CENTRAL CAPITAL INVESTMENT SUBSIDY SCHEME, 2013

PREAMBLE

The Government of India is pleased to notify the extension of the following scheme of Central Grant or Subsidy under Special Package-II for Industrial units in the states of Himachal Pradesh and Uttarakhand with a view to accelerating the industrial development in these States.

Scheme - 1. Short Title.

This scheme may be called the Central Capital Investment Subsidy Scheme, 2013.

It will be a Central Sector Scheme.

Scheme - 2. Commencement and duration of the Scheme.

It will come into effect from the 7th January, 2013 and remain in force upto and inclusive of 31-03-2017.

Scheme - 3. Applicability of the Scheme.

The scheme is applicable to all new industrial units and existing industrial units on their substantial expansion in Growth Centres or Industrial Infrastructure Development Centres (IIDC) or Industrial Estates/Park/Export Promotion Zones and Commercial Estates set up by states of Himachal Pradesh and Uttarakhand. The scheme is also applicable to new industrial unit and existing industrial unit on their substantial expansion in the specified Thrust Industries (Annexure-I) located outside these Growth Centres and other identified locations.

Scheme - 4. Extent of admissible subsidy.

All new industrial units and existing industrial units on their substantial expansion, would be eligible for Capital Investment Subsidy @ 15% of investment of Plant & Machinery, subject to a ceiling of Rs. 30 lakhs. Micro, Small and Medium enterprises would be eligible for Capital Investment Subsidy @ 15% of the investment in plant & machinery subject to a ceiling of Rs. 50 lakh.

Scheme - 5. Eligibility period.

The subsidy will be available for the duration of the scheme to such units which have pre-registered and commence commercial production/operation prior to 31-03-2017. The unit should file its claim as per prescribed procedure at District Industry Centre concerned within one year from date of commencement of commercial production/operation.

Scheme - 6.

The industrial unit registered before 07-01-2013 under the erstwhile scheme of subsidies and have filed the claims within one year from the date of commencement of commercial production/operation would be eligible for subsidies under erstwhile scheme. Units which have registered on or after 07-01-2013 would be covered under the present scheme. However, if such a unit has not registered with DIC (District Industry Centre) due to non-existence of the package during the intervening period or not submitted claim within one year of the date of commencement of commercial production/operation, the unit can do so not later than 31st May, 2014.

Scheme - 7. Definitions.

(i)       "Industrial Unit" means any industrial unit where a manufacturing programme is carried on or a suitable servicing unit as defined in M/o SSI letter No. 2(3)/91-SSI.Bd. dated 30-09-1991, other than that run Departmentally by the Government.

(ii)      'New Industrial Unit' means an industrial unit which commences commercial production/operation on or after 7th January, 2013.

(iii)     'Existing Industrial Unit' means an industrial unit which has commenced commercial production/operation before 7th January, 2013.

(iv)    'Substantial Expansion' means increase by not less than 25% in the value of fixed capital investment in plant and machinery of an industrial unit for the purpose of expansion of capacity.

(v)      'Fixed Capital Investment' means investment in plant and machinery for the purpose of this scheme.

(vi)    'Micro, Small and Medium Enterprises' means enterprises as classified under sub-section (1) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006, as amended from time to time"

(vii)   In calculating the value of Plant and Machinery, the cost of industrial plant and machinery at site will be taken into account. Further explanatory note is at Annexure-II.

Scheme - 8.

The approval of claims of subsidy will be as follows:

(i)       A State Level Committee headed by Secretary, Industry will approve claims for subsidy. The composition of the State Level Committee is at Annexure-III.

(ii)      Operational Guidelines for approval of the claims under para (i) above shall be notified separately by the Govt. of India.

Scheme - 9. Negative list.

The list of industries not eligible for subsidy under Central Capital Investment Subsidy Scheme, 2013 is given at Annexure-IV.

Scheme - 10.

Expenditure on second hand plant and machinery and plant and machinery for which payment has been made in cash, would not be eligible for consideration of the subsidy.

Scheme - 11.

A unit can avail subsidy only under a single scheme, either from the Central Government or from the State Government. A unit seeking subsidy should certify that it has not obtained or applied for subsidy for the same purpose or activity from any other Ministry or Department of the Government of India or State Government.

Scheme - 12. Designated agency for disbursement of subsidy.

Himachal Pradesh State Industrial Development Corporation (HPSIDC) and State Industrial Development Corporation of Uttarakhand Limited (SIDCUL) shall be the designated agency for disbursement of Capital Investment Subsidy on the basis of the recommendation of the State Government in the states of Himachal Pradesh and Uttarakhand respectively. HPSIDC and SIDCUL shall furnish the Utilization Certificate to Ministry of Commerce & Industry, Department of Industrial Policy & Promotion against the funds released for disbursement of subsidy to the eligible units as per extant guidelines. HPSIDC and SIDCUL shall disburse the subsidy to the eligible industrial unit through ECS and RTGS system within 30 days from the date of release of funds by PAO to the account of nodal agency.

Scheme - 13. Rights of the Centre/State Government/Financial Institutions.

If the Central Government/State Government/Financial Institutions concerned is satisfied that the subsidy or grant to an industrial unit has been obtained by misrepresenting an essential fact, furnishing of false information or if the unit goes out of commercial production/operation within 5 years after commencement, the unit would be liable to refund the grant or subsidy after being given an opportunity of being heard.

Scheme - 14.

No owner of an industrial unit after receiving a part or the whole of the grant or subsidy will be allowed to change the location of the whole or any part of industrial unit or effect any substantial contraction or disposal of a substantial part of its total fixed capital investment within a period of 5 years after its going into commercial production/operation without taking prior approval of the Ministry of Commerce & Industry, Department of Industrial Policy and Promotion/State Government/Financial Institution concerned.

Scheme - 15.

100% physical verification of the actual establishment and working status of each of the units availing subsidy under the scheme will be done by State Government through District Industries Centres. District Industries Centres shall submit Annual Report to the Directorate of Industries and HPSIDC/SIDCUL about the functionality of the units. HPSIDC/SIDCUL shall thereafter submit Annual Report to the Department of Industrial Policy and Promotion about the functionality of the units availing subsidy under the scheme. After receiving the grant or subsidy, each industrial unit shall also submit Annual Progress Report to the State Government with a copy to Himachal Pradesh State Industrial Development Corporation (HPSIDC) and State Industrial Development Corporation of Uttarakhand Limited (SIDCUL) about its working for a period of 5 years after going into commercial production/operation.

Scheme - 16.

2% of outlay would be kept for monitoring and IEC including engagement of PMA.

Annexure-I

LIST OF THRUST INDUSTRIES FOR STATES OF HIMACHAL PRADESH AND UTTARAKHAND.

ANNEXURE-II

A.       Components to be included for computing the value of Plant & Machinery:

i.         Cost of Industrial Plant & Machinery including taxes and duties i.e. cost of mother production equipment used for carrying out manufacturing activities.

ii.        Cost of Productive equipment such as tools, jigs, dyes and moulds, insurance premium etc including taxes and duties.

iii.       Electrical components necessary for plant operation on the plant side from where meter is installed up to the point where finished goods is to be produced/dispatched (i.e. H.T. Motors, L.T. Motors, Switch Boards, Panels, Capacitors, Relay, Circuit Breakers, Panel Boards, Switchgears).

iv.       Freight charges paid for bringing Plant & Machinery and equipment from the supplier's premises to the location of the unit.

v.        Transit Insurance premium paid.

B.       Components which will not be considered for computing the value of Plant and Machinery:

i.         Loading and unloading charges

ii.        Sheds/buildings for Plant & Machinery.

iii.       Miscellaneous fixed assets such as DG sets, Excavation/Mining equipments, Handling equipments, electrical components other than those mentioned at A (iii) above.

iv.       Working Capital including Raw Material and other consumable stores.

v.        Commissioning cost.

vi.       Captive Power Plants

vii.      Storage equipments

viii.    Weigh bridge, Laboratory testing equipment

ix.       Erection and installation charges

PLANT & MACHINERY FOR A TYPICAL CEMENT PLANT

A.       Limestone crushing section

1.        Limestone crusher

2.        All crusher auxiliaries like feeder below limestone hopper, belt conveyor, dedusting equipments like cyclone & bag filters, screen etc.

3.        Limestone stacker & Reclaimer with belt conveyor, Additive(s) crusher & belt conveyor (as required) feeding to Raw Mill Hoppers

B.       Raw Material grinding section

1.        Raw mill (Ball Mill/VRM/Roller Press & Ball Mill)

2.        All raw mill auxiliaries like weigh feeder below hopper, separator, fans, bucket elevator, rotary air lock, air slides, magnetic separator, metal detector, FK Pump, Fluxo Pump, dedusting equipments like cyclone, bag filters, Bag house/ESP (common for kiln & mill) with fan etc.

C.        Raw meal extraction/kiln feed section

1.        All slide with blowers before & after raw meal silo, solid flow meter.

2.        Kiln feed bucket elevator/airlift

D.       Pyro processing section

1.        Rotary kiln with preheater cyclones & calciner.

2.        All auxiliary equipments like preheater fan, shell cooling fans, blowers, down comer duct and other ducts for carrying hot gases, fresh air dampers etc.

3.        Burner for Kiln & Calciner, Gas analysers, Temperature & pressure measuring equipment etc.

4.        Clinker Cooler.

5.        All cooler auxiliaries equipments like cooling fans, ESP & ESP fan, clinker crusher etc.

6.        Clinker conveying equipment like Deep pan conveyor (DPC)

7.        Coal crusher with all auxiliaries like bag filters, belt conveyor etc.

8.        Staker & Reclaimer for Coal including belt conveyor feeding to coal hopper

9.        Fuel Grinding Mill (Ball Mill/VRM) for Coal/petcoke/lignite/alternate fuels

10.     All coal mill/Fuel grinding mill auxiliaries including weigh feeder below raw coal hopper, separator, bucket elevator, rotary air lock, air slides, bag house, bag house fan booster fan, belt conveyor & screw conveyor, inertisation system etc. This also includes system for other fuel alternate fuel.

E.        Cement grinding section

1.        Cement mill (Ball Mill/VRM/Roller Press & Ball Mill)

2.        Cement Mill auxiliaries like weigh feeder below hopper, separator, bucket elevator, rotary air lock, air slides, FK Pump, Fluxo Pump, solid flow meter, bag house, Bag house fan, conveyors, Material extraction gates below Silo/stockpile, Gypsum crusher, Pneumatic Handling system for Flyash/Mechanical handling system for slag etc.

F.        Packing Section

1.        Packer & its auxiliaries such as belt conveyor, belt diverter, bucket elevator, screen etc.

2.        Truck loader & Wagon loader (if applicable), Bulk Loading & Packaging arrangement.

G.       Others

1.        Blowers, Pumps, compressors etc.

2.        Belt Coveyors (for all sections)

3.        De-dusting bag filters (across transfer points) with fans.

4.        Samplers

5.        Hot Air Generator if any

6.        Electrical and Control & instrumentation equipment along with software for plant operation (plant PLC) including HT & LT Motors, Dc Motors, Thyristor Panels, SPRS System, Capacitors etc.

H.       Exclusions:-

1.        Workshop equipment

2.        Laboratory equipments

3.        Equipment for power distribution other than those at G (6) above

4.        Equipment for water supply

5.        Fire Fighting Equipment

6.        Mining machinery

7.        D.G. Sets for Plant/captive power plant

8.        Weigh Bridge, Railway Siding, Locomotives, Truck Tripplers etc.

9.        Plant Building (like crusher building, mill house etc.), Auxiliary building (like MCC rooms, compressor house etc) and Non Plant Buildings (like Store, Administrative building, canteen etc.)

10.     Storage Building like Silo, Hoppers, Stockpiles.

PLANT & MACHINERY FOR A STEEL AND A ROLLING MILL (SECTION WISE)

A.       MELTING SECTION

1.        Induction Furnaces & Electric Arc Furnaces with all electrical installations, gadgets, control panels, meters, cables, busbars, emergency water system, main water cooling system etc

2.        Casting Section: Ladles, oil burners, gas purging system, ladle refining furnace, if any, vacuum degassing units, if any, continuous casting unit with motors, pumps, withdrawal system, DM water system, water treatment plant, conveyor belts, etc.

3.        Auxiliary Equipments & Cranes.

4.        Workshop Machines

5.        Electrical Equipments (HT Motor, LT motor, Switch Board, Cap acitors, Relay Circuit Breakers, Panel Boards, Switch Gears).

B.       ROLLING MILLS

1.        RHF (Re-heating Furnance)-all items including Sheets, Refractory, Pusher Motors, Burners, Chimney, recuperator, APCD etc. as defined in Plant & Machinery.

2.        Roughing Stand including motors, repeaters (if any), mechanization (if any), bearings, cooling systems etc. which are defined as Plant & Machinery.

3.        Intermediate stands (as above)

4.        Finishing stands (as above)

5.        Quenching system (for TMT)

6.        Shears, Pinch Roll

7.        Cooling Bed Systems

8.        Crane

9.        Workshop Machines (Lathe, Shapere, Drils, Grinders, Milling Machine, Templates, measuring equipments like screw gauge, vernier etc.)

10.     Auxiliary equipments (included as Plant Machinery)

11.     Electrical equipments (Current transformers, circuit breakers, panel boards, motors, reactors, Relay panels, switch gears, starters, digital meters, etc.)

12.     Other material handling equipments (within the Rolling Mills furnace area for hot metal transfer)-(Conveyor which lead to mechanization/automation, chain pulley blocks etc.)

13.     Water System equipments and towers-(Water settle tanks for removal of metallic contamination, oil, grease, etc., DM water plant, if any. Water pumping units, water cooling power/system etc.

14.     Coal Pulverizer system including Pipeline for delivery

Definition of Plant & Machinery for Eco-Tourism.

(a)      In the case of Houseboats, the entire houseboat project along with its fitting and furnishing should be treated as plant and machinery.

(b)      In the case of hotel, resorts and guest houses (Laddakh only), the investment in plant and machinery is negligible in comparison to the cost of land and building. Therefore, building should also be included as a part of plant and machinery. Besides this, the items given at (c) below may be taken into account for calculating the value of plant and machinery

(c)      An illustrative list of plant and machinery/equipment is given below:

1.        Filtration plant for swimming pool.

2.        Water purification plant.

3.        Hot water boiler and room heating equipment (fixed)

4.        Water softening plant

5.        Fume extraction and ventilation plant.

6.        Air conditioning plant.

7.        Cold Storage equipment.

8.        Laundry equipment.

9.        Cooler and refrigeration equipment.

10.     Bakery equipment

11.     Sewage disposal plant

12.     Electrical installations

13.     Tents for camping

14.     Kitchen equipment, cooking range, dish washer, working table.

15.     Fire-fighting equipment (fixed)

16.     Telephone equipment/exchange.

17.     Lifts

18.     Safe deposit lockers

19.     Tube wells along with pumping sets and lines within the campus

20.     Goods carrier exclusively needed for the hotel.

21.     Projectors and other equipment's for conference hall (fixed).

22.     Lighting equipment.

23.     Adventure and water sports equipment's.

(d)      For adventure & leisure sports, amusement/entertainment parks, cable car, ropeways and spa, the entire cost of items and components (excluding land) essential for commissioning the project. Definition of admissible items under adventure & leisure sports etc. exclude additionalities such as conference room, auditorium etc.

ANNEXURE-III

Composition of State Level Committee

ANNEXURE-IV

NEGATIVE LIST OF INDUSTRIES FOR HIMACHAL PRADESH AND UTTARAKHAND.

Serial No. 5; Reproduction synthesis not allowed as also downstream industries for sugar.