IIPA 2019

§1Who it is for

New manufacturing units in Assam

Services: only hotels/resorts 3-star and above, river cruise, green power generation

New manufacturing MSMEs in Assam that will pay SGST, especially inside Government parks.

Traders, tea units, small hotels below 3-star, and service businesses outside the three listed activities.

§2Eligibility

New industrial unit that commenced commercial production in Assam during the policy validity
Manufacturing units not in the prohibited list (Annexure 1): tobacco, pan masala, plastic carry bags below 20 micron, refinery products (Ch. 27), coke, saw mill, tea, galvanisation/corrugation of sheets, marble/decorative stone cutting & polishing, paper cutting from rolls, coal washing/sizing, plain rod to tor rod, refining/packing of edible oil, refining of engine oil, purification/packing of drinking water, cooked food/sweets/namkin with P&M below ₹1 crore, peripheral activities like packing/re-labelling
Service sector: only hotels/resorts 3-star and above, river cruise, power generation through green technology
Must employ at least 80% people of Assam in managerial cadre and 90% in non-managerial cadre; employment certificate from competent authority
Apply online for Eligibility Certificate within 6 months of commercial production (policy and operational guidelines; the FAQ says 12 months)
Company, corporation, co-operative, partnership, proprietorship, trust, FPO/FPC and State Govt units eligible; Central PSUs not eligible
Cash payments are not counted as investment
Unit must be functional when subsidy is paid
Relocated/recycled/refurbished plant & machinery not eligible

§3Benefits

SGST: 100% of SGST paid in cash for 15 years, capped 150%-250% of FCI by size and location
Power: ₹2/unit for 5 years, max ₹50 lakh/year
DG set 50% up to ₹20 lakh; stamp duty 100% up to ₹25 lakh; certification 75% up to ₹10 lakh; working capital interest 2% for 5 years up to ₹50 lakh; SME listing 30% up to ₹5 lakh; ETP 50% up to ₹25 lakh; ₹10,000 per local youth employed

§4Norms — pattern of assistance

SGST cap outside parks: Micro 200%, Small 150%, Medium & Large 150% of FCI; inside Plastic/Bamboo/Food/Tea/Govt parks: 250% / 180% / 150%
All 'other incentives' together max 100% of FCI (SGST not included in this cap)
FCI = plant & machinery + land and building directly connected with manufacturing (hotel premises / cruise vessel for services); land at lower of registration value or actual cost
Large unit = P&M above ₹10 crore (policy definition)
After availing SGST benefit, unit must run 5 more years at not below 75% of average production of preceding 5 years, else full refund
Eligibility Certificate issued by GM, DICC for micro units and by Commissioner of Industries & Commerce for others, after District Level / State Level Committee
Investment counted from date of Udyog Aadhaar/IEM acknowledgement till commercial production; civil works valued at APWD Schedule of Rates
Investment intention must be filed with GM, DICC within 30 days of IEM/Udyog Aadhaar, then quarterly investment statements till production

§5Documents

Tick each one as you get it ready.

§6How to apply

File investment intention (Form 1.0) online within 30 days of IEM/Udyog Aadhaar

After commercial production, apply online for Eligibility Certificate (Form 2.0 + checklist Form 2.1) to GM, DICC

Enquiry officer verifies the unit; DLC (micro) or SLC (others) recommends; EC issued

Then file separate claims for each incentive with its form and checklist (Forms 4.0-12.2)

§7Pros and cons

Micro units in Government parks can get SGST back up to 250% of their investment over 15 years (IIPA para 13.1)
Power subsidy of ₹2/unit is large relative to typical industrial tariffs and runs 5 years (IIPA para 14.1)
Policy has been kept alive by the Sep 2024 extension, so units commencing now can still apply

No upfront capital subsidy for MSMEs - main benefit is SGST, which only helps once the unit sells and pays tax in cash
80% managerial and 90% non-managerial local employment condition is strict (IIPA para 15.c)
Services covered only if 3-star+ hotel, river cruise or green power; tea manufacturing is on the negative list
Open-ended extension 'until further notifications' means terms can end with little notice

§1Who it is for