§1Who it is for

  • New units and units doing substantial expansion with investment ₹5 lakh to ₹50 lakh

Useful if

Small local manufacturing or service units investing ₹5-50 lakh.

Do not spend time on it if

Projects above ₹50 lakh looking for a state capital subsidy; traders.

§2Eligibility

  1. New unit or existing unit with substantial expansion (additional investment at least 25% of existing investment)
  2. Investment between ₹5 lakh and ₹50 lakh in P&M (manufacturing) or building/shed and durable assets (services)
  3. Not in negative list: tobacco, plastic bags below 20 micron, refinery products, plantation refineries and power generating units, coke, fly ash, gold and gold ore, molasses, polluting/eco-sensitive-area units, low value addition (storage, cleaning, packing, repacking), activities banned by law
  4. Services only from positive list (IT/electronics/online services/film/music studio, commercial greenhouse, cold storage, hospitals/diagnostics, eco-tourism, cable car/amusement/adventure parks, hotels/guest houses/resorts with solar water heating, heritage restoration, coaching/skilling, repair services, testing/R&D, printing, EV fleets of 10+, EV charging, priority-sector services)
  5. Employ at least 20% APST in managerial and 30% in non-managerial posts within 3 years of production
  6. Units already availing benefits under the 2020 policy are not eligible
  7. Units availing similar incentive under another GoI/State scheme not eligible for the same incentive
  8. Register with the Industries Department; date of operations verified by designated authority

§3Benefits

  • 50% of P&M / building and durable assets cost
  • Max ₹15 lakh (investment ₹5-25 lakh) or ₹30 lakh (₹25-50 lakh)

§4Norms — pattern of assistance

  1. Additional 10% of incentive value for priority sector units, within the cap
  2. Additional 10% for units with at least 50% of skilled workforce (min 5 / 10 employees) from Arunachal permanent residents, within the cap
  3. New P&M only - relocated, recycled or refurbished machinery excluded
  4. Claimed after commencement of commercial production/operation

§5Documents

Not published

The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.

§6How to apply

  1. 1

    Check eligibility; prepare DPR

  2. 2

    Register on the state Single Window / EoDB portal and get clearances/NOCs

  3. 3

    Apply for incentive after production; verification and approval

§7Pros and cons

Merits

  • 50% rate is high for very small units (ICAI summary para 3.3)
  • Extra 10% for hiring locals

Demerits

  • Summary shows slabs only up to ₹50 lakh investment - larger units must rely on UNNATI
  • Official text not available online; terms may differ

→Related schemes

Need help with Arunachal capital incentive?

Eligibility check, DPR and application file — ask us on WhatsApp.

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Our interestHelp is our paid service. You can also apply for the scheme yourself.

Sources

  1. ICAI MSME & Startup Committee - Arunachal Pradesh State MSME Policy (AP-IDIP 2025)

Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.