistan ce as per the scheme are:  
 
Approach road from industrial estate/ area to District road/ State Highway/ National Highway/ Port, 
Over bridge on road/ railway connecting industrial area, upgradation of existing roads / widening of 
roads, construction of bypa ss roads, network facilities etc.  
 
Gujarat Industrial Policy 2020, Scheme for Assistance of Industrial Infrastructure, Government of 
Gujarat resolution no. GID -102020 -325953 -G dated 1 September 2020 available at 
https://www.nsws.gov.in . 
 
The details of financial assistance may be seen at https://ic.gujarat.gov.in//large -incentives  
 
Question 7 – Schemes of the State Government of Gujarat - Schemes for Financia l 
Assistance to Industrial Park  
A. Please explain exactly what type of financial assistance is provided under this 
program. Please also explain what criteria must be met by a company in order to 
locate within an industrial park.  
Reply : 
 
The details of financ ial assistance under the Gujarat State Scheme for Financial Assistance to 
Industrial Parks may be seen at https://ic.gujarat.gov.in/large -incentives  
 
Question 8 – Schemes of the State Government of Karnataka – Industrial Policy 
2020 --2025  
A. What industries are eligible for interest free loans on VAT payments and SGST 
payments?  
Reply : 
 
This schemes supports specified categories of underprivileged entrepreneurs through interest free 
loans.  
 
B. What sectors are prioritized under the Government of Karnataka's industrial 
policy?  
Reply : 
 
The policy has identified certain focus sectors that are Automobiles and Auto components, 
Pharmaceuticals and Medical Devices, Engineering and Machine tools, Knowledge based industries, 
Cement, Steel, Sugar, Logistics, Renewable Energy, Aerospace and Defence, Electric Vehicles, 
Healthcare and Wellness, Higher Education and Bio - Fuels.  G/SCM/Q2/IND/58  
 
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Question 9 - Schemes of the State Government of Kerala - Entrepreneur Support Scheme 
(Ess) 2012  
A. The notification states that the Government of Kerala launched ESS by merging 
and replacing the 9 schemes that existed earlier. The ESS intend to: (i) Provide 
support to Micro, Small, and Medium enterprises by providing " one-time support 
to entrepreneurs with due regard to special categories by optimal utilization of 
funds and giving more flexibility of operation while implementing the scheme". 
Please explain which sectors and industries have benefited from this program 
during the reporting period. Also, please explain what qualifies as "special 
categories".  
Reply : 
 
No study has been conducted in this regard to identify the sectors that have benefitted from the 
scheme during the reporting period as the criteria is objectiv e.  
 
Special categories under the Scheme are Women Entrepreneurs, Young Entrepreneurs (Age 
between  18 and 45), Scheduled Castes/ Scheduled Tribes Entrepreneurs, Non Resident Keralite 
Entrepreneurs, and enterprises in priority sectors such as, Rubber Based Industries, Agro Based and 
Food Processing Industries, Ready -made Garments, Industries Manufacturing Equipment and 
Machinery For Non -Conventional Energy Generation, Bio Technology Based Industries, Bio 
Degradable Plastic Industries, Plastic Waste Recycling  Industries, Bio Fertilizer Industries, 
Pharmaceutical Industries & Health Care Products Manufacturing Industries.  
 
Question 10 – Other Programs  
A. What is the status of the fishery programs previously notified?  
 
Reply : 
 
India notifies its fisheries subsidies separately and the status of the fisheries programmes previously 
notified can be found therein. India will soon notify the latest fisheries programme.  
 
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