New Industrial policy Update : In a major change in the new policy made in August, subsidy on investment up to Rs 1 crore will be given in two installments within two years in micro category industries.
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The new industrial policy has come into effect. On completion of the project, instead of one-time subsidy, it is now distributed in installments. Not only this, in the new policy the slabs have been changed and divided into four categories instead of five.
Capital subsidy and interest have also been increased in the scheme to promote micro, small and medium industries. A and B categories include hilly districts and C and D categories include most of the plain areas.
In a major change in the new policy made in August, subsidy on investment up to Rs 1 crore will be given in two installments within two years in micro category industries.
Investments ranging from Rs 1 crore to Rs 50 crore will get subsidy in five installments within five years. The new rule also states that investors in primary and very primary category manufacturing enterprises of natural fiber, products marked in one district, two products, manufacturing enterprises of GI tagged products and food processing enterprises will also get additional capital assistance as per the rules.
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Apart from this, Scheduled Castes, Tribes and women entrepreneurs have been included in the very priority category for encouragement. Under this, additional subsidy will be given up to a maximum limit of Rs 10 lakh for investments of Rs 1 crore, Rs 15 lakh for investments between Rs 1 to Rs 10 crore and Rs 20 lakh for investments of Rs 10-50 crore.
The change that happened…
Micro, Small and Medium Garden Policy divided into four categories: Earlier the scheme was divided into five categories. Categories A and B are for remote hilly districts, categories C and D are for the plains.
In the previous industrial policy, subsidy up to Rs 40 lakh i.e. 40 percent was available in A category (capital investment). There was a provision of subsidy up to Rs 35 lakh in B category, Rs 30 lakh in C and Rs 15 lakh in D category.
In the new policy of MSME, a rule has been made to give 50 percent subsidy to those investing up to Rs 1 crore in A category. Apart from 50 percent profit in investments between Rs 1 to Rs 5 crore, there will be an additional profit of 25 percent in investments above that.
Whose limit has been kept maximum at Rs 1.50 crore. In this category, the limit of subsidy has been kept at a maximum of Rs 2.5 crore for investments of Rs 5-10 crore and a maximum of Rs 4 crore for investments of Rs 10 to 50 crore. Similarly, in B category, there will be 40 percent subsidy on investment up to Rs. 1 crore, in C category, there will be 30 percent subsidy on investment up to Rs. 1 crore, and in D category, there will be subsidy up to Rs. 20 lakh on investment up to Rs. 1 crore. On top of this, there is provision for additional subsidy on investment as per rules.
This policy has been implemented for manufacturing entrepreneurs coming into production from August 1. The objective of this policy is to stop migration and to invest capital and establish employment by establishing more and more micro, small and medium enterprises in the hilly areas.
-SK Pant, General Manager District Industries, Nainital.