Overview of the Industrial and Investment Policy of Assam, 2019

The **Industrial and Investment Policy of Assam, 2019** is the cornerstone of the state's efforts to promote industrialization and attract both domestic and foreign investment. It aims to create a vibrant industrial ecosystem by providing attractive incentives, streamlining regulatory processes, and developing robust infrastructure.

Key Objectives of the Policy:

• Promote Investment: Attract significant investments in manufacturing and service sectors, including agro-processing, textiles, handicrafts, IT & electronics, and tourism.
• Balanced Regional Development: Encourage industrial growth in underdeveloped and backward areas to ensure equitable economic development across the state.
• Employment Generation: Create large-scale employment opportunities, particularly for youth and women, by promoting Micro, Small, and Medium Enterprises (MSMEs).
• Ease of Doing Business (EoDB): Enhance Assam's position in the EoDB rankings by simplifying procedures, offering single-window clearance, and reducing compliance burdens.
• Leverage Strategic Location: Utilize Assam's geographical advantage as a gateway to Southeast Asia under the "Act East Policy."
• Promote Green Industries: Encourage sustainable manufacturing practices and units opting for renewable energy sources and eco-friendly technologies.
• Skill Development: Foster a skilled workforce to meet industrial demands.

Focus Sectors for Industrial Investment

The policy identifies several thrust sectors with high growth potential and strategic importance for Assam:

• Agro and Food Processing Industry (fruits, vegetables, tea, spices, aquaculture)
• Handloom, Handicrafts, and Textiles (especially silk)
• Tea and Bamboo Industry
• Plastic and Petrochemical Sectors
• Pharmaceutical and Herbal Products
• Electronics and IT/ITeS (Information Technology/IT Enabled Services)
• Renewable Energy (Solar, Bioenergy)
• Logistics, Warehousing, and Cold Chains
• Tourism and Hospitality
• Education and Healthcare Services
• Rubber Industry

Key Fiscal Incentives for Industries in Assam

To make Assam attractive for investors, the policy offers a wide range of financial incentives:

1. Capital Investment Subsidy:

• Manufacturing Units: Up to 30% subsidy on the value of plant and machinery for qualified businesses, with certain ceilings.
• Micro & Small Enterprises: Enhanced capital subsidies compared to larger units.
• Specific Locations: Additional incentives for units set up in Growth Centres, IIDCs, Industrial Estates/Parks.

2. Interest Subsidy:

• Interest reimbursement of 3-5% on term loans taken for capital expenditure for a specified period (e.g., 5-10 years).
• Special provisions for MSMEs, including on working capital loans.

3. GST Reimbursement:

• Eligible units are entitled to reimbursement of State Goods and Services Tax (SGST) for a period of up to 7 years.
• **Micro Enterprises:** Up to 15 years, subject to a maximum of 200% of Fixed Capital Investment (250% for units in parks).
• **Small Enterprises:** Up to 15 years, subject to a maximum of 150% of Fixed Capital Investment (180% for units in parks).
• **Medium & Large:** Reimbursement as per policy norms.

4. Power Subsidy:

• Industries receive subsidies on power tariffs (e.g., ₹2.00 per unit consumed for 5 years).
• Reimbursement on electricity duty for a specified time.
• Subsidies on the cost of generating sets (e.g., 50% of cost up to ₹20 lakhs).
• Subsidy for drawal of power lines to the unit premises (e.g., 25% of cost up to ₹10 lakhs for Micro & Small units).

5. Employment Generation Incentive:

• A subsidy of up to ₹20,000 per employee for units hiring local youth.
• Support for manpower development, covering training costs for local persons employed.

6. Stamp Duty & Registration Fee Reimbursement:

• 100% reimbursement of stamp duty and registration fees for land acquired for industrial purposes, up to a ceiling (e.g., ₹25 lakhs).
• Also applicable for setting up private industrial parks/estates.

7. Quality Certification & Technical Know-how Support:

• Support for obtaining quality certifications like ISO/BIS.
• Subsidy on fees paid for procurement of technical know-how from recognized research institutions (e.g., 75% up to ₹1 crore).

8. Environmental Compliance Assistance:

• Subsidy (e.g., 50%) on capital cost for setting up Effluent Treatment Plants (ETP) and other pollution control equipment (e.g., up to ₹25 lakhs).

9. Marketing Assistance:

• Support for participation in trade fairs and expos for MSMEs.
• Schemes like 'Biponi Scheme' provide financial assistance for stall rent and daily allowances for participation in exhibitions/trade fairs.

10. Financial Assistance for MSMEs Listing in Stock Exchange:

• To encourage MSMEs to list on BSE & NSE, the government provides a subsidy (e.g., 30% of public issue expenses, up to ₹5 lakhs).

Non-Fiscal Incentives & Infrastructure Support

Beyond financial incentives, Assam offers crucial non-fiscal support to enhance the business environment:

• Single Window Clearance System: A dedicated system for faster approvals, online applications, and simplified compliance for new and existing businesses. The Industries & Commerce Department and Assam Industrial Development Corporation (AIDC) play key roles.
• Land Allotment: Priority in land allotment for eligible businesses within industrial estates/parks. Identification of suitable industrial land in each district.
• Industrial Infrastructure: Development of modern industrial estates, parks, and Integrated Industrial Development Centres (IIDCs) with essential facilities (e.g., Bodoland Industrial Park, North East Mega Food Park, Tea Park). Encouragement for private sector development of industrial infrastructure.
• Skill Development: Various programs and institutions to bridge the skill gap and create a ready workforce for industries.
• Promoting Startups: Startups registered under the Assam Startup Policy are eligible for funding, incubation support, and policy incentives (e.g., through "Assam Startup - The Nest").
• Assistance for Sick Units: Provisions for revival and rehabilitation of sick industrial units.
• Facilitation & Advisory: Investment promotion agencies like AIDC and Invest India provide guidance, site location assessment, and issue resolution support.

Key Government Agencies and Portals for Industrial Investment

Entrepreneurs and investors should engage with the following official bodies and portals:

• Department of Industries & Commerce, Government of Assam: The nodal department for industrial policy implementation.
  • Official Website: industries.assam.gov.in
• Assam Industrial Development Corporation (AIDC) Ltd.: A key agency for promoting industrial development, managing industrial estates, and processing various incentives.
  • Official Website: www.aidcltd.com (Check "Policies" and "Udyog Sahayak" sections)
• Sewa Setu Portal, Government of Assam: An e-governance platform for various government services, including some industrial clearances.
  • Portal: sewasetu.assam.gov.in
• National Single Window System (NSWS): Facilitates clearances and approvals from multiple central and state departments, including Assam.
  • Portal: www.nsws.gov.in
• Invest India: The national investment promotion and facilitation agency, which also provides information on state-level policies and opportunities.
  • Website: www.investindia.gov.in (Search for Assam specific policies)

Important Considerations for Investors

• Policy Validity: Industrial policies have a defined validity period. Always refer to the latest published policy document for precise details on eligibility, quantum of incentives, and application procedures.
• Eligibility Criteria: Each incentive has specific eligibility criteria regarding the type of unit (new/expanding), investment size, sector, location, and employment generation.
• Application Process: Most applications for incentives are routed through the online portals (AIDC, Sewa Setu, NSWS). A Detailed Project Report (DPR) is often required.
• Local Employment: Strong emphasis is placed on generating employment for local residents, which often comes with additional incentives.
• Environmental Compliance: Units adopting green technologies and ensuring environmental compliance receive additional support and faster clearances.

Assam's proactive approach through its comprehensive Industrial and Investment Policy and robust incentive framework aims to make it a preferred destination for businesses looking to invest in the Northeast region of India.