INDUSTRIAL POLICY

INDUSTRIAL POLICY OF GOVERNMENT OF TRIPURA

Strategic Approach:

1. Synergic Partnership – Public-private partnerships in consultancy, planning, implementation, marketing promotion, infrastructure projects etc.

2. Time Sensitivity- Long time perspectives over and above any short time gain.

3. Economic Soundnes.

4. Policy Analysis- to play a facilitatory role that can be both pro-active and responsive.

Policy Objectives:

1. To improve Basic as well Industrial Infrastructure.

2. Industrial Growth by attracting Private Investment.

3. To improve investment climate towards better regulation by removing barriers to competition.

4. Creation of hassle-free and congenial investment climate.

5. To bring significant increase in the State Domestic Product.

6. Widening of resources base of the state.

7. Development of connectivity (Internal road, railways and air & telecom).

8. Increasing linkages & Trade & Commerce with Bangladesh.

9. Industries & trade development through policies and incentives for overriding locational disadvantages.

10. Better social infrastructure.

11. Enabling Entrepreneurship building capacities through entrepreneurial and technical skills, training and promotion of self-employment.

Incentives for Industries

The State Government offers incentives for setting up of industrial units in manufacturing sector as well as service sector under “Tripura Industrial Investment Promotion Incentive Scheme, 2017”, which is comparable to other States.

Brief particulars of incentives for new MSME sector are as follows :

1. Capital Investment Subsidy@ 30% on fixed capital investment subject to a ceiling of Rs.60 Lakhs per enterprises. For thrust sector industries, 40% with ceiling of Rs. 70 lakhs per enterprise.

2. 15% Procurement Preference to local• industrial enterprises subject to 20% value addition.

3. Industrial Promotion Subsidy subject to an overall ceiling of Rs.60 lakhs per annum.

4. 25% Reimbursement of Power Charges for 5 years, maximum Rs.12 lakhs per year.

5. 4% Reimbursement of Interest on Working Capital Loans for 5 years, maximum 3.00 lakhs per annum.

6. Reimbursement of Standard Certification charges/ fees/ expenses to eligible enterprises shall be paid one-time in full for standard certifications in 10 selected areas issued by National and Inter-national Bodies.

7. 100% Exemption from the payment of Earnest Money and Security Deposits.

8. Employment Cost Subsidy under thrust sector towards EPF and ESI contribution for 5 years on employment of 20 or more persons.

9. Subsidy on fees paid for Credit Guarantee of loans.

10. Export Promotion Subsidy @ 10% on value of export, maximum Rs. 20 lakhs per annum.

11. Subsidy for participation in fares and exhibitions thrust sector industries.

Special Incentives to Industrial Enterprises continue to operate for 5 years are provided for a further period of 5 years which are as follows:

a) Capital Investment Subsidy on substantial expansion @40% or 30%, maximum Rs.30 lakhs and Rs. 25 lakhs for thrust sector and other than thrust sector respectively.

b) Industrial Promotion Subsidy @25%.

c) Partial re-imbursement of Power charges @15% of actual power charges paid after 5 years of operation, maximum Rs. 6 lakhs for employment in the range of 20 to 50 persons, Rs. 9.00 lakhs for employment in the range of 51 to 100 persons and Rs. 12 lakhs for employment of more than 100 persons.

d) Employment cost subsidy with employment of 20 or more persons @ 50% of employer contribution paid towards EPF and ESI after 5 years of operation.

e) Wages Subsidy on employment of 20 or more persons @ 20% of actual wages paid, maximum Rs. 2.50 lakhs per year.