Incentives offered under the Package Scheme of Incentives 2001:

 

1 Special Capital Incentives (SCI) for SSI Units-

    1. A New SSI Unit, or other New Unit specified at para 1.1 whose investment is within the ceiling prescribed for SSI, set up on or after the 1st April, 2001 will be entitled to Special Capital Incentive at the rates indicated below: -

AREA

(Group)

Quantum as % of Fixed Capital Investment

Ceiling

(Rs. lakhs)

C

20

10

D

30

20

D+

35

25

No Industry District

40

35

  1. Interest subsidy to new textiles, hosiery and knitwear industrial units under SSI sector (in addition to SCI):

    1. New textile, readymade garments, hosiery and knitwear Units in the SSI Sector set up on or after 1st April, 2001 will be entitled to subsidy on the interest actually paid by the Unit to the financial institutions / banks on the term loan/s for creating fixed capital assets which are held to be eligible by the Implementing Agency as per the project scheme approved by the financial institutions / banks.

    2. The amount of interest subsidy will be equal to the amount of interest payable by the unit at the rate of 5% per annum, out of the interest actually paid by the unit. The interest subsidy will not be applicable on the interest paid on defaulted instalments.

    3. The maximum period of eligibility, and the ceiling limit of interest subsidy applicable during the period of eligibility, are as follows:

Taluka/Area classification

Monetary ceiling

(Rs. in lakhs)

Maximum period of eligibility (in years)

C

10

4

D

20

5

D+

25

6

No Industry District

35

7

3. Refund of Octroi / Entry Tax in lieu of Octroi-

    1. An Eligible Unit, after it goes into commercial production, will be entitled to refund of Octroi Duty / Entry Tax (in lieu of Octroi), account-based cess or other levy charged instead of or in lieu of octroi payable and paid to the local authority on import of all the items required by the Eligible Unit. This incentive will be admissible in the form of a grant restricted to 100% of the admissible Fixed Capital Investment of the Eligible Unit for a period of 5/7/9/12 years respectively in the B/C/D/D+ areas. In respect of No Industry District areas, however, the period will be 15 years.

    2. The period of eligibility for refund of the Octroi / Entry Tax (in lieu of Octroi), account-based cess or other levy charged instead of or in lieu of octroi shall be from the date of commencement of commercial production. However, in respect of 100% EOU or an Agro-industry Unit, the period shall commence from the date of first import.

    3. The Incentive will also be available to new Electronic Industrial Units holding IEM / LOI / SSI registration that will be located in MMR (excluding Greater Mumbai, Mira-Bhayander and Thane Municipal Corporation areas) and PMR for 5 Years.

4. Exemption of Electricity Duty-

An Eligible New Unit in C, D, and D+ areas and No-Industry District(s) will be exempted from payment of Electricity Duty for a period of 15 years. In other parts of the State, 100% Export Oriented Units (EOUs), Information Technology (IT) and Bio-Technology (BT) units, and industries setting up in Special Economic Zones (SEZs) and in Electronic Hardware Technology Parks will be exempted from payment of Electricity Duty for a period of 10 years.