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

NOTIFICATION DATED 3-10-2013 The Government of India is pleased to make the following scheme of Central Grant or Subsidy for Industrial units in the 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 Capital Investment 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 14.06.2017. 3. Applicability of the Scheme:- The scheme is applicable to all new industrial units and existing industrial units on their substantial expansion in notified areas as per Annexure-I and also to specified Thrust Industries outside the notified areas as per Annexure-II. 4. However an industrial unit in Textile sector in Jammu Kashmir would have the 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 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 of 30% of the investment of plant machinery subject to a ceiling of Rs. 3.00 crore and Rs. 1.50 crore for manufacturing and service sector respectively. 6. 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 14-06-2017. 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. 7. Definitions:- ( i ) 'New Industrial Unit' means an industrial unit which commences commercial production/operation on or after 15th June, 2012. ( ii ) 'Existing Industrial Unit' means an industrial unit which has commenced commercial production/operation before 15th June, 2012. ( iii ) '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. ( iv ) 'Fixed Capital Investment' means investment in plant and machinery for the purpose of this scheme. ( v ) '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" ( vi ) 'Plant Machinery': In calculating the value of Plant Machinery, the cost of industrial plant machinery at site will be taken into account. Further explanatory note is at Annexure-III . 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 upto Rs.1.50 crore. The composition of the State Level Committee is at Annexure-IV ; and ( ii ) For claims more than Rs.1.5 crore the SLC will recommend the proposal for consideration of the Empowered Committee chaired by Secretary, Department of Industrial Policy Promotion. The constitution of the Empowered Committee is at Annexure-V . ( iii ) Broad guidelines for approval of the claims under para (i) above shall be notified by the Govt. of India. 9. Negative list The industrial units which manufacture the under mentioned products, will not be eligible for benefit under the Central Capital Investment Subsidy Scheme, 2012: ( 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 02-09-1999 and S.O.698(E) dated 17-06-2003. 10. Expenditure on second hand plant and machinery and plant and machinery where cash payment has been made for procurement, would not be eligible for consideration of the subsidy. 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. 12. Designated agency for disbursement of subsidy Jammu Kashmir Development Finance Corporation (JKDFC) shall be the designated agency for disbursement of Capital Investment Subsidy on the basis of the recommendation of the State Government. JKDFC 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. JKDFC shall release the subsidy to the eligible industrial unit through ECS and RTGS system only. 13. Procedure for claiming Capital Investment Subsidy The procedure for claiming subsidy under this scheme would be as follows:- ( i ) 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. ( ii ) In case of Bank financed units, the Bank shall certify the value of plant and machinery for the project as per scheme guidelines. ( iii ) In case of self-financed units, the project would be appraised by JKDFC after registration by the unit. JKDFC would also certify the value of plant and machinery as per scheme guidelines. ( iv ) Unit should submit their claim within one year from the date of commencement of commercial production/operation. The industrial units registered before 15-06-2012 under the erstwhile scheme of subsidies and have filed the claims within one year of the date of commencement of commercial production/operation would be eligible for subsidies under erstwhile scheme. Units which were registered after 15-06-2012 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 December, 2013. 14. Procedure for disbursement of Capital Investment Subsidy The procedure for disbursement of Capital Investment Subsidy shall be as follows :- ( i ) The State Level Committee should examine each case to decide the eligibility of the unit and the quantum of subsidy. ( ii ) The State Government shall ensure complete documentation in respect of claims approved by SLC under the scheme before forwarding the same to JKDFC for disbursement. ( iii ) If a unit is unable to complete documentation in respect of its claim approved by SLC within three months of SLC meeting, the claim shall be put in abeyance and will be reconsidered in its next meeting for final decision. ( iv ) JKDFC will undertake pre scrutiny of 10% claims before disbursement of subsidy. ( v ) While making payments, JKDFC will consider the principle of oldest claim of oldest SLC first for disbursement of subsidy. 15. In respect of units financed by Financial Institution, the appraisal report of the Financial Institution would be taken into account while computing the value of Plant Machinery. 16. 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. 17. 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 18. 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 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 Kashmir 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 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 mouldsetc including taxes and duties and insurance premium. 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, dedustingequipments 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, dedustingequipments 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 alongwith 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 -IV Composition of State Level Committee 1. Secretary, Department of Industry Commerce, J K Chairman 2. Director, Industries and Commerce, Kashmir Member Secretary* 3. Director, Industries and Commerce, Jammu Member 4 Director, Accounts and Treasuries Secretary* 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, Kashmir Member 9. Chairman, Federation of Industries, Jammu Member *As applicable ANNEXURE -V Composition of Empowered Committee 1. Secretary, DIPP Chairman 2. Secretary, D/o Expenditure Member 3. Representative of Planning Commission Member 4. Secretary of Ministry administratively concerned with the industrial activity of the claimant unit Member 5. Addl. Secretary Financial Advisor, DIPP Member 6. Chief Secretary/Commissioner (Industry) Jammu Kashmir Member. 7. MD, Jammu Kashmir Development Finance Corporation Member 8. Joint Secretary DIPP Member Secretary 9. State representative of concerned Financial Institution Member 10. Chief Controller of Accounts, DIPP Member [F. NO.1(10)2012-SPS]