Central Government Incentives

Name of subsidy

Eligibility

Amount Claimable

Central Capital Investment Incentive for access to credit (CCIIAC)

• Unless otherwise specified, all new industrial units in manufacturing sector and services sector including Biotechnology and Hydel Power Generation Units upto 10 MW located in North Eastern Region, will be eligible for incentives under the scheme.
• All eligible industrial units will be entitled to benefits under one or more components of the scheme, even if such units are getting benefits under other schemes of the Govt. of India.
• The total benefits from all components of the scheme put together shall be limited to the total investment in plant and machinery subject to a maximum limit of Rs.200 crores per unit.

• 1)    @ 30% of the investment in plant and machinery with upper limit of Rs.5 crores

Central Interest Incentive (CII)

• Unless otherwise specified, all new industrial units in manufacturing sector and services sector including Biotechnology and Hydel Power Generation Units upto 10 MW located in North Eastern Region, will be eligible for incentives under the scheme.
• All eligible industrial units will be entitled to benefits under one or more components of the scheme, even if such units are getting benefits under other schemes of the Govt. of India.
• The total benefits from all components of the scheme put together shall be limited to the total investment in plant and machinery subject to a maximum limit of Rs.200 crores per unit.

• 1)    An interest incentive @ 3% on working capital credit advanced by the Scheduled Banks or Central/State financial institutions for first 5 years from the date of commencement of commercialproduction/operation.The incentive will be so restricted as to ensure that subsidized interest rate is not below the Marginal Cost of funds-based Lending Rates (MCLR) of the lending institution.
• 2)    The working capital requirement of a unit shall be capped at @ 25% of their annual turnover.

Central Comprehensive Insurance Incentive (CCII)

• Unless otherwise specified, all new industrial units in manufacturing sector and services sector including Biotechnology and Hydel Power Generation Units upto 10 MW located in North Eastern Region, will be eligible for incentives under the scheme.
• All eligible industrial units will be entitled to benefits under one or more components of the scheme, even if such units are getting benefits under other schemes of the Govt. of India.
• The total benefits from all components of the scheme put together shall be limited to the total investment in plant and machinery subject to a maximum limit of Rs.200 crores per unit.

• 1)    Reimbursement of 100% insurance premium on insurance of building and Plant & Machinery for a maximum period of 5 years from the date of commencement of commercial production/operation.

Goods and Services Tax (GST) Reimbursement

• Unless otherwise specified, all new industrial units in manufacturing sector and services sector including Biotechnology and Hydel Power Generation Units upto 10 MW located in North Eastern Region, will be eligible for incentives under the scheme.
• All eligible industrial units will be entitled to benefits under one or more components of the scheme, even if such units are getting benefits under other schemes of the Govt. of India.
• The total benefits from all components of the scheme put together shall be limited to the total investment in plant and machinery subject to a maximum limit of Rs.200 crores per unit.

• 1)    Reimbursement of Goods and Services Tax (GST) paid on finished products manufactured in the North Eastern Region up to the extent of the central share of the CGST and IGST for a period of 5 years from the date of commencement of commercial production subject to the following condition
• GST reimbursement on finished goods is applicable only on the net GST paid, other than the amount of Tax paid by utilization of Input Tax credit under the Input Tax Credit Rules, 2017.

Income Tax (IT) Reimbursement

• Unless otherwise specified, all new industrial units in manufacturing sector and services sector including Biotechnology and Hydel Power Generation Units upto 10 MW located in North Eastern Region, will be eligible for incentives under the scheme.
• All eligible industrial units will be entitled to benefits under one or more components of the scheme, even if such units are getting benefits under other schemes of the Govt. of India.
• The total benefits from all components of the scheme put together shall be limited to the total investment in plant and machinery subject to a maximum limit of Rs.200 crores per unit.

• 1)    Reimbursement of central share of income tax for first 5 years, including the year of commencement of commercial production by the unit

Transport Incentive (TI)

• Unless otherwise specified, all new industrial units in manufacturing sector and services sector including Biotechnology and Hydel Power Generation Units upto 10 MW located in North Eastern Region, will be eligible for incentives under the scheme.
• All eligible industrial units will be entitled to benefits under one or more components of the scheme, even if such units are getting benefits under other schemes of the Govt. of India.
• The total benefits from all components of the scheme put together shall be limited to the total investment in plant and machinery subject to a maximum limit of Rs.200 crores per unit.

• 1)    All eligible new industrial units can avail incentive on transportation of only finished goods through Railways or The Railway Public Sector Undertakings, Inland Waterways or scheduled airline for a period of 5 years from the date of commencement of commercial production/operation, subject to production of actual receipts. The terms and conditions of Transport incentive through different modes are as follows:
• Up to 20% of the cost of transportation including the incentive currently provided by railways of the railway PSUs for movement of finished goods by rail from the railway station nearest to the location of industrial unit to the railway station nearest to the location of the buyer.
• 20% of the cost of transportation for finished goods for movement through Inland Waterways Authority of India from the port nearest to the location of industrial unit to the port nearest to the location of the buyer.
• 33% of cost of transportation of air freight by scheduled airlines and Non-scheduled Operator Permit (NSOP) holders approved by DGCA for perishable items/goods (as defined by IATA) from the airport nearest to the place of production to any airport within the country, nearest to the location of the buyer.

Employment Incentive (EI)

• Unless otherwise specified, all new industrial units in manufacturing sector and services sector including Biotechnology and Hydel Power Generation Units upto 10 MW located in North Eastern Region, will be eligible for incentives under the scheme.
• All eligible industrial units will be entitled to benefits under one or more components of the scheme, even if such units are getting benefits under other schemes of the Govt. of India.
• The total benefits from all components of the scheme put together shall be limited to the total investment in plant and machinery subject to a maximum limit of Rs.200 crores per unit.

• 1)    DPIIT shall be paying additional 3.67% of the employer’s contribution to Employees’ Provident Fund (EPF) in addition to Government bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in the Pradhan Mantri RojgarProtsahan Yojana (PMRPY)