Department of Industries & Commerce

Government of Tripura

State Incentive Scheme:

The State Govt. has also announced new incentive package called “Tripura Industrial Investment Promotion Incentives Scheme, 2017”, effective from 01.04.2017. Under this Policy, the following incentives are provided for setting up industries in Tripura:

1. Incentives/Subsidies under TIIPIS,2017:

a) State Capital Investment Subsidy @30% on Fixed Capital Investment (with additional subsidy @2.5% to ST, SC and Women Enterprises), subject to a ceiling of Rs.60 Lakhs per unit. For thrust sector unit capital investment subsidy @40% on Fixed Capital Investment within the overall ceiling of Rs.70 lakhs.

1. Industrial Promotion Subsidy (reimbursement of GST) subject to an overall ceiling of Rs.60 Lakhs per annum per enterprise. The aggregating limit of entitlement of an enterprise for 5 years shall not be exceed to 100% value of investment made in plant and machinery.
2. 25% Reimbursement of Power Charges, maximum of Rs. 12.00   Lakhs per annum per enterprise.
3. 4% Reimbursement of Interest on Working Capital loans maximum of Rs.3.00 Lakhs per annum.
4. Reimbursement of Standard Certification Charges/ fees/ expenses to eligible enterprises in 10 selected areas issued by National and Inter-national Bodies.
5. 15% Procurement Preference to Local industrial enterprises subject to 20% value addition.
6. 100% Exemption from the payment of Earnest Money and Security Deposits on tenders floated by the State Govt./Departments/Agencies.
7. Employment Cost subsidy under Thrust Sector towards EPF and ESI contribution on employment of 20 or more persons skilled and semi-skilled workers who are domiciled of the State.
8. 100% reimbursement on fees paid for CGTMSE coverage on loans granted by Banks/ NBFCs.
9. Export Promotion Subsidy @10% on value of export of goods with ceiling of Rs.20.00 Lakhs per annum.
10. Subsidy for participation in fares and exhibition (Thrust sector only) @50% of actual expenditure for one person and transportation cast of goods for display/sale with maximum celing of Rs.50000/- per annum (max.of 2 fares).

2. Special Incentives to industrial Enterprises continue to operate for 5 years are    provided for a further period of 5 years which are as follows:

1. Capital Investment Subsidy on substantial expansion @40% or 30%, maximum Rs.30.00 Lakhs and Rs.25.00 Lakhs for Thrust Sector and other than thrust sector respectively subject to increase in the value of fixed capital investment by not less than 25% for the purpose of expansion of capacity/ modernization/ diversification.
2. Industrial Promotion Subsidy @ 25% of GST actually paid(net of input tax) subject to the condition that the aggregate payment of subsidy from the date of commencement of production shall not exceed 100% of investment in plant and machinery.
3. Partial Reimbursement of Power charges @ 15% of actual power charges paid after 5 years of operation, maximum Rs.6.00 Lakhs for enterprises with employment of 20 to 50 persons, Rs.9.00 Lakhs with employment of 51 to 100 persons and Rs.12.00 Lakhs with employment of more than 100 persons.
4. Employment Cost Subsidy with employment of 20 or more persons @50% of employer contribution paid towards EPF and ESI after 5 years of operation.
5. Wages Subsidy on employment of 20 or more persons @ 20% of actual wages paid, maximum Rs.2.50 Lakhs per annum after 5 years of operation.

• B) State Capital Investment Subsidy for Thrust Sector industrial units @35% on Fixed Capital Investment on Land, Civil works & Plant & Machineries / Equipments, subject to a ceiling of Rs.60 Lakhs per unit (w.e.f 01/04/2016).

• Employment Cost Subsidy for Thrust Sector industrial units :

1. 100% reimbursement of expenditure for Micro & Small Enterprise  on account of contribution towards ESI and EPF Schemes subject to employment of 20 and more  skilled and semi-skilled workers who are domicile of the State.

2.  50% reimbursement for large enterprise on account of contribution towards ESI and EPF Schemes for a period of 5(five) years subject to employment of more than 50 skilled and semi-skilled workers who are domicile of the State.

• Industrial Promotion Subsidy equal to the net amount (net of input taxes) of the Tripura Value Added Tax (VAT), Central Sales Tax (CST) and any other commodity tax actually paid by an enterprise to the State Government on sale of finished goods, subject to overall ceiling of Rs.50 lakhs per enterprise per annum. The subsidy shall be given to an eligible enterprise for 5 years from the date of commercial production.

• 15% Procurement Preference to local Industrial enterprises after comparison on landed price of all bidders. This benefit is available only to enterprises achieving minimum 20% value addition within the state. 
• Reimbursement of Interest on term loans actually paid to banks/ financial institutions to the extent of @3% subject to a ceiling of Rs.1.50 lakhs per annum for 5 years.

• Reimbursement of Power Charges for 5 years @15% of the power charges actually paid by the enterprise, subject to a ceiling of Rs.12 lakhs per year.

• State Transport Subsidy for transportation of raw materials and finished products on the pattern of Central Transport Subsidy for 5 years. The State Subsidy shall cover the portion for which Central Subsidy is not available.  For instance, if Central Subsidy is 90%, State Subsidy shall be 10%.

• 85% Exemption from the payment of Earnest Money and Security Deposits to local enterprises on tenders floated by State Govt. Agencies.

• One-time full Reimbursement of Standard Certification Charges/Fees.

• Partial Reimbursement of floor space rentals for IT Industries (employing a minimum of 15 persons) for 5 years @20% to the rentals actually paid by the enterprise, subject to a ceiling of Rs. 12 lakhs per unit.

There is a State Level Committee (SLC) under chairmanship of State Industry Secretary to recommend the cases. NEDFi is disbursing the cases on behalf of Govt. of India. Efforts are made to hold SLC meetings regularly in order to recommend eligible cases in a timely manner.

Performance so far:

The position regarding cases sanctioned (in case of State Incentives)/ recommended for sanction (in case of Central Incentives), during last few    years, is as follows:

Rs.in Lakhs