Growth Oriented Concessions

• Sales/Commercial Tax exemption upto 250% of capital investment in fixed assets for a period of 7 years or deferment upto 300% for a period of 9 years.
• No capping on quantum of tax concessions for Thrust Sector industries having at least Rs. 1 crore investment in plant & machinery
• Units set up in 'No Industry Blocks' to get same concessions as units in category 'C' districts.
• Additional investment on expansion by existing units is eligible for commercial tax concessions as available to new units
• Additional concessions are available for certain categories of units :

  Those in MPAKVN Growth Centres.

  • Units set up by women entrepreneurs, SC & STs and OBCs.
  • New units in cooperative sector with plant and machinery investment of at least Rs. l crore and membership of at least l00 persons.
  • l00% EOUs.
  • Units being set up by NRIs with investment of at least Rs. 2 crores and NRI investment at least 50% of promoter's equity.
    

Tax Concessions

• Maximum benefit is limited to percentage of capital investment in fixed assets. There is no capping on quantum of tax concessions for Thrust Sector industries with at least Rs. one crore investment in plant & machinery
• Units set-up in "No Industry Blocks" in any district of the State will get the same commercial tax concessions as those set-up in category 'C' districts
• Concessions are available on finished products, by-products, waste products, raw materials, incidental goods and packing material.
• Payment of tax is deferred for a period of five years.
  
  

  Entry Tax

  Industrial Units to exempt from payment of entry tax on raw material, incidental and capital goods for 5 years from the date of first purchase. Such concessions are available for 11 years in case of units set up by NRIs and 100 % EOU's

  Additional Concessions

  Special concessions in terms of exemptions or deferment are further available for certain categories.

  A unit can get special concessions upto an additional 5 years.

  Particulars	Additional  Concession Period
  No Industry Block in category 'C' districts	1 Year
  Units in Madhya Pradesh Audhyogik Kendra Vikas Nigam  (MPAKVN) Growth Centres	2 years
  Units set up by women entrepreneurs, persons belonging to scheduled castes, scheduled tribesand backward classes	1 year
  New industrial units in cooperative sector, with investment of at least Rs. one crore in plant  &  machinery and having a membership of at least one hundred persons
  100% Export Oriented  Units   Commercial Tax 2 Years Entry Tax 8 Years
  **Units  being  set  up by NRIs with investment of atleast   Rs. two crores and  NRI investment  being  atleast 50% of   promoter equity can also avail similar concessions).

  Additional investment on expansion by existing units will be eligible for commercial tax concessions Ad as available to new units . This facility is available to units with investments of more than Rs.10 lakhs and is conditional on extent of additional investment being made.

  The new policy contains many other special incentive packages. For larger projects, customized incentive packages can be developed.

Incentives for Power Generation

Enhanced Power Availibility

 All possible steps are being taken to reduce both the quantitative and qualitative shortfall in the supply of power. Here too the private sector is to be greatly encouraged to participate in increasing the generation capacity.

• Grant permission within 45 days to entrepreneurs for captive generating units upto 25 MW capacity
• For units of higher capacity, permission from Central Electricity Authority is necessary
• New industries to be given a power connection within 30 days of completing all formalities and completion of line extension work.
• l00% EOUs and continuous process units to be exempted from power cuts as far as possible.
• Special facilities for entrepreneurs setting up power units based on hydro (upto 3 MW capacity) or non-conventional sources of energy

Incentives For Power Generation
(Through Non-conventional Sources of Energy)

Any organisation installing a power generating unit based on non-conventional energy sources like mini-micro hydel projects, wind energy, bio-energy, solar energy etc. in Madhya Pradesh is eligible for incentives briefly explained here. The unit may be set up in the private sector or as a joint sector project.

The highlights of the scheme are as follows:

• No restriction on generation capacity except mini-micro hydel projects upto 3 MW capacity
• Power may be used at the point of generation or at any other place by the generating party or it may be sold to M P Electricity Board @ Rs. 2.25 per. unit or to a third party (on mutually agreed rates) provided it is already a H.T consumer of the Board.
• Power may be wheeled from the point of generation to any other place for proprietary use or for selling to the third party through MPEB's transmission/ distribution system on payment of two percent wheeling charges.
• Electricity duty exemption for five years
• Demand - cut up to 30 percent of the installed capacity of non-conventional energy unit if the generating party is a consumer of MPEB and establishes the Non-conventional unit for its own use
• The transmission/distribution lines and equipment required till the nearest grid sub-station will be maintained by MPEB at cost, but will need to be provided by the party.
• Government land will be given on lease to the party. In case of non-availability of government land, private land will be acquired by the government and made available to the party at the acquisition cost

Sales Tax Benefits

(on power projects using non-conventional resources)

• Plant and Machinery installed for generation of power shall be exempted from State sales tax
• The generating party or any of its industrial units or the third party user will get sales tax exemption or deferment or composite benefit on goods manufactured and sold up to the eligible investment on the non-conventional power generation system for a maximum period of six years from the date of commencement of generation at the non-conventional power generation system or the date on which the cumulative quantum is achieved, whichever is earlier.
• Under the scheme of sales tax deferment or composite benefit, the amount deferred will be recovered in equal annual installments beginning from the next financial year after the unit has exhausted its eligible amount.

Such power generating units will be treated as industries and all the concessions available to new industrial units will be applicable.

Special Subsidies for Small Scale Industries

In addition to general tax concessions & other benefits, special subsidies exist for SSIs-
 

1. Capital Subsidy

The following Capital subsidies will be available to the SSIs:-

2.Interest Subsidy

Subsidy amounting to 4% of the interest rate subject to a ceiling of Rs.25,000 per annum on the loan taken from Banks/Financial Institutes available to all industrial units set up in backward districts.

SC / ST entrepreneurs entitled to 6% subsidy on the interest rate without any ceiling
 

3.Reimbursment of the Project Report Cost

Reimbursement upto 0.5% to 1% of the total expenditure occured on the preparation of the Project report of industries will be provided. Maximum reimbursement will be upto Rs.3.0 lakhs.

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