Section 2

Amendment status not verified — confirm the current text below against the official source.

However, in case of installation of Renewable Energy including Solar Power (net metering), for the purpose of exemption of Electricity Duty, a sum of total incremental increase/decrease in units consumed from PSPCL and units generated from Renewable Energy/Solar Power Plant together would be taken into consideration. (c) The Incentive of Property Tax shall be available on the additional covered Area above the existing covered of the unit (as certified by concerned MC) upto 100% of FCI. (d) The Incentive of Exemption from Mandi Fees/ RDF/other taxes shall on incremental increase in the purchase of quantity of raw material over and above the average Purchase of quantity of raw material for Preceding 3 years or average purchase of quantity of raw material of preceding 12 months from the date of start of expansion of eligible Product/activity whichever is higher (as certified by the concerned District Mandi Officer) upto 100% of FCI. 12.3. Freezing of Power Tariff for five years 12.3.1 The State has introduced two-part electricity tariff i.e. fixed and variable tariff and shall provide power at a variable tariff of Rs. 5.50 /- per KVAH for five years with an annual increase of 3%. 12.3.2 There shall be no increase in the existing fixed electricity tariff. 12.3.3 The variable electricity tariff will be further reduced during non-peak night hours. 12.3.4 This variable tariff is exclusive of any duties or cess that may exist or may be imposed. 62 12.3.5 This tariff shall be applicable to all manufacturing industries in the State and IT & ITES industries in the Approved Industrial Parks. It shall also be applicable to the following projects dully registered with the Department of tourism: - Amusement parks/adventure Parks developed on minimum area of 50 acres. 12.4. Framework for Fiscal Incentives and other support measures The State has devised following framework for providing various fiscal incentives and other support measures to the manufacturing and service industries: (i) Categorization of units as Startup, MSME, Large, Anchor units, Mega Projects and Ultra mega Projects. (ii) Identification of thrust sectors (iii) Fiscal incentives as per categorization of units and thrust sectors (iv) Special incentives for early bird units in the new industrial parks approved by the State or Central Government (v) Support for Infrastructure Schemes (vi) Special incentives for Boarder Zone 12.5. Categorization of units in Startup, MSME and Large units The State has categorised manufacturing and service industries into various categories to provide different level of support. Various categories have been defined in the following table: SN Category Definition 63 1 Startup Units All units as per the definition of DPIIT, Government of India as amended from time to time. As per the current definition,  An entity incorporated or registered in India and must be Private Limited Company (as defined in the Company Act, 2013) or a Partnership Firm (registered under Section 59 of the Partnership Act, 1932) or a Limited Liability Partnership (under the Limited Liability Partnership Act, 2008).  Registered/incorporated not prior to Ten years.  With annual turnover not exceeding INR 100 crore in any preceding financial year, and working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation; provided that such entity is not formed by splitting up, or reconstruction, of a business already in existence.  Startup must be incubated or have operation in the state of Punjab. 2 MSME Units All manufacturing and service industry units as defined by Ministry of MSME, Government of India from time to time. However, for the purposes of fiscal incentives, the service enterprises shall be limited to the list given below at serial no. (4). 3 Large All manufacturing and service industry units not falling within the definition of MSME as defined by Ministry of MSME, Government of India from time to time. However, for the purposes of fiscal incentives, the service enterprises shall be limited to the list given below at serial no. (4). 64 4 Service Enterprises under MSME or Large category eligible for Fiscal Incentives i. IT and ITES ii. Life Sciences iii. Skill Development Centres, Incubation Centres, Accelerators iv. Healthcare v. Tourism & Hospitality vi. Media and Entertainment vii. Logistics viii. Maintenance, Repair and overhaul (MRO) in the Aviation & Defence Sector ix. Industrial R&D labs, Industrial Testing Labs x. Engineering and Design Services, xi. Equipment Rental and Leasing (construction and industry related) xii. Equipment Maintenance and Repair xiii. Environment services (Sewage/ refuse disposal) xiv. Common Utility services like steam, air, water & STP xv. Printing presses offset printing press, Flexi/Vinyl Printing, Flexo printing xvi. Design Studio with investment more than 50 lakh on Machinery& Equipment xvii. Auto servicing and /or repairing units with investment more than 50 lakhon Machinery & Equipment xviii. Packaging activity with investment more than 50 lakh on Machinery & Equipment xix. Any other service enterprises notified by the State Government for inclusion in the list from time to time. 12.6. Thrust Sectors of the State 12.6.1 The State has identified following sectors as thrust sectors keeping in view the potential for their future growth in the state and employment generation: Manufacturing Industry (i) NRSE Equipment, Energy Storage Devices, Industry 4.0 based manufacturing enterprises 65 (ii) Textiles covered under Division No. 13 of NIC 2008 including Apparel and Made-ups, Technical Textiles, However, Dyeing and finishing unit using ZLD technology shall only be treated under Thrust sector. (iii) Agri & Food Processing Industries (iv) Electronics (v) Aerospace and Defence (vi) Biotechnology, Pharmaceutical and Lifesciences (vii) Processing of Agro waste (Biomass excluding mandi waste) into Energy, Bio- Energy, manure or any other usable Form (viii) Bicycle and Bicycle components/parts including E- Bikes (ix) Alloy Steel (x) Auto and Auto Components including Electrical Vehicles (xi) Sport Goods including fitness equipment (xii) Hand tools including Power Tools and Machine Tools (xiii) Agricultural Machinery and Equipment (xiv) Paper Based Packaging units Service Industry i. IT and ITES ii. Skill Development Centres, Incubation Centres, Accelerators iii. Healthcare iv. Tourism & Hospitality v. Media and Entertainment vi. Logistics vii. Maintenance, Repair and overhaul (MRO) for Aviation & Defence Sector Circular Economy i. Shredding units engaged in the shredding of auto vehicles & auto parts and providing its finished products in the steel making units 66 ii. Manufacturing of Bio diesel iii. Processing of Plastic waste into any usable Products iv. Waste management units leading to some usable product Any other activity Notified by the Central Govt or state Govt adding value in the economy. A special committee shall be notified to approve such units falling under Circular Economy for the purpose of Incentive under the Policy One District One Product The products identified and notified by the State Government/ GoI under ODOP Scheme shall be treated in the category of Thrust sector in their respective Districts in the State of Punjab. 12.7. Fiscal incentives for Startup Units 12.7.1 All incentives, which are available for MSME units as per clause 12.8 and 12.10 will also be available to Startup Units. 12.7.2 In addition, following fiscal benefits will be available to Incubators and Startup units: SN Nature of Incentive Extent of Incentive A Incubators 1 Capital Subsidy i) Govt. Host Institutes shall be provided capital grant of 100% of FCI subject to max INR 1 Cr for setting up of Incubator ii) Private Host Institutes& Stand-alone Incubators shall be provided capital grant of 50% of FCI subject to max INR 50 lakh for setting up Incubator 2 Recurring Expense Reimbursement All approved Incubators shall get the support for recurring expenses as Operational Subsidy assistance up to the limit of INR 3 lakh per year for a period of 5 years 3 Mentoring & Training In order to provide mentoring for priority issues such as fundraising, scaling, recruitment and product interface, Incubators shall be provided Mentoring Assistance support up to a limit of INR 3 lakh per year for a period of 5 years 67 4 Startup Competition Assistance: To encourage entrepreneurship culture in colleges, Eligible Institutes of National Importance, State Universities & Central Universities based in the State, established Incubators in these institution’s premises shall be supported by state government to organize such startup competition fest annually in which state shall provide assistance up to the limit of INR 5 lakh per event. B Startup Units 1 Interest Subsidy Eligible Startups shall be provided interest subsidy of 8% per annum for a period of 5 years on the rate of interest paid on loans obtained from scheduled banks/financial institutions subject to the maximum limit of INR 5 lakh per annum. No separate Interest subsidy as MSME will be provided. 2 Lease rental subsidy Reimbursement of 25% of lease rental subsidy to eligible Startup units established in the State, operating from Incubators/IT Parks/Industrial Clusters or any other notified Industrial Park shall be eligible for a period of 1 year subject to the ceiling of INR 3 lakh per annum. 3 Seed Funding A Seed Grant up to INR 3 Lakh per start-up shall be provided for validation of idea, prototype development, assistance towards travelling costs and carrying out field/ market research/ skill training/ marketing and initial activities to setup a Startup etc. Seed funding to Startups would be routed through concerned Nodal Agency. 4 Scale up Funding The Government shall facilitate Venture Capital to Punjab based startups registered with Startup Punjab of or DPIIT, GOI by connecting them to Punjab Innovation Fund to be set up with dedicated fund of Rs 150 Cr . 5 Reimbursement from Stamp Duty 100% reimbursement from Stamp Duty on registration of MoA/AoA to the Punjab Based Start-ups registered with Startup Punjab. 12.8. Fiscal incentives for MSME units The State will provide following incentives to MSME units: 68 SN Nature of Incentive Extent of Incentive A. Access to Finance 1 Investment subsidy by way of reimbursement of net SGST on intra-State sale Reimbursement of 100% of net SGST for 7 years from the date of commercial production with a cap of 100% of FCI. 2 Capital subsidy to New Micro and Small manufacturing enterprises in Thrust Sector, Exporting Units and Micro and Small Service Enterprises engaged in providing Research and Development activities. 50% of Fixed Capital Investment subject to ceiling of INR 50 Lakh per unit in Border districts, Kandi areas, Aspirational Districts and District Bathinda, Faridkot, Mansa, Muktsar, Sangrur, Malerkotla, Barnala and 20% of FCI subject to maximum 50 Lakhs in other Districts. Capital Subsidy availed by the units under any GOI/State scheme shall be excluded from the incentive. 3 Interest Subsidy for Border Districts, Kandi Areas and Women and SC Enterprises For Border Districts, Kandi Areas and Women and SC Enterprises Interest subsidy @ 5% pa subject to maximum of Rs. 5 lakh per year for 5 years. 4 Additional State Support of interest subsidy under Credit Linked Capital Subsidy Scheme (CLCSS) of Ministry of MSME, GOI Interest subsidy of 5% subject to maximum of 5 lakh per year for a period of 5 years from the date of commercial production to such units eligible under CLCSS scheme. The companies, which have already availed the CLCSS scheme and exhausted its limit are also eligible under the same terms for taking the additional benefits given by the State under the said scheme. 5 Additional State Support of reimbursement of guarantee fee charged under Collateral Free Credit Guarantee Trust for Micro and Small enterprises (CGTMSE) Scheme 100% of guarantee fee to be reimbursed to micro and small enterprises subject to maximum of Rs. 2 lac per year for 5 years from the date of commercial production 69 6 Financial assistance to MSMEs for ‘Emerge’ exchange platform set up by NSE 25% of the cost of Public Issue expenses, subject to maximum of Rs.10 lakh for registration of National Stock Exchange once during the validity period of the Policy. B. Access to Infrastructure 7 Exemption from Electricity Duty 100% exemption for 7 years up to 100% of FCI or 100% exemption on the power consumption corresponding to the Electric Load (KW) required for the installed capacity as recorded in the approved DPR whichever is lower, from the date of release of power connection for new units/from the date of commercial production after expansion for expansion cases. (refer Illustration as per Annexure – B) 8 Exemption/Reimbursement from Stamp Duty 100% exemption/reimbursement from stamp duty for purchase or lease of land and building C. Access to Technology 9 Assistance for Technology Acquisition 50% of the cost subject to maximum of Rs. 25 lakh for adopting technology from a recognized National Institute once during the validity period of the Policy. 10 Additional support to ZED scheme of GOI. Reimbursement of 50% of expenses subject to maximum of Rs. 5 lakh incurred on plant and machinery/testing equipment for obtaining at least gold category status under ZED scheme to First 100 units during the validity Period of Policy. 11 Reimbursement of expenses incurred for Energy Audit/ Water Audit/ Safety Audit/Environment audit/steam Audit 75% subject to maximum of Rs. 1.5 lakh each for energy/environment/steam audit /water audit and Safety Audit once during the validity period of the Policy. 70 12 Assistance for Environmental Compliance 50% financial support subject to max of Rs. 25 lakh on capital cost for setting up of effluent treatment plant, installation of Water Pollution Control Devices, and installing zero liquid discharge technology once during the validity period of the Policy. 13 Exemption from Ground extraction charges for new MSME units (a) Industry using surface water @50% of its total water requirement shall be given 25% exemption from ground water charges for 7 years from the date of commercial production. (b) The Department of Water Resources shall rationalize the ground water charges in consultation with Punjab Water Resource Development Authority. D. Access to Market 14 Reimbursement of expenses incurred for patent registration 75% of the expenses subject to maximum 10 lakh for domestic patent and maximum 20 lakh for international patent once during the validity period of the Policy. 15 Additional Support for Performance and Credit Rating Scheme of Ministry of MSME Reimbursement of 25% of the fee subject to maximum of 10 thousands 16 Reimbursement of expenses incurred on quality certifications 100% subject to maximum of Rs.10 lakh on all quality certifications including ZED certification. 17 Design Clinic Scheme Reimbursement of the contribution of industries of Rs. 1 lac per program for design awareness program by National Institute of Design, Ahmedabad 18 Vendor Development Program Assistance of INR 5 Cr to MSME Punjab for assisting the Industry in organizing Vendor Development Programmes, Buyer – Seller meets, Reverse Buyer- Seller meets. 71 19 Marketing Support Assistance to MSME for showcasing their products at local, national and international event: (a). @50% of total rent limiting to ₹5 lakhs for participation in International Trade Fairs abroad (b). @25% of total rent limiting to ₹3 lakhs for Domestic Trade Fairs and Exhibitions. (c). Nil for Pavilion at Progressive Punjab Events and Conferences 20 Design and Brand Promotion facility State would allow setting up of Design and Brand Promotion facility by the new manufacturing units at separate location w.r.t. manufacturing facility within the state subject to maximum FCI cap of 20% of Total Project cost which shall be added in the eligible FCI of manufacturing unit. No Separate Incentive shall be available for this Design and Brand Promotion Facility. 21 Digital marketing support Reimbursement of 50% of the cost of on boarding on e-commerce Platform, developed by NSIC, or other similar Platform approved by State Govt/GOI, subject to maximum INR 25,000 per unit to first 1000 units during the validity period of Policy. 22 Freight Assistance to Exporting Unit 1% of FOB value or actual freight paid from the place of Manufacture to the place of shipment, whichever is less subject to maximum of Rs 20 Lac per annum for 5 years with in the validity period of policy. 23 Annual State Awards to MSME, SC, Women and Exporters Annual award of Rs. 1 lakh per unit for excellence in productivity, quality, export for each category of enterprise. 12.9. Fiscal incentives for Large Units The State will provide following incentives to Large Units 72 SN Nature of Incentive Extent of incentive 1 Investment subsidy by way of reimbursement of net SGST on intra-state sales 75% of net SGST for 7 years from the date of commercial Production with a cap of 100% of FCI. 2 Exemption from Electricity Duty 100% Exemption for 10 years up to 100% of FCI or 100% exemption on the power consumption corresponding to the Electric Load (KW) required for installed capacity as recorded in the approved DPR whichever is lower from the date of release of power connection for new units/from the date of commercial production after expansion for expansion cases, for all Eligible units. (refer Illustration as per Annexure – B) 3 Exemption/ reimbursement from Stamp Duty 100% exemption/ reimbursement from Stamp Duty for purchase or lease of land and building. 4 Exemption from Property Tax 50% exemption for 7 years from the date of commercial Production. This exemption will not be applicable to service industries such as Tourism & Hospitality, entertainment, Cinema Halls, Multiplexes, Healthcare, Education services and Retail Sector. 12.10. Fiscal incentives for Units in Thrust Sectors 12.10.1. The State will provide the following incentives to MSME and Large units in Thrust Sectors: SN Nature of Incentive Extent of incentive for units in thrust sectors 1 Investment subsidy by way of reimbursement of net SGST on intra-state sales 100% of net SGST for 10 years from the date of Commercial Production with a cap of 125% of FCI. 2 Exemption from Electricity Duty 100% exemption for 10 years up to 100% of FCI or 100% exemption on the power consumption corresponding to the 73 Electric Load (KW) required for installed capacity as recorded in the approved DPR whichever is lower from the date of release of power connection for new units/from the date of commercial production after expansion for expansion cases. (refer Illustration as per Annexure – B) 3 Exemption/ reimbursement from Stamp Duty 100% exemption/ reimbursement from Stamp Duty on purchase or lease of land and building 4 Exemption/Reimbursement from CLU/EDC 100% exemption/Reimbursement from CLU/EDC 5 Exemption from Property Tax 100% exemption for 10 years from the date of commercial Production. This exemption will not be applicable to service industries such as Tourism & Hospitality, entertainment, Cinema Halls, Multiplexes, Healthcare, Education services and Retail Sector. 12.10.2. The other incentives provided to MSME units in general will also be available to MSME units in Thrust Sectors. 12.10.3. In addition, following sector specific special incentives for units in Thrust Sectors will be given: SN Nature Extent of Incentive A. Food Processing Industries 1 Exemption of Market Fee, Rural Development Fee and other State taxes and fees on raw material for food processing industries 100% exemption of all taxes and fees paid for purchase of raw material for food processing units up to 10 years from the date of commercial Production or upto 100% of their Fixed Capital Investment whichever is earlier, for new units and Fixed Capital Investment made in expansion for already operational units. 74 B. Electronic System and Design Manufacturing 2 Additional support to units under SPECS scheme, MEITY  50% top up of Capex support approved and provided by MEITY, GoI to units under SPECS scheme of GoI. The support shall be provided to first 10 ESDM units limited to maximum INR 10 Cr. per unit.  The benefit shall be available to the unit making Minimum Investment prescribed under SPECS scheme by MEITY from time to time. C Apparel and Made ups and Technical Textiles 3 Additional support to units under Amended technology upgradation fund (A-TUF) scheme of GOI 5% interest subsidy for MSMEs for new/expansion/ diversification in addition to benefits under ATUF for apparel and made ups and technical textiles for 5 years from the date of commercial Production subject to a maximum of 10 lakh per year D IT/ITES 4 Capital Subsidy to IT/ITES units 50% of Fixed Capital Investment subject to ceiling of INR 2.5 Crores per unit 12.11. Fiscal Incentives for Anchor Units 12.11.1. The State realizes the importance of Anchor units in creation of jobs and growth of a sector. Therefore, a customized package of incentives shall be offered to the Anchor investors in different sectors to suit particular investment requirements based on gestation period, pioneering nature, locational aspects, technology, potential to develop ancillary enterprises, project’s importance to the State’s industrial growth and its ability to generate employment. 12.11.2. The units meeting the following criteria will be treated as Anchor units Sectors Minimum FCI (Rs in Crore) OR Minimum Direct employment Generation 75 IT/ITES Apparel & Made ups Footwear & Accessories Electronics Food Processing Industries 75 500 Any other Manufacturing Sector or Service Sector (as defined for large Industries) except the units in negative list 250 1000 All the manufacturing units except the units in negative list with Funding by NRI/Person of Indian Origin/Foreign Investors as per RBI guidelines, having minimum NRI/Foreign investment of 49% in the Total FCI subject To FDI norms. 100 500 12.11.2.1 Unit seeking Fiscal incentives of Anchor Category, on the basis of criteria of employment will have to maintain threshold limit of direct employees on monthly basis. (Man Months) for e.g for a threshold limit of 500 employees, the minimum man month required will be 500*12= 6000 nos. 12.11.2.2 The monthly return in form 22 shall be prepared and dully verified by concerned labour officer. 12.11.2.3 In accordance with clause 14.1 (viii) the unit shall submit annual return with employment data by 30th April of next year along with copy of EPF returns, Form-22 (verified by labour officer and CA certificate during the production/incentive period. 12.11.2.4 In case a unit fails to achieve the threshold limit in a particular month than Anchor status will stands revoked automatically from that month and future incentives of anchor category will be stopped and unit shall be entitled for the incentive of its respective category MSME or large or thrust as the case may be. The excess incentive availed by the units w.r.t. Anchor category shall be recovered @ 12% PA Compound rate of Interest. 76 12.11.2.5 After submission of ICAF including relevant incentive forms and claiming status of Anchor unit on the basis of employment, the case shall be placed before DLC/SLC as the case may, as per the recommendation of scrutiny committee. After Approval by DLC/SLC, as the case may be, an eligibility certificate may be issued to the unit for all the applicable incentives. The conditions at S No. 12.11.2.1 to 12.11.2.4 above will be incorporated in addition to the other conditions as applicable under this Policy. 12.11.3. In case of expansion, the unit will be categorised as MSME or Large after taking into account the proposed expansion in plant & machinery. However, anchor category will require additional investment of minimum FCI or employment indicated above in clause 12.11.2 12.11.4. Fiscal incentives granted to MSME units shall continue, even if in future, there is change in category of either of these units due to change in definition by GOI. 12.11.5. The State will give following special incentives to the Anchor Units apart from other fiscal and non-fiscal incentives, which the unit may be entitled to. The units falling both in MSME/ LARGE/ Early Bird Units / Boarder Zone/ Thrust category and Anchor Category shall be eligible for higher Incentive of One category only. SN Nature of incentive Extent of incentive 1 Investment subsidy by way of reimbursement of net SGST 100% reimbursement of net SGST for a period of 15 years from the date of commercial Production subject to 200% of FCI in place of investment subsidy specified above for different categories of units. 2 Exemption/ Reimbursement from CLU/EDC 100% exemption/ Reimbursement from CLU/EDC charges 3 Employment Generation subsidy Employment Generation subsidy @ Rs 36,000 per employee per year for a maximum period of 5 years and @ Rs. 48,000 per employee per year for a maximum period of 5 years from the date of commercial Production for women and SC/BC/OBC employee provided only Directly recruited employee (domicile of Punjab only) and having unique identification number where PF is being subscribed /ESIC number where ESI contribution is being paid as the case may be , shall be considered for the incentive 4 Exemption from Electricity Duty 100% Exemption for 15 years up to 100 % of FCI or 100% exemption on the power consumption 77 corresponding to the Electric Load (KW) required for installed capacity as recorded in the approved DPR whichever is lower from the date of release of power connection for new units/from the date of commercial production after expansion for expansion cases, for all eligible units. (refer Illustration as per Annexure – B) 5 Exemption from the condition of the license issued by PAMB from payment of 2% over and above the MSP, for permission given under Direct Purchase Exemption from the condition of the license issued by PAMB from payment of 2% over and above the MSP, for permission given under Direct Purchase. 6 Exemption/ reimbursement from Stamp Duty 100% exemption/ reimbursement from Stamp Duty on purchase or lease of land and building 12.11.6. The Anchor units being implemented in Phase wise Investment in accordance with clause 13.6 shall be granted the incentive of respective category as per the investment till it achieve the status of anchor unit within the prescribed eligibility period. 12.12. Special incentives for 10 Early Bird Units in the new Industrial Parks approved by the State In order to encourage units to start production as early as possible, the State would provide following incentives in the new Industrial Parks approved by the State. SN Nature of Incentive Extent of incentive 1 Investment subsidy by way of reimbursement of net SGST to the 5 Early Bird MSME units and 5 large units, which come into production in the new industrial parks approved by the State 100% reimbursement of net SGST for a period of 12 years from the date of commercial production subject to 125% of FCI in place of investment subsidy specified above for different categories of units. 12.13. Support for Infrastructure Related Schemes 78 SN Scheme Extent of Support 1 Additional State Support for Cluster Development Program (MSE-CDP) The State will provide its share for each cluster as per the guidelines of the scheme as notified by GOI from time to time. 2 State Mini Cluster Development Scheme The State would provide 70% support with 30% by SPV for setting up Common Facility Centre (CFC) for project cost upto Rs. 5 Crore 3 Critical Industrial Infrastructure Development Scheme (CIIDS) The State would provide 80% support with 20% by SPV on the cost of projects of Rs. 2.00 crore to provide adequate width of road connectivity with nearest State/National Highway, water and independent power feeder upto the periphery of New Govt /Private industrial estates/industrial areas/ and identified projects The projects eligible for financial assistance under PM Gati Shakti Programme of GOI shall be recommended to GOI 4 Upgradation and maintenance of Industrial Estates The State shall provide for a dedicated revenue stream of 3% of Electricity Duty collected from the Industrial Estates to meet the upgradation and maintenance costs. 5 Setting up of Common Environment Infrastructure on PPP The State may provide land for CETPs on lease and exemption from Electricity Duty on operations of the CETP. 6 Setting up of Land Acquisition Fund The State would set up a land acquisition fund, which will act as a revolving fund to be utilized for acquiring land and would be replenished from the disposal of land. 79 6 Sector Specific Skill Development Centre The State shall provide capital subsidy to the tune of 50% maximum of Rs. 5 Crores per Cluster towards cost of the Building and Machinery & other training equipment for setting up Cluster specific skill centres in the identified MSME cluster by the Industrial Associations/SPVs. The grant availed under any other Scheme of state/GOI shall be excluded from The incentive. 12.14. Reduction in Stamp Duty for industrial units on Registered Mortgage The State would reduce Stamp Duty with a maximum cap of Rs. 10000 per instrument of Registered Mortgage at par with Equitable mortgage lien for industrial units availing Loan from financial institutions. 12.15. Special Relief package for Sick MSME Units 12.15.1 RBI has laid down a comprehensive framework for revival and rehabilitation of Micro, Small & Medium Enterprises (MSME), which provides for restructuring of loan and other financial assistances availed by MSME units from the Banks. It provides for rescheduling of payments, grant of additional assistance, if required, allow sale of non-core assets of the business for the revival of the MSME units. 12.15.2 The State will take following action in this regard: 12.15.3 As per the provisions of this framework, a representative of the State Govt. is also required to be associated. General Manager of the District Industries Centre of the concerned district will be nominated as member of this Committee for preparation of Corrective Action Plan (CAP). 12.15.4 In addition to the restructuring, being provided by the banks, the following relief& concessions will also be considered in the Corrective Action Plan for rehabilitation/revival of the MSME units: 12.15.5 Deferment of recovery of arrears of Electricity Duty, Power Bills, House Tax and Water Charges for a period up to five years. The deferred dues will be repayable within a period of five years thereafter with interest at a specified rate. 12.15.6 Exemption from payment of electricity duty by the unit in respect of energy consumed for a period of two years from the date of sanction of Rehabilitation Package. 80 12.15.7 Exemption from power cuts to such units, to the extent possible, will be ensured. 12.15.8 Prompt permission of State Government to the sick units for the sale of surplus land. 12.15.9 Fixed charges for electricity connection would be exempted during the closure period. 12.16. One Time Special Relief Package for Sick Large Units 12.16.1 In order to revive the sick large units, the State will provide one-time relief package National Company Law Tribunal approved Sick Units/ The eligible sick units will submit their revival and rehabilitation plan taking into consideration the concessions and particularly highlighting the number of existing jobs and number of additional jobs likely to be created. The plan will be considered for approval by the State. 12.16.2 The one-time relief package to Sick Large Units will consist of the following: 12.16.3 Deferment of recovery of arrears of Electricity Duty, Power Bills, House Tax and Water Charges for a period up to five years. The deferred dues will be repayable within a period of five years thereafter with interest at a specified rate. 12.16.4 Exemption of payment of electricity duty by the unit in respect of energy consumed for a period of three years from the date of sanction of Rehabilitation Package. 12.16.5 Reimbursement of 75% of net VAT/ net SGST for a period of 5 years from the date of sanction of Rehabilitation Package for Border Districts and 50% of net VAT/net SGST for a period of 5 years from the date of sanction of Rehabilitation Package for other districts. 12.16.6 Exemption from power cuts to such units, to the extent possible, will be ensured. 12.16.7 Prompt permission of State Government to the sick units for the sale of surplus land. 12.16.8 Fixed charges for electricity connection would be exempted during the closure period. 12.16.9 Fiscal incentive for acquisition of sick units and revival thereof A unit with proven track record, which acquires a sick unit shall be entitled to one-time special relief package for sick large unit subject to: (i) Minimum enterprise value of sick unit shall be Rs. 50 Crore (ii) the sick unit shall fulfil the following criteria: Existed for at least 5 years and {Incurred accumulated losses equal to, or exceeding its entire net worth at the end of last financial year or categorized as NPA in last 8 quarters consecutively} 81 Acquiring unit will be entitled to one-time special relief package for sick large unit with period for exemption from ED and reimbursement of net SGST increased from three years to seven years. 12.18. Special Incentives for Border Zones and Kandi area 12.18.1. The State would offer following special incentives for development of Border Zone (BZ) of area falling within 30 Kms of International Border Districts abutting International Boarder and kandi area to the first Two new unit in each sector of manufacturing and service industry with minimum FCI of Rs 100 Crore which commences Fixed Capital Investment and goes into production during the operative period of this policy. The incentive shall be for new units only and not for expansion of existing units: - 12.18.2. The following special incentives will be available for Two new units being set up in BZ and Kandi Areas: (i) No CLU clearance will be required in this Border Zone & Kandi Areas to set up Industry (ii) 100% exemption/reimbursement from EDC charges (iii) 75% exemptions of all the State duties, taxes and fees such as Rural Development Fee, Market Development Fee, State Excise Duty etc. to the first two units, which comes into operations in BZ & kandi areas for each sector of manufacturing and service industry. If there are higher incentives available under any other section of the policy, then the same would also be available to these units. (iv) In addition to (iii) above, the first two units being set up will also be entitled to 40% additional FCI in the maximum limit prescribed for reimbursement of net SGST. (v) For kandi areas the above special Incentives shall be available to all eligible units except units falling in Red category as per PPCB Norms. 12.19. Incentive for products not covered under GST regime The Products which are out of the purview of SGST/IGST/CGST in the GST regime and are still governed by VAT regime shall be provided investment subsidy by way of reimbursement of net VAT paid for a period in place of net SGST. All other conditions such as maximum limit and time period etc. would be the same as laid down in this policy. 12.20. Fiscal Incentives to Industrial Parks 12.20.1. Industrial Parks set up by Private Developers with minimum area of 25 Acres (10 Acre for IT Park) having 100% Industrial Component or having Minimum 60% of Industrial Component, up to 30% of Residential component and up to 10% of Commercial Component, will be 100% exempted from payment of CLU/EDC on Industrial component and EWS residential component of Industrial Parks. However pro-rata charges such as CLU, 82 EDC, LF/PF, SIF, UDF etc. shall be applicable for rest of the components like Residential (except EWS), Commercial etc. of the industrial park. 12.20.2. Industrial Parks with minimum area of 25 Acres set up by SPV of Industry shall be provided additional benefit of Capital Subsidy @25% of Cost incurred on creation of common Infrastructure like Roads, STP, Power grid, Power transmission lines, water, drainage, Sewerage, parking Space, Subject to, maximum of 25 Crore. The Procedure of sanction/ Disbursement of capital subsidy shall be notified separately. 12.20.3. The minor deviation of plus/minus 5% subject to maximum of 1 acre in the requirement of minimum area of Industrial Park of 10/25 acre shall be considered by the competent authority on case to case basis. 12.20.4. The state will increase the area of Industrial zone planned in the notified Regional Master Plan of SAS Nagar to boost development of Private Industrial Park. The detailed modalities in this regard shall be worked out keeping in view the trend of industrial growth. 12.21. Fiscal Incentives for new Ultra Mega and Mega Projects 12.21.1. New industrial unit meeting following criteria will be considered for the incentives under Mega and Ultra Mega Projects: Category Minimum Fixed Capital Investment (Rs. Cr) And Minimum Contract Demand (MVA)