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Incentives Categories

The document outlines various incentives under the Industrial Development Policy 2020-23 for micro, small and medium enterprises (MSMEs) in different categories. Key incentives include 15% investment subsidy on fixed capital up to Rs. 20 lakh, 3% interest subsidy on loans for 5 years, 100% reimbursement of stamp duty, 25% reimbursement of land conversion charges up to Rs. 10 lakh, and 100% reimbursement of net SGST for 5 years or up to 100% of fixed capital investment, whichever is earlier. Special packages provide additional incentives for women entrepreneurs from backward classes/minorities and entrepreneurs from scheduled castes/tribes.

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26 views4 pages

Incentives Categories

The document outlines various incentives under the Industrial Development Policy 2020-23 for micro, small and medium enterprises (MSMEs) in different categories. Key incentives include 15% investment subsidy on fixed capital up to Rs. 20 lakh, 3% interest subsidy on loans for 5 years, 100% reimbursement of stamp duty, 25% reimbursement of land conversion charges up to Rs. 10 lakh, and 100% reimbursement of net SGST for 5 years or up to 100% of fixed capital investment, whichever is earlier. Special packages provide additional incentives for women entrepreneurs from backward classes/minorities and entrepreneurs from scheduled castes/tribes.

Uploaded by

milletfusions
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Incentives for Micro and Small Enterprises under IDP 2020-23

S.No Category Incentives (IDP 2020-23)


15% Investment Subsidy on Fixed Capital Investment limited up to ₹20
lakh, whichever is lower. The subsidy will be released only after 3
1 Investment Subsidy years of continuous operation with at least 80% efficiency in all
parameters i.e. employment, production etc.

Interest subsidy of 3% on the term loan taken for fixed capital


2 Interest Subsidy investment by new MSEs for 5 years from the date of commencement
of commercial production

• Reimbursement of 100% stamp duty and Transfer duty paid by the


industry on purchase of land meant for Industrial use.
4 Stamp Duty
• Reimbursement of 100% stamp duty for lease of land/shed/
buildings, mortgages and hypothecations

Land Conversion Reimbursement of 25% land conversion charges for Industrial use
5 limited to ₹10 lakh
charges

Reimbursement of 100% of net SGST accrued to state for a period of


Net SGST 5 years from the date of commencement of commercial production or
6
reimbursement up to realization of 100% fixed capital investment, whichever is earlier
Incentives for Medium, Large and Mega Enterprises under IDP 2020-23

S.No Category Incentives (IDP 2020-23)

15% Investment Subsidy on Fixed Capital Investment limited up to


₹20 lakh, whichever is lower. The subsidy will be released only after 3
1 Investment Subsidy years of continuous operation with at least 80% efficiency in all
parameters i.e. employment, production etc.

Interest subsidy of 3% on the term loan taken for fixed capital


investment by new MSEs for 5 years from the date of commencement
2 Interest Subsidy
of commercial production

Reimbursement of 25% land conversion charges for Industrial use


Land Conversion
3 limited to ₹10 lakh
charges

Reimbursement of 100% of net SGST accrued to state for a period of


5 years or 100% fixed capital investment, whichever is lower, from the
date of commencement of commercial production earlier linked to
employment

Net SGST Direct Employment SGST reimbursed


4 Generated
reimbursement
<1000 50%

1000 to 2000 75%

2000+ 100%
Special Package for Women Entrepreneurs belonging to Backward Classes /
Minority Communities

S.No Category Incentives (IDP 2020-23)


35% investment subsidy on fixed capital Investment limited to Rs.50
Lakhs for MSEs. The subsidy will be released only after 3 years of
1 Investment Subsidy continuous operation with at least 80% efficiency in all parameters
i.e. employment, production etc.

Interest subsidy of 3% on the term loan taken on the fixed capital


2 Interest Subsidy investment for a period of 5 years from the date of commencement of
commercial production for MSEs.

Fixed power cost reimbursement @ ₹1.25 per unit for a period of five
3 Power Subsidy years from the date of commencement of commercial Production

• 100% reimbursement of Stamp duty and transfer duty paid by


the industry on purchase of land meant for industrial use.
4 Stamp Duty
• 100% reimbursement of Stamp duty for Lease of
Land/Shed/Buildings and mortgages and hypothecations.

• 50% rebate in land cost limited to 20 lakhs in Industrial


5 Rebate Land Cost Estates/Industrial Parks for MSEs.

Land Conversion • 25% Land conversion charges for the industrial use limited to 10
6 lakhs for MSEs.
charges

• Reimbursement of 100% net SGST to Micro and Small


Enterprises*
• Reimbursement of 75% net SGST to medium enterprises*
Net SGST
9
reimbursement • Reimbursement of 50% SGST to large enterprises*
*for a period of 5 years from the date of commencement of
commercial production or up to realization of 100% fixed capital
investment, whichever is earlier.

The provisions in the package are applicable for Women Entrepreneurs belonging to Backward Classes
/Minority Communities who establish manufacturing units as sole Proprietor or invariably having 100%
share in Partnership/Private Limited Companies and provide employment to a minimum of 10 people.
Special Package for Entrepreneurs belonging to Scheduled Caste /Scheduled Tribe
Communities under Badugu Vikasam (Spl. Incentive package)

S.No Category Incentives (IDP 2020-23)


Manufacturing Service Sector and Transport

45% (Limited to Rs. 75 Lakhs) 45% (limited to Rs. 1 Crore)


Investment
1
Subsidy Investment subsidy on fixed capital Investment for MSEs. The subsidy
will be released only after 3 years of continuous operation with at least
80% efficiency in all parameters i.e. employment, production etc.

Interest subsidy upto 9% and above 3% for 5 years on the term loan
2 Interest Subsidy taken on the fixed capital investment for a period of 5 years from the
date of commencement of commercial production for MSEs.

Fixed power cost reimbursement @ ₹1.5 per unit for a period of five
3 Power Subsidy years from the date of commencement of commercial Production

• 100% reimbursement of Stamp duty and transfer duty paid by the


industry on purchase of land meant for industrial use.
4 Stamp Duty
• 100% reimbursement of Stamp duty for Lease of
Land/Shed/Buildings and mortgages and hypothecations.

• 50% rebate in land cost limited to 20 lakhs in Industrial


5 Rebate Land Cost Estates/Industrial Parks for MSEs.

Land Conversion • 25% Land conversion charges for the industrial use limited to 10
6 lakhs for MSEs.
charges

7
Quality • 100% of the cost incurred for Quality Certification /Patent
certification

Seed capital • 25% of Machinery cost as Seed Capital Assistance for first
8 generation entrepreneur for establishing Micro units
Assistance

• Reimbursement of 100% net SGST to Micro and Small Enterprises*


• Reimbursement of 75% net SGST to medium enterprises*

9
Net SGST • Reimbursement of 50% SGST to large enterprises*
reimbursement
*for a period of 5 years from the date of commencement of commercial
production or up to realization of 100% fixed capital investment,
whichever is earlier.

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