CENTRAL INTEREST SUBSIDY SCHEME, 2012 - F. NO. 1(10)2012-SPS - Income Tax

NOTIFICATION DATED 3-10-2013 The Government of India is pleased to notify the following scheme of Interest Subsidy on Working Capital Loan for Industrial units in the state of Jammu Kashmir as J K Package-II with a view to accelerating the industrial development in the state. 1. Short Title:- This scheme may be called the Central Interest Subsidy Scheme, 2012. 2. Commencement and duration of the Scheme: It will come into effect from the 15th June, 2012 and remain in force upto and inclusive of 14-6-2017. 3. Applicability of the Scheme: The scheme is applicable to all new industrial units in notified areas as per Annexure-I and also to specified Thrust Industries outside the notified areas as per Annexure-II. 'New Industrial Unit' means an industrial unit which commence commercial production/operation on or after 15th June 2012. 4. However an industrial unit in Textile sector in Jammu Kashmir would have choice to apply for subsidy either under "Technology Upgradation Fund Scheme" (TUFS) of Ministry of Textile or under the Special Package administered by DIPP. 5. Extent of admissible subsidy: All eligible industrial units in the state of Jammu Kashmir shall be given an interest subsidy to the extent of 3% on the average of actual daily Working Capital loan given to them by the Scheduled Banks or Central/State financial institutions, for a maximum period of five years, from the date of commencement of commercial production/operation provided that the claimant unit has not been declared as NPA (Non-Performing Asset). 6. Eligibility period : The subsidy will be available for the duration of the scheme to such industrial units, which have pre-registered and commence commercial production/operation before 14-6-2017, for a period of five years from date of commencement of commercial production/operation. The unit should file its claim as per prescribed procedure at District Industry Centre concerned within one year from the date of commencement of commercial production/operation. 7. 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. 8. The approval of the claims for subsidy will be as follows: A State Level Committee headed by Secretary, Industry will approve claims for subsidy. The composition of the State Level Committee is at Annexure-III . 9. Negative list The industrial units which manufacture the under mentioned products will not be eligible for subsidy under this Scheme. ( i ) Cigarettes/cigars of tobacco, manufactured tobacco and substitutes, distillation/brewing of alcoholic drinks and manufacture of branded soft drinks and its concentrates. ( ii ) Weapon or ammunition. ( iii ) Pan Masala as covered under Chapter 21 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986). ( iv ) Plastic Carry bags of less than 20 microns as specified by Ministry of Environment Forests Notification No. S.O. 705(E) dated 2-9-1999 and S.O.698(E) dated 17-6-2003. 10. Designated Agency for disbursement of Subsidy: Jammu Kashmir Development Finance Corporation (JKDFC) shall be the designated agency for disbursement of interest subsidy on the basis of the recommendation of the state Government. JKDFC will disburse subsidy through ECS and RTGS system only. 11. Procedure for claiming Interest Subsidy: Industrial units eligible for subsidy under the scheme will get themselves registered with the District Industry Centre concerned prior to the date of commencement of commercial production/operation. The unit is required to submit a certificate from the lending agency as per the Annexure-IV at the time of claiming of the subsidy under the scheme. The claim of subsidy shall be submitted by industrial units within one year of the date of commencement of commercial production/operation. 12. Procedure for disbursement of Interest Subsidy: The State Level Committee would examine each case to decide whether it qualifies for the grant of subsidy and also about the quantum of subsidy. The subsidy will be disbursed to the unit by JKDFC on the recommendation of the State Level Committee. 13. Rights of the Central/State Government/JKDFC: If the Central Government/State Government/JKDFC is satisfied that the subsidy or grant to an industrial unit has been obtained by misrepresentation of the essential facts, furnishing of false information or if the unit goes out of commercial production/operation within 5 years after having availed the subsidy under the scheme, the Central Government/State Government/JKDFC may ask the unit to refund the grant or subsidy after giving opportunity to the concerned to be heard. 14 . No owner of an industrial unit will be allowed to change the location of the whole or any part of the 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 of receiving a part or the whole of the grant or subsidy under the scheme without taking prior approval of the Ministry of Commerce Industry, Department of Industrial Policy Promotion/State Government/JKDFC. 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. Districts Industries Centres shall submit annual report to the Directorate of Industries and JKDFC about the functionality of the units. JKDFC 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 Jammu Kashmir Development Finance Corporation (JKDFC) about its working for a period of 5 years after going into commercial production/operation. ANNEXURE-I List of Existing Industrial Estates. Kashmir Division Sl. No. Name of District Name of Industrial Estate 01. Srinagar BAMK (Bagi Ali Mardan Khan Zakura Zainkote Khonmoh Shaltaing 02. Ganderbal Duderhama Ganderbal 03. Budgam Barzulla Rangreth 04. Anantnag Anantnag Anchidora Bijbehara 05. Kulgam Kulgam 06. Pulwama Pulwama Chatpora IDC Lassipora 07. Shopian Gagran 08. Baramulla Baramulla Sopore Food Park Doabgah 09. Bandipora Sumbal 10. Kupwara Branwara Chotipora 11. Leh Leh Phyang Khaltsi 12. Kargil Chanchik Khurbathang New Industrial Estates (Under Development) in Kashmir Division. 01. Anantnag VessuAnantnag ShestergamMehmoodaBaghDuru 02. Pulwama TakiaRazak Shah Tral Khrew near Khanmoh 03. Kulgam AshmujiKulgam MalwanKulgam Kulgam Phase II 04. Budgam Rangreth Phase-II Ompora 05 Kupwara Chotipora (Handwara) Radbugh 06. Shopian Aglar 07. Baramulla BangilTangmarg 08. Leh Phyang Khaltsi 09. Kargil Khrbathang (Changrathang) List of Industrial Estates Jammu Division Sl. No. Name of District Name of Identified Estate 01. Jammu Digiana Jammu Cantt. Gangyal Birpur Baribrahmna EPIP Kartholi Akhnoor 02. Samba Samba IGC Samba Phase-III 03. Udhampur Udhampur H D BattalBallian 04. Reasi Reasi (Gran) 05. Kathua Kathua Hiranagar Billawar IID Govindsar Ceramix Ind. Complex 06. Rajouri Kheora 07. Poonch Poonch 08. Kishtwar Sangrambata 09. Doda Dandi (Bhaderwah) New Industrial Estates (Under Development) in Jammu Division Sl. No. Name of District Name of Industrial Estate 01. Kathua Ghatti Govindsar Phase I-II DambraBillawar Hiranagar (ChakBulananda) 02. Rajouri ThandiPani ( Silk Cluster) Lamberi 03. Udhampur Majalta 04. Doda Beoli 05 Reasi Nimba 06. Poonch Surankote 07. Samba IGC Samba Phase-III ANNEXURE - II Thrust Industries included under J K Industrial Policy Sl.No. Activity/Industry 1. Food processing/Agro based Industries :- a . Sauces, Ketchup etc. b . Fruit juices and Fruit pulp c . Jams, Jellies, Vegetable Juices, Puree, pickles etc. d . Processing of fresh fruits, Fruit waxing, packing, grading. e . Flour mills and Rice Mills. f. Spice grinding. g. Pasteurization/Processing of milk and other dairy products. 2. Leather processing and Leather goods. 3. Tissue culture and Mushroom culture, Compost making , Dairy farming. 4. Silk reeling, yarn and yarn spun from silk waste, Woven fabrics of silk or silk waste. 5. Wool and woven fabrics of wool, Manufacturing of woolen blanket. 6. Woven fabrics of cotton. 7. Floriculture , Processing of Aromatic and medicinal plant, Green house. 8. Computer hardware /Electronics (integrated circuit and micro assemblies). 9. Sports goods and articles and equipment for general physical exercise. 10. Auto ancillaries . 11. Exploration of minerals and minerals based industry. Gypsum, Plaster of Paris with chip boards, Granite and Marble cutting and finishing, cutting and polishing of gems and making of jewellary. 12. Eco tourism :- Hotels, Houseboats, Resorts, Adventure and leisure sports, Amusement parks, Cable car, Guest houses. 13. Handicrafts and Handlooms. 14. Precision engineering. 15. Packing industry :-items like adhesive tapes, strapping rolls, pet bottles, Card board corrugated boxes, plastic container caps, HDPE bottles, drums, barrels, cans, ROPP caps for bottles, Woven sacks, HDPE fabric. 16. Bottling of mineral water . 17. Stationery items like note book, Pen, Pencils, Erasers, Sharpeners, Geometry boxes etc. 18. Wood based industry :- Manufacturing of plywood/Ply board/Core veneer/Pencil Blocks/Slates/Joinery/Furniture/Paneling. ANNEXURE -III Composition of State Level Committee 1. Secretary, Department of Industry Commerce, J K Kashmir Chairman 2. Director, Industries and Commerce, Kashmir Member Secretary* 3. Director, Industries and Commerce, Jammu Member Secretary* 4 Director, Accounts and Treasuries Member 5. MD, Jammu Kashmir Development Finance Corporation Member 6. Financial Advisor/CAO, I C Department Member 7. Nominee of DIPP Member 8. President, Federation Chamber of Industries, Member 9. Chairman, Federation of Industries, Jammu, Member *As applicable Annexure-IV Proforma Certificate cum Recommendation of Scheduled Banks/Central or State Financial Institutions. (Certificate to be given on letterhead of banks/Financial Institutions for claiming interest subsidy under Central Interest Subsidy Scheme 2002 for the state of J K.) TO WHOM IT MAY CONCERN This is to certify that M/s. . . . . . . . . . . . . . . . . . . . . (Name and address of the Industrial Unit) had been sanctioned an amount of Rs. . . . . . . . (amount in figures) [Rupees . . . . . . . .. . . . . . . ] (amount in words) as credit limit (hereinafter referred to as Credit Limit) towards its working capital requirement by our bank i.e.. . . . . . . . . . . . . . (Name and address of the bank) for the period from. . . . . . . . . . . . . . . . . to. . . . . . . . . . . . . . . . . vide this bank sanction letter No. . . . . . . . . . . . . . . . . . dated . . . . . . . . . . . . . . . . .. The maximum actual drawl by the Industrial unit on any particular day during the period from . . . . . . . . . . . . . . . . . to . . . . . . . . . . . . . . . . . , against the credit limit is Rs. . . . . . . . . . . . . . . . . . (amount in figure) (Rupees . . . . . . . . . . . . . . . . . ) (amount in words) and the average daily drawl for the above mentioned period is Rs. . . . . . . . . . . . . . . . . . (Rupees. . . . . . . . . . . . . . . . . ) (amount in words). The total interest charged by the bank on working capital utilization is Rs. . . . . . . . . . . . . . . . . . Rupees . . . . . . . . . . . . . . . . . ) (amount in words) which is @ . . . . . . . . . . . . . . . . . % per annum. Having examined out record and the materials furnished by the industrial Unit, this is to certify that unused overdraft, fixed deposit, advance for acquisition of fixed assets, loan and advances by proprietors/partners, directors/Members of HUF, long terms loans including interest thereon and investments, have not formed part of the working capital utilization and that all drawls against the Credit Limits have been utilized for the purpose for which they were sanctioned and there has been no 'diversion of funds and/or " siphoning of funds" by the Industrial Units. It is therefore recommended that the industrial unit is eligible for grant of 3% per annum interest subsidy of Rs.. . . . . . . . . . . . . . . . . (amount in figures) [Rupees . . . . . . . . . . . . . . . . . . (amount in words) under the Central Interest Subsidy Scheme 2002 for the period from. . . . . . . . . to . . . . . . . . . Signature of the Bank Manager Date: Name ( ) Official Seal [F. NO. 1(10)2012-SPS]