GUWAHATI, July 24 - The Assam government has identified activities under the manufacturing and services sectors as thrust areas in its new industrial and investment policy which has liberal fiscal incentives for businesses. The Invest Assam Foundation, an agency created to attract investment in a structured manner, will act as a first reference point of any investor interested in the State and will provide hand-holding and facilitation to investors for setting up their businesses.
The policy provides for benefits, subject to fulfilment of certain conditions, of 100 per cent reimbursement of SGST paid for a period of 15 years, with limits of reimbursements pegged between 150 per cent to 250 per cent of the fixed capital depending on the category. Larger benefits have been provided for the micro sector and units located in industrial parks like Bamboo Park, Tea Park, Plastics Park, Food Park, etc., developed by the State and Central governments.
Units making an investment of not less than Rs 5 crore for generating power through green technology i.e. renewable sources of energy like solar plant which results in substantial reduction of fossil fuel use will be eligible for tax reimbursement.
Such renewable source of energy results in replacement of conventional source of energy by at least 40 per cent of regular consumption.
The other incentives in the policy includes power subsidy (Rs 2 per unit), generating set subsidy (50 per cent of the cost), stamp duty reimbursement (100 per cent), interest subsidy on working capital, financial assistance to MSME listed in stock exchange, assistance for environmental compliance (50 per cent on capital cost for setting up effluent treatment plant) and incentives to private sector infrastructure developers. The aggregate incentives from all these components will not exceed 100 per cent of the fixed capital investment.
The fee payable for technology transfer and quality certification will be provided subsidy to the extent of up to 75 per cent.
According to the policy, the State government may also provide special dispensation to units with a fixed capital investment of Rs 1,000 crore or units generating employment of minimum 2,000 people in regular employment.
To encourage employment of local youths in the industries, the State government will provide a one-time incentive of Rs 10,000 to the employer against each local youth employed. Units will also have to employ a minimum of 80 per cent people of Assam in the managerial cadre and 90 per cent locals in non-managerial cadre.
The five-year policy aids investment into thrust areas such as food processing, pharmaceuticals, plastics, bamboo, jute, sugar, rubber, IT-ITES, textiles, automobile, etc., in the manufacturing sector and hotels/resorts, river cruise and power generation through green technology in the service sectors.
