Mizoram Bamboo Development Agency

Incentive Scheme, 2000:

From the date the New Industrial Policy of Mizoram, 2000 will come into force, a new package of incentives (herein after referred to as Incentive Scheme of 2000) shall come in- to force and shall remain in operation till such time the State Govt., gives due notice towards discontinuance of its operation or till amendments are made to the Scheme. The commitments already made under this Scheme shall not be adversely affected by any such discontinuation or amendment.

Eligibility :

23:1. All new industrial units in the private, State public Sector and in Joint Sector set up on or after 24.12.1997 will be eligible under Incentives Scheme of 2000

23:2. Existing industrial units undertaking expansion, modernization or diversification made after 24.12.1997 shall be eligible for the incentive for the expanded portion only under this Scheme..

23:3. To be eligible for this incentives, the Industrial units should be located and have their registered Offices in the State of Mizoram.

23:4. Those existing industrial units which have already availed incentives similar in nature under the Incentives Scheme of 1989 and thereafter shall not be eligible under Incentives Scheme of 2000.

23:5. Special preference shall be given in the matter of incentives available from State and Centre to those units located in Growth Centre, EPIP Industrial Estates and such other areas identified and declared as such by the State Government.

New Units: An industrial units which has undertaken one or more ‘effective steps’ on or after 01.04.2000 would be considered as a new unit for the purpose of Incentive Scheme of 2000.

Explanation : Effective Steps : Effective steps means one or more of the following steps:

60 p.c. or more of the capital issued for the industrial unit has paid up. Substantial part of the factory building has been constructed. A firm order has been placed for substantial part of the plant and machinery required for the industrial unit.

25. Existing Units: Any industrial unit which is/was in commercial production at any time prior to 24.1.1997 would be considered as an existing unit for the purpose of incentive scheme of 2000.

26. Continuance of Existing Incentives: The existing incentives offered under the New Industrial Policy of Mizoram, 2000 shall not be applicable to units which were sanctioned incentives under the rules of incentives/subsidies under the Industrial Policy of Mizoram State, 1989. All such units will continue to be governed by the provisions of sanctions already issued under the relevant rules of the Industrial Policy of 1989. However, the units which were set up prior to the commencement of this Scheme, but have not so far availed any of the benefits under afore-mentioned rules may chose to exercise one-time option in favour of either of the Schemes.

The incentives offered under the Rules for the grant of incentives/subsidies under the Industrial Policy of Mizoram State 1989 are as follows and all new units set up on or after 24.12.1997 shall be eligible to these incentives:

26:1:1. Subsidies on the cost of Project Report (Appendix-A)

26:1:2. Land subsidy (Appendix-B)

26:1:3. Factory rent subsidy (Appendix-C)

26:1:4. Manpower development subsidy (Appendix-D)

26:1:5. Interest subsidy (Appendix-E)

26:1:6. Power subsidy (Appendix-F)

26:1:7. Subsidy on Power Line (Appendix-G)

26:1:8. Subsidy on Power Generating set (Appendix-H)

26:1:9. State Transport subsidy on Plant and Machinery. - (Appendix-I)

26:1:10. Existing State Rules for grant of incentives/subsidies also will be reviewed by the Government to incorporate suitable amendments conforming with the New Industrial Policy of Mizoram, 2000.

27. New incentives: In addition to the existing incentives, the government of Mizoram offers further incentives under the New Industrial Policy of Mizoram 2000 as follows

27:1. tate Capital Investment Subsidy:An investment subsidy on the total investment made in plant and machinery shall be provided on a graded scale to the new industrial units. It will be available to both new units as well as to existing units carrying out expansion, diversification and modernisation activities

The graded subsidy will be as under :

Types of Industry	Subsidy eligible in general	Subsidy eligible unit set up in the thrust area
i) Artisan and tiny scale units	15% of total capital investment in plant and machinery	20% of total investment in plant and machinery
ii) Small scale capital units	10% of total capital investment in plant & machinery subject to a maximum of Rs. 5.00 lakhs	15% of total investment in plant & machinery subject to a maximum Rs.7.00 lakhs
iii) Medium scale units	5% on total capital investment in plant & machinery subject to a maximum of Rs.10.00 lakhs	10% of total capital in plant & Machinery subject to a maximum of Rs.15.00 lakhs

27:2. Concession on State and Central sales tax : State Sales Taxes shall be exempted for a period of 7 year from the date of commencement of actual commercial production. However, for the units set up in the thrust area, the exemption period will be 10 years.

Exemption of Central Sales Taxes and Excise duties will be governed by various Notifications/Orders issued by Government of India in this regards.

27:3. Price preference : Price preference well be given for the products of local units as per the provision of Mizoram Preferential Stores Purchase Rules 1994. Broadening and depending of the coverage of the Rules will be carried out 27:4 International Standard Organization/Bureau of Indian Standard certification: The State government shall encourage the small Industries to obtain Bureau of Indian Standard (BIS))/International Standard Organization(ISO) Certificate for their product to enable them to compete at the State and National levels. For this purpose, the State Government shall re-imburse 100% of the expenditure incurred on registration fee, testing fee etc., and purchase of testing equipment subject to actuals up to the maximum limit ofRs.50,000/-.

This limit shall be Rs.1,00,000/- for units set up in the thrust areas.

27:5. Subsidy on registration fee of promotion council, commodity board and chamber of commerce: The amount spent by an industrial unit in obtaining a registration with recognised promotion council, commodity board, chamber of commerce etc., shall be re-imbursement to the unit subject to a limit of Rs.20,000/- or the actual registration fee which ever is less.

27:6. Incentives for export oriented units:

27:6:1. For 100% Export Oriented Units(EOU)

An additional 5% capital investment subsidy for investment on plant and machinery subject to a maximum of Rs.5.00 lakhs will be made available to 100% EOUs.

27:6:2. Other units with an export commitment of less than100% of the total turn over.

An additional 2% of capital investment subsidy for investment of plant and machinery subject to a maximum of Rs.2.00 lakhs will be make available to units of less than 100% export commitment.

28. State-level Review Committee:This Policy statement shall be reviewed and recommendations made annually for adjustments and for providing additional policy support to the industry by a State-level Review Committee to be headed by Secretary, Industries Department, Government of Mizoram with Members drawn from various Departments involved in Industrial development of Mizoram. The State Pollution Control Board, Environment and Forest Department, Geology and Mining Wing of Industries Department and Mizoram Industries Association will also be represented in the Committee.