STATE
POLICIES

TRIPURA

TRIPURA INCENTIVE SCHEME,1995

Information source: Departmentof Industries & Commerce, Government of Tripur

Short Title

The scheme be called TripuraIncentives Scheme, 1995 (hereafter referred to as Scheme/95) for industrial units (hereafter referred to as units) to be set up in State of Tripura.
Commencement and Duration

Unless specifically mentioned against the respective items of incentives sanctioned under Scheme/95, it shall come into effect on an from the first day of April, 1995, in the whole of Tripura and shall remain valid for a period of five years ending on the thirty first day of March, 2000.
Definitions

In Scheme 95, unless the context otherwise requires:
1. "AFC" means Assam Financial Corporation.
2. "Ancillary Industry" means an industrial unit meeting the requirements to be complied with by an industrial undertaking for being regarded as ancillary industrial undertakingas prescribed by the Central Government from time to time.
3. "Authorised Agent" means the Directorate of Industries and Commerce and/or TIDC, or an agent specifically authorised by the State Government for operation of the Scheme/95.
4. "Central Government" means Government of India.
5. "Closed unit" means a unit which is not less than 7 years old and has remained permanently closed for more than 3 years before the date of transfer of ownership/management.
6. "Export Oriented Unit" means a small scale unit with an obligation to export at least 30% of its production by the end of three years from the date of commencement of commercial production; or a medium/large scale unit exporting at least 50% of its output.
7. "Factory" means any premises including the precincts there of-:
  1. wherein ten or more workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried out with the aid of power, or, is ordinarily so carried on;
    
    or
  2. wherein twenty or more workers are working or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried out with the aid of power, or is ordinarily so carried on, but does not include a mine, subject to the operation of the Mines Act, 1952 (35 of1952), or a railway running shed.
8. "Factory Worker" means a person employed, directly or through any agency, or in cleaning any part of the machinery or premises used for a manufacturing process or in any other kind of work incidental to, or connected with, the manufacturing process, or the subject of manufacturing process.
9. "Fixed Capital Investment" means investment made in land, building, plant and machinery of the unit on or after first of April 1995 subject to the other conditions laid down in paragraph 6 of the Scheme/95.
  
  Explanation:
  Fixed Capital Investment shall be calculated as follows:-
  1. Land: actual price or premium paid for the land free-hold or lease-hold as determined by the authorised agent.
  2. Building: the actual expenditure incurred for construction of the office building, factory sheds etc. as necessary for the unit, but not including the residential quarters.
  3. Plant & Machinery: the fixed capital investment in plant and machinery shall include also the cost of machinery and installation of captive power generation unit, cost of drawal of high tension and low tension power lines and installation of transformer, provided it is done with the prior approval of the State Industries and Commerce Department and further provided that such costs have not been otherwise reimbursed by the State or Central Government.
    The fixed capital investment on plant and machinery shall be calculated as follows:
    The cost of plant and machinery as erected, including cost of productive equipments as jigs, dies, moulds,etc. but excluding the cost of any second hand plant and machinery as also plant and machinery purchased and installed under any hire purchase agreement.
    In the case of plant and machinery taken on lease, the leasing fee/charges shall be taken into account, provided that on expiry of the leasing contract, the said plant and machinery becomes the property of the unit.
  4. In the case of a sickunit, the value of fixed assets in land, building, plant and machinery as accepted and approved in the rehabilitation/revival package shall be taken as fixed capital investement. In case of a closed unit, transfer value as per registered deed will form the basis for determining fixed capital investments for the purposes of incentives as stipulated in theScheme/95.
10. "Gross Value of the FixedAsset of the Unit" means the gross fixed capital investment as it stoodat the end of the previous financial year plus the fixed capital investment made during the year minus the value of fixed assets disposed of duringthe year.
11. "Large/Medium ScaleUnit" means a unit, other than a small scale or ancillary unit as defined by the State Government or the Central Government from time to time.
12. "Local Sales Tax" means sales tax obligation of a unit to the State Government on the sales of finished goods, if any, under the Acts mentioned in clause (xv).
13. "Negative List" means the list of industries in the Annexure here to as may be amended or altered by the State Government from time to time.
14. "Non-Conventional Energy" Sector shall mean industries based on the following technologies:
  1. Solar Photovoltaics, including silicon material
  2. Solar Thermal
  3. Wind Energy
  4. Biomass
  5. Battery operated Vehicle
15. "Sales Tax Acts" means as amended from time to time.
  1. The Tripura Sales Tax Act, 1976, (11 of 1976)
  2. The Central Sales Tax Act, 1956.
16. "Sales Tax Payable on Raw Materials" means sales tax payable by the unit to the registered dealer(s)under the Sales Tax Acts, as applicable on purchase of raw materials, less set off admissible, if any, under the Sales Tax Acts, mentioned in clause(xv).
17. "Scheme/90" means the "Tripura State Scheme of Incentives to Industrial Units, 1990".
18. "Sick Unit" mean a Unit, in the medium or large industries sector,
  1. the net worth, as per audited accounts, of which has become negative as on the date of reporting to the BIFR or to an All India Financial Institution or a State Financial Institution or a Commercial Bank seeking assistance for its own viable rehabilitation
  2. which is not less than 7 years old;
    
    and
  3. which has incurred cash losses in the last two consecutive financial years, or a unit in the small scale industries sector, for which,-
    1. any of its borrow accounts has become a "doubtful" advance, i.e., principal or interest in respect of any of its borrowal accounts has remained overdue for a period exceeding 2.1/2 years;
      
      and
    2. there is erosion in the net worth due to accumulated cash losses to the extent of 50% or more of its peak net worth during the preceding two accounting years.
    Explanation
    1. "Net Worth" means the sum total of paid up capital and free reserves in the case of a Company as defined in section 3 of the Companies Act, 1956 (1 of 1956), or of the capital invested in the other cases, in a sick industrial unit;
    2. "Cash Loss" means loss as computed without providing for depreciation;
    3. "Negative Net Worth" means accumulated loss at the end of any financial year either equal to or exceeding its net worth;
  4. "Small Scale Industry" means an industrial unit meeting the requirements to be complied with by an industrial undertaking for being regarded as small scale industrial undertaking as prescribed by the Central Government from time to time.
  5. "Standard Certification" means certification given by a competent authority after due inspection/testing on standard of goods produced processes followed by the concerned unit.
  6. "State Financial Institutions" means AFC and TIDC.
  7. "State Government" means the Government of Tripura.
  8. "Thrust Sector" means a sector of industrial activities having special significance for the State, such as industrial activities based on natural rubber, natural gas, biotechnology, horticultural produce, sericulture cash crops like tea, coffee, spices and industries in the non-conventional energy sector; and such others as may be notified by the State Government further.
  9. "TIDC" means the Tripura Industrial Development Corporation.
  10. "Tiny Industrial Unit" means small scale unit whose investment in plant and machinery is upto Rs. 5.00 Lakhs.
  11. "Unit" means any industrial project in:
    Small scale/ancillary sector(including tiny cottage/village industries and industrial cooperatives),having a permanent registration certificate issued by the Directorate of Industries on or after April 1, 1995 or,
    Large or medium scale, having approval in the form of letter of intent, industrial licence or registration certificate as the case may be under the Industries (Development and Regulation)Act, 1951 (65 of 1951); or
    an acknowledgement in the form of Secretariat for Industrial Approval reference number from Central Government, excluding those mentioned in the negative list of Industries at the Annexure to the Scheme/95.
    Provided that, a hotel unit with fixed capital investment exceeding Rs.60 Lakhs and not exceeding Rs. 5crores shall be eligible for incentives under the Scheme/95, and no letter of intent or industrial licence or registration certificate under the Industries(Development and Regulation) Act, 1951 (65 of 1951); or an acknowledgement in the form of Secretariat for Industrial Approval reference number from Central Government shall be required in the case of a hotel unit.
  12. "Women Enterprise" for the purpose of the Scheme/95 means an industrial unit managed by one or more women entrepreneurs in proprietary concerns, or in which she/than they individually or jointly have a share capital of not less than 51% as partners/share-holders.
  13. "Years" means, unless or otherwise specifically stated and not repugnant to the context, the financial year commencing from the first of April and ending on the thirty firstof March following. In the case of an unit registered under any of thesales Tax Acts, "year" means the year according to which its assessmentis made under the act.
    Illustration: