The Assam government announced the Industrial and Investment Policy of Assam, 2014, a new industrial policy that would come into effect in the state from March 1. The new policy would be in place for a period of five years and has identified promotion of micro, small and medium enterprise (MSME) sector as its priority area and would lay down various incentives for new business units set up by private sector, co-operative, partnership, self-help groups, trust, NGOs, as well as state government.
The new policy also provides value-added tax (VAT) exemption for 15 years to industries set up on or after March 1, 2014. For the first and the second year, there would be 100 per cent VAT exemption, followed by 80 per cent in the third and fourth year and 50 per cent till 15th year. Additional VAT exemption proposed for units set up in designated industrial parks such as Food Park, Bamboo Park, Plastic Park, Tea Park, etc. Entry tax has also been exempted for all eligible units including state public sector units (PSUs) on procurement of plant and machinery from other states.
Overall aim of the Assam Industrial policy is to increase Gross State Domestic Product by way of facilitating growth of various economic activities including Manufacturing and Service sector.
Goals of Industrial and Investment Policy of Assam 2014
- To create income and employment especially in the rural areas of Assam.
- To encourage sustainable Investment in the Micro, Small and Medium Enterprises (MSME) sector in the State.
- To build a vast pool of skilled personnel.
- To give special thrust on economic activities based on local resources.
Features of Assam Industrial and Investment Policy:
- 30% subsidy (max Rs. 10 lakh) for new Micro units on the amount spent on workshop shed, plant & machinery, cost of land, installation & internal electrification.
- 100% VAT exemption for 15 years for new micro units.
- For other units, VAT exemption rate: 100% 1st & 2nd year, 80% 3rd & 4th year; 50% 5th to 15th years.
- VAT Exemption for selected industrial parks (such as Plastic Park, Bamboo Park, Food Park, Tea park etc) developed by or in-collaboration with Government.
- No entry tax on plant & machinery brought from other States for business units.
- 50% Luxury tax exemption for 10 years for Hotels.
- 75% subsidy on fee payable for Quality Certification or Technical Knowhow.
- Proposal of Artisan Identity Card (AIC) to provide Bank loan upto Rs.2.00 lakh for artisans. Govt will reimburse 50% of the interest for upto 5 years.
- Proposed initiatives for Geographical Indication (GI) registration, registration of Trade Marks etc.
- Project with investment of a minimum of Rs.100 Cr or generating a minimum of 1000 regular employment shall be given Mega Project Status.
Priorities of the Policy:
Industrial infrastructure development (setting up of new Industrial Estate /Area/ Parks, etc), thrust on development of Micro & Small Industries, possible support for setting up of medium and Large Industries, support for growth of service sector, speedy approval and clearances and removing the consent of Pollution Control Board step for setting up Green and Non-Polluting industries.