Mizoram: Industrial Policy 2000

1.Background

1.1    The Industrial Policy of Mizoram State was first notified on 15.03.89 with view to give direction to the strategies for industrial development of the state. While announcing the said policy statement, the Govt. of Mizoram took full cognisance of the Industrial Policy resolutions of the Govt. of India announced during 1948-1956 and the amendments made thereof during 1973, 1977 and 1983. Policy resolutions were taken on 1989 with a sense of commitment to the people of Mizoram to improve the economy of the state and thereby bring about higher quality of life and happiness to the people of Mizoram.

1.2. While making the policy resolution in 1989, the Govt. was fully aware of the objectives of the central Govt. in regards to up gradation of technology, export promotion, balanced growth, broad-basing entrepreneurial skill and to improvement of technical skill for rapid growth of industries under a fast changing industrial scenario of the country.

1:3. The industrial policy of Mizoram 1989  laid stress on reducing shifting cultivation from primary to secondary sectors by way of developing rural industries like handloom and handicraft and village and cottage industries. Priority was assigned to agro and forest based industries, handloom and handicraft industries, sericulture industries and electronics industries. The policy, interlay, laid emphasis on even development of all these sectors, various kinds of supports like institutional organizational and  marketing supports, and schemes for infrastructure development  and manpower development apart from initiating several state-level incentives schemes to attract prospective entrepreneurial were announced by the Government.

1.4. Industrial Policy of 1989, considering the nascent stage of development on the state laid accent on protection of the local small scale entrepreneurs in order to safe guard the socio-cultural and ethnic identity of the indigenous enterprise of Mizoram. Therefore, setting up of industries in the small-scale sector by outsider was not allowed. However, investment from outside was allowed in medium and large-scale industries in joint and assisted sectors.

1.5. Approach to industrial development in the State since then was based on the following resolutions of Industrial policy of 1989.

1.5.1.    Setting up of viable industrial projects in large and medium sectors through state owned corporation.

1.5.2.    Setting up modern small-scale industries at the level of private entrepreneurs by providing all necessary promotional supports with the help of incentive schemes.

1.5.3.    Development and promotion of artisan-oriented industries like handloom and handicraft village and tiny industries in rural areas by providing necessary supports like grant-in-aid, subsidies, raw-materials, shed, marketing and training facilities etc.

1.5.4.    Development of infrastructure.

1.5.5.    Manpower development.

1.5.6.    Strengthening of organizational set up.

1.5.7.    Exploration and development of mineral resources.

1.6  The intention of the government of Mizoram while announcing the first Industrial Policy was not industrial growth per so but was rather directed towards all round development in the interest of the indigenous people of Mizoram and towards giving them gainful employment and self employment opportunities in the industrial and allied sectors.

1.7. As a result of a policy direction given during the 8th plan period, significant growth in small scale industries, increase in production, awareness amongst the local entrepreneurs to set up modern small scale industries, availability of technical manpower and improvement in basic infrastructure and agro based industries are now noticeable in the state. It has been observed that, though there is no lack of enthusiasm amongst the local entrepreneurs to go for hi-tech investment, lack of finance and lack of locally available resources are the main bottlenecks. Further, resources at the level of the government is also very limited to fund big projects through the public sectors undertaking.

1.8. In view of the continuing backwardness of the North Eastern region, the Government of India vide its notification No. EA/1/2/96-IDP Dt.24th Dec. 1997 announced New Industrial Policy for the North Eastern Region. This policy aimed at encouraging investment in the industrial  sector by announcing fiscal and other incentives for the purpose of overall economic growth of the region.

1.9. In view of the National Industrial Policy and the New Industrial Policy for the North Eastern Region, the Government of Mizoram felt it necessary to announce a New Industrial Policy in the new millennium, 2000 for accelerated industrial and economic development of the state.

 

2. Aims and objectives:

2.1. The main aim of this New industrial policy of Mizoram, 2000 will be to engineer rapid growth in the state by industrialisation of the state to a sustainable extend to the fulfilment of the following:

2.1.1    Enrichment of industrial growth potential lying in the sectors like agriculture, horticulture, forest and establishment of proper linkage amongst the industries based on resources available in these sectors.

2.1.2    Formation of suitable mechanism for attracting and growth of capital formation in Mizoram by taking full advantage of the policy changes initiated by the Central Government in respect of industry, trade and commerce from time to time.

2.1.3    Identifying and developing entrepreneurial and managerial skills by providing suitable training programmes at Districts, Sub-Division and Block levels and to create facilities for training or industrial labour on sustained basis.

2.1.4    Ensuring balanced sectoral and regional growth by promoting industries under all sectors.

2.1.5    Promotion and modernization of textile industry including traditional sericulture and handloom and handicraft sectors by induction of improved design, quality and technology so as to make textile industry a potential export oriented sector.

2.1.6    Encouraging joint ventures between local entrepreneurs and industrialists from outside the state on selective basis.

2.1.7    Encouraging joint ventures from outside the state with state's own public sector undertaking and resourceful local entrepreneurs.

2.1.8    Encouraging self employment especially among technically qualified unemployed persons of the state for generating additional employment opportunities in the states.

2.1.9    Allowing convergence of activities of all government agencies so as to make a concerted approach towards industrial growth.

2.1.10    Identifying sick industries  and take measures for the revival of such units which have the potential to turn around.

2.1.11    Making Mizoram a major center for the growth of fruit and food based industries by encouraging plantation and growth of different kind of live-stocks in the state.

2.1.12    Making major entry in bamboo based industries by optimum utilization of bamboo resources of Mizoram.

2.1.13    Developing Mizoram as an attractive region for tourism industries.

2.1.14    Encouraging quality control, standardization and competitiveness of the local products.

2.1.15    Envisaging industrial development in Mizoram by encouraging private entrepreneurship and confining the role of government to that of promotional and catalytic agent for the    growth of industry, trade and commerce in the state.

2.1.16    Ensuring minimization of pollution and encouraging eco-friendly units.

2.1.17    Encouraging industry based on medicinal plants and encouraging Research and Development in this field.

 

3. Approaches:

The Government, therefore, shall adopt the following approaches to achieve the desired objectives:

3.1    Identification of thrust areas and promotion of specific industries.

3.2    Announcement of a package of fiscal and other incentives.

3.3    Catalyse development of industrial infrastructure.

3.4    Provide special promotional package for rural and traditional industries and for industries based on sericulture.

3.5    Re-structuring of public sector undertaking to make them more efficient for achieving commercial viability.

3.6    Evolving rehabilitation package for sick industries.

3.7    Development of market support system including encouragement of export market.

3.8    Development of appropriate training facilities.

3.9    Encouragement of research and development activities.

3.10    Adoption of new administrative measures to back up the system

3.11    Adoption of board policy on foreign Direct Investment (FDI) and Joint venture proposals keeping in view the necessity of safeguarding the interest of the tribal entrepreneurs and tribal population of Mizoram.

3.12    Development of a mechanism for protection of environment  and affluent reduction and phasing out use of chemical dyes and to prevent pollution in industrial sector.

 

4.    Thrust areas and encouraging growth of specific industries in these areas:

4.1    Identified thrust area for concentrated industrial development will enjoy additional incentives as follows. Major thrust however, will be on small scale sector and local resources based industries.

 

4.1.1    Electronics and Information Technology:

Electronics and Information Technology is going to be the industry of the new millennium. The pollution free atmosphere in the State is congenial for development of this sector. The state government will attach top priority to these sectors and will announce a separate policy on Information Technology.

 

4.1.2    Bamboo-based and timber base products:

The vast Bamboo resources of Mizoram will be optimally exploited for setting up of industry for manufacturing various bamboo-based products such as fibre board, bamboo mat-ply different kind of house-hold products such and high quality toothpick, chop-stick and joss-stick. This sector, therefore, will attract special attention of the Government. Plantation of high value timber and bamboo will be encouraged to sustain timber based industries. Timber based and bamboo based industries will be encouraged to the limit sustainable by the Mizoram ecology and environment.

 

4.1.3    Food and Fruit processing Industries:

The climatic condition of Mizoram is favorable for cultivation and growth of various kinds of fruits. The condition is also very favorable for poultry and animal husbandry and mushroom cultivation. Government shall therefore, encourage development of these sectors so that raw materials base for food and fruits processing industries, mainly at the level of private entrepreneurship, is well developed. Further, the state Government will assist in establishing, appropriate linkages between the growers and processors. Contract farming may be introduced for backward linkages between the growers and the processors.

 

4.1.4    Textile, Handloom and Handicraft Industry:

Handloom and Handicrafts, which is a traditional industry in Mizoram, will continue to receive prime attention from the government. Modernisation of this sector by induction of improved design and technology to make it an export oriented sector will be encouraged and promoted. Export oriented textiles and readymade garments industries will receive special attention of the government. Induction of power-looms will be encouraged selectively while safe guarding the interest of traditional weavers of Mizoram.

 

4.1.5    Plantation Fibre and Hill Brooms:

Industry based on plantation fibre and Hill Brooms will be encouraged keeping in view the sustained extraction of such items from the forest of Mizoram.

 

4.1.6    Tung oil and Non-edible oil extraction:

With the encouragement and assistance of the State government, vast area of land has been planted with tung trees at the village level. The indigenous demand of Tung oil is in laminates, paints and ink industries, which, at present, is being met in India by import only. Extraction of oil from Tung seeds will be considered by the government as priority industry and will be encouraged.

Extraction of Citranella oil, having ready market in pharmaceutical and health-care industries will be encouraged. In addition, plantation of edible oil seeds and extraction of oil thereof will be encouraged.

 

4.1.7    Tea, Rubber and Coffee Industry:

Entire Mizoram has been declared as non-traditional area for tea development which qualifies to receive incentives unlike traditional areas. Tea plantation is not new in Mizoram. However, scientific and commercial Tea plantation will be encouraged as family oriented scheme, with encouragement for setting up of processing plants in the private sector. Coffee and Rubber based industries will receive due attantion from the Government for their cultivation and processing. Interest of indigenous laborers will be protected while promoting tea industry.

 

4.1.8    Industry based on Mines and Minerals:

As the whole of state is far behind in development of mines and minerals. all proposals for setting up its based on mine and mineral resources of Mizoram will receive attention and will be promoted. Units based on indigenous and imported gems and gemstone will receive special attention of the government.

In different places in Mizoram, shell limestone deposits has been identified, These deposit will be used as raw materials for producing decorative slabs for building and other applications. Units sourcing such deposits will be encouraged.

 

4.1.9    Tourism Industry:

Mizoram with its soothing climate and exquisite natural beauty resting on the undulating hills greenery offers good scope for developing tourism industry. Government will encourage and promote this industry.

 

4.1.10    KVI Sector Units:

Industries on KVI sector patronised by KVIC will also continue to receive patronage from the state Government as units in this sector generates a large number of employment and items of common use.

 

5.    Fiscal and Other incentives:

To encourage flow of capital into industrial sector, the state Government announces an attractive package of fiscal other incentives to the entrepreneurs in addition to the various types of incentives already offered by the Government of India. Further, special incentives are offered by the state to industries set up in thrust areas. Details of this scheme can be seen under part-III.

 

6.    Development of Infrastructure:

Infrastructure is a pre-requisite for industrial development. The Government will take integrated approach towards improvement of basic infrastructure in the state like road, power, communication and water supply.

Industries department will take responsibility of providing inbuilt infrastructure facilities to the sustainable types of Industries by establishing Growth Centeres, Industrial Eastate, Export Promotion Industrial Park, Information Technology Park, Integrated Infrastructure Development Center, Special Economic Zone and Industrial Areas.

 

7.    Special Promotional Package for rural and traditional industries:

To make the rural economy self-sustained and to check the migration of rural population into urban area, it will be necessary to strengthen the non-farming sector in the rural area by encouraging establishment of village, cottage and tiny industries. Special promotional measure will be undertaken by the Government to strengthen this sector.

 

8.    Re-structuring of state public sector undertaking:

The public sector undertaking set up by the government of Mizoram to serve specific purpose could not perform up to the expectation. Most of them are running with accumulated loss in spite of their contribution to the social sector. The role of public sector undertaking will be reviewed by the government and re-structuring and rehabilitation, will be undertaken leading them to commercial viability.

 

9.    Rehabilitation package for sick industries:

Sick industries will be identified and their cause of sickness will be studied. A model rehabilitation package will be evolved for those sick units which merit revival.

 

10.    Training facilities:

The State government recognised that the basic problem in the process of industrialisation in the state is lack of technical, managerial and entrepreneurial skill among the people. The state government will continue its efforts to improve training infrastructure in the state and open more training centres in various disciplines to ensure supply of technical man power to meet the requirement of local industries. The department of Industries will organise chain of EDPs in collaboration with IDBI, SIDBI, NEDFi, state PSUs, MIA proposal 21-09-2000 and other.

 

11.    Research and Development facilities:

In order to achieve TQM, it is necessary to encourage and facilitate setting-up of R/D cells/Division in as many units as possible. Government will consider formulating a separate set of Rules for providing 100% Grant for setting up R & D /Division in industrial units.

 

12.    Administrative support:

The government will take all possible administrative measure to oversee implementation of the resolution taken in the present policy frame work. The details of such measures are elaborated at part-II of this policy.

 

13.    Policy on foreign direct investment (FDI) including investment from out side the state:

13.1    Mizoram is economically backward state inhabited by a distinct ethnic group of people having their own socio-cultural and religious identity. The state government nevertheless, will encourage foreign direct investment and from out side the state with caution and restraint so as to safe guard the socio-cultural economic identity of the indigenous people of Mizoram. The state government fully appreciate the policy of privatisation, liberalisation and globalisation and the benefit being derived thereof, does not like to lag behind other states to attract investment from outside but will adopt a cautious approach keeping in view the interest of the tribal population of Mizoram. FDI in fruit and Bamboo processing sector will be given higher preference.

13.2    The Government reserves the cottage, village and tiny industries for development at the level of local entrepreneurs only. However, in case of small scale industries, investment in plant and machineries anything above Rs.50.00 lakhs will be open for investment from out side for joint venture with local entrepreneurs only in the thrust areas. Any such investment proposal should be submitted to the government in detail for consideration and clearance.

13.3    FDI and investment from out side the state in the large and medium sectors only in the thrust areas will be encouraged in joint sector with the state PSUs or/and with resourceful local entrepreneurs as this can induce ancilarization and establishment of down stream industries in the state in small scale sectors, and generate employment opportunities to the local people.

Any such investment proposal has to be submitted in detail to the government for consideration and clearance. For an attractive proposal which will contribute to the economy Mizoram, the government will make the land available to the promoters of such proposal on long term lease basis.

13.4    In the joint venture sectors non-supervisory and non-technical employment will be reserved to the local people whereas preference will be given to local talents in technical employment.

 

14.    Environment and Pollution Control

14.1    All new units, excepting those under IT sectors, will necessarily obtain clearance from State Pollution Control Board.

14.2    All existing units shall also endeavour to make their units compatible to Rules and Regulation under State Pollution Control Board within 3 years from the date of issue of this policy.

14.3    Prior clearance of department of Environment and Forest, Government of Mizoram shall be obtained before setting up new units in areas other than Industrial Estates, Growth Centres, EPIP, IT Parks, IIDC and declared industrial area.

 

With a view to take an integrated approach toward industrialisation of the state, the following administrative measures will be adopted:

15.    Cabinet Committee for Investment Promotion (CCIP)

There will be a Cabinet Committee for Investment Promotion (CCIP), of which the Chief Minister will be the Chairman. This Committee will be the final authority to give clearance to any proposal of joint venture and for investment coming from outside the state including foreign direct investment (FDI). This committee will also give direction to various departments for proper implementation of the policy on such investment and joint venture proposals.

 

16.    Mizoram Investment Promotion Committee (MIPC)

A Mizoram Investment Promotion Committee will be constituted with the Chief Secretary of the state as its Chairman and the secretary planning, Secretary Finance, Secretary Industries, Directorate of Industries and President MIA as Members. This Committee sit at least once in Six months to over-see implementation of the policy resolutions on investment and joint venture proposals and will issue direction down-stream and advice up-stream on such matters. Proposals cleared by the MPIC will be placed to the CCIP for final decision. The Chairman of the Committee will have the discretion to co-opt members of Industries Associations into the Committee.

 

17.    Market support system

 The state government will provide a strong and effective marketing support to the local industries by taking various measures including revision and effective implementation of the State Government Preferential stores Purchase Rules. The State government will consider formation of Market Promotion Council under the new Industrial Policy of Mizoram, 2000 which will function in an advisory capacity. This council will co-ordinate and interact with the marketing agencies elsewhere to promote sales of local products inside and outside the country. One of the major areas of operation of this council will be export promotion of locally identified exportable products like garments, processed foods, handicrafts and handloom products as well as products from agro-based industries.

 

18.    Single-window clearance

A prospective investor should get all his requirement and information relating to setting up of a Industry cleared through a single authority. The Department of Industries will offer this single window facility through a Green Channel Committee of officials of all other concerned Departments and the committee will be headed by the Secretary, Industries.

 

19.    Rehabilitation Cell for sick-units

A Rehabilitation Cell in the Directorate of Industries will be set up and will be headed by the Directorate of Industries. This cell will work in co-ordination with Zoram Industrial Development Corporation (ZIDCO) and will jointly participate in analyzing the viability of the sick industries of the state and suggest measures for their rehabilitation. A separate mechanism for Rehabilitation of sick units will be evolved by the Industries Department.

 

20.    Public Enterprise Cell

A Public Enterprise Cell will be constituted in the Department of Finance to over-see functioning of the public sector units and formulate guidelines for revamping their management and for organizational and structural  adjustment. This Cell will be headed by the Secretary. Finance Department with members from members from Planning and concerned Departments under which the PSUs are created. The Secretary Industries and Directorate Industries shall also be the Members.

 

21.    Task Force for Fast Track implementation of Industrial Projects

A standing Task Force will be constituted in the Industrial Department to identify specific Industrial Projects that can be implemented by placing them on Fast Track, Depending on the profiles will be prepared for distribution to the interested entrepreneurs. Reputed consultants may be co-opted to the Task Force who can tender advice on technological aspects of a projects including marketing of products.

 

 22.    Incentive Scheme, 2000

From the date the New Industrial Policy of Mizoram will come into force, a new package of incentives shall come into force and shall remain in operation till such time the state Govt. give due notice towards discontinuance of its operation or till amendments are made to the scheme shall not be adversely affected by any such discontinuation amendment.

 

23.    Eligibility

23.1    All new industrial units in the private State public sector and in Joint sector set up on or after 24-12-1997 will be eligible under Incentive Scheme of 2000

23.2    Existing industrial units undertaking expansion, modernization or diversification  made on or after 24-12-1997 shall be eligible for the incentive for the expanded portion only under this scheme.

23.3    To be eligible for these incentives, the industrial units should be located and have their registered offices in the State of Mizoram.

23.4    Those existing industrial units which have already availed of incentives similar in nature under Incentives Scheme of 1989 and thereafter shall not be eligible under Incentive Scheme of 2000.

23.5    Special preference shall be given in the manner of incentives available from state and Centre to those units located in Growth Centres. EPIP, Industrial Estate and such other areas identified and declared as such by the State Government.

 

24.    New Units

An industrial units which has undertaken one or more effective steps on or after 01-04-2000 would be considered as a new unit for purpose of Incentive Scheme of 2000.

Explanation

Effective steps: Effective steps means one or more of the following steps:

60 percent or more of the capital issued for the industrial unit has paid up. 

Substantial part of the factory building has been constructed.

A firm order has been placed for substantial part of the plant and machinery required for the industrial unit.

 

25.    Existing Units

Any industrial unit which is /was in commercial production at any time prior to 24-01-1997 would be considered as an existing unit for the purpose of incentive scheme of 2000.

 

26.    Continuance of Existing Incentives

The existing incentives offered under the New Industrial Policy of Mizoram, 2000 shall not be applicable to units were sanctioned incentives under the rules of incentives/subsidies under the Industrial Policy of Mizoram State, 1089. All such units will continue to be governed by the provisions of sanctions already issued under relevant rules of Industrial Policy of 1989. However, the units which were set up prior to the commencement of this scheme, but have not so far availed any of the benefits under afore-mentioned rules may choose to exercise one time option in favour of either of the schemes.

The incentives offered under the rules for the grant of incentives/subsidies under the Industrial Policy of Mizoram State, 1989 are as follows and all new units set up on or after 24-12-1997 shall be eligible to these incentives.

26.1.1     Reimbursement of the cost of Project Report :

Reimbursement of the cost of preparation of Project Reports prepared by agencies approved by the State Govt. will be made after effective steps are taken by the entrepreneurs as follows :

(i) 90 percent in case of tiny units subject to a ceiling of Rs.5000 per unit.

(ii) 75 percent in case of small scale and ancillary units subjects to a ceiling limit of Rs.25000/- per unit.

(iii) 50 percent in case of medium and large units subjects to a ceiling limit of Rs.50000/- per unit.

 

26.1.2     Land Subsidy :

(i) The State Government will endeavour to allot land to new industrial units excepting Village and Cottage Industries. The State Government shall give special consideration for the allotment of Government land for industrial purpose.

(ii) The developed land in the Industrial Growth Centres will be allotted to the eligible units in accordance with the procedures prescribed by the implementing authority and 25 percent of the cost of the land will be subsidised by the State Government for Small Scale Units and the remaining amount will be recovered in 15 equal annual instalment. The allotted land will be permitted to be utilised by the unit for mortgage purposes for rising loan from banks and financial institution.

(iii) In regards to undeveloped land allotted to an entrepreneurs within the declared industrial area the cost of the land will be recovered in 15 equal annual instalments from tiny, small, ancillary, medium or large industries. As for small and tiny units the State Government will reimburse 25 p.c. of the actual amount spent by them in development of such allotted land.

(iv) The allotment of land above mentioned to a non-Mizo/non-tribal entrepreneur will be subject to the relevant provisions of laws, rules and regulations dealing with the subject.

 

26.1.3     Factory Rent Subsidy to Small Scale Industries Units :

Built up factory sheds in the Industrial Estate will be allotted to entrepreneurs of the Small Scale and tiny sectors on monthly rent basis and the State Government will reimburse 50 p.c. of the dully assessed rent for the period of 5 years from the date of commercial production.

 

26.1.4     Subsidy on Manpower Development :

The Industrial Units which are already gone into production sending their workers outside the State for managerial and technical training for up gradation of their skills to a Government recognised institution or registered/licensed industrial unit shall be given subsidy provided that they give undertaking to the effect that all such trained workers will continue to be employed by them after their training 50 p.c. of the actual expenditure with upper ceiling limit of Rs. 3000/- per trainee will be reimbursed subject to Rs.25,000/- per unit for these years.

 

26.1.5. Interest Subsidy:

The entrepreneurs will be given 4 p.c. subsidy of interest charge by financial institutions for term and working capital loans for a period of five years from the date of commissioning of their units subject to timely repayment of the loans, the subsidy amount will be reimbursed to the entrepreneur on production of the relevant documents showing repayment of the loan/interest amounts.

 

26.1.6. Power Subsidy:

Expenditure on power consumption by small scale units to the extent of 60 p.c., 50 p.c. for medium scale and 30 p.c. for large scale units will be reimbursed by the State Government for a period of five years from the date of commercial production. This subsidy will be allowed only actual consumption of power in manufacturing processes and will not be allowed for residential purposes.

 

26.1.7. Subsidy on Power Lines:

50 percent of the cost incurred on drawal of electric power line from the main line to the factory shed will be subsidised subject to a ceiling Rs. 50,000/- for each industrial unit.

 

26.1.8. Subsidy on Power Generating Set :

50 percent of the cost of generating set actually purchased by the industrial unit will be subsidised subject to maximum of Rs.3.00 lakhs for purchase and installation of captive generating sets. The units is also not be liable to pay electricity duties on power generated by captive generating set and used for production purposes in such units.

 

26.1.9. State Transport Subsidy on Plant and Machineries:

50 percent of the actual cost of transportation of industrial plant and machines from the place of purchase up to the location of the unit will be reimbursed by the State Government. The basis of calculation of the amount to be reimbursed will be the official document proving the cost of transportation through rail, transport agency etc.  

 

26.1.10.    Existing State Rules for grant of incentives/subsidies also will be reviewed by the Government to incorporate suitable amendments conforming with the New Industrial Policy of Mizoram, 2000.

 

27.    New Incentives

In addition to the existing incentives, the government of Mizoram offers further incentives under the New Industrial Policy of Mizoram 2000 as follows:

 

27.1    State Capital Investment Subsidy

 An investment subsidy on the total investment made in plant and machinery shall be provided on a graded scale to the new industrial units. It will be available to both new unit as well as to existing units carrying out expansion, diversification and modernisation activities.

The graded subsidy will be as under:

Types of Industry Subsidy eligible in general Subsidy eligible unit set up in the thrust area

Artisan and tiny scale units 15% of total capital investment in plant and machinery 20% of total investment in plant and machinery

Small scale capital units 10% of total capital investment in plant and machinery subject to a maximum of Rs.5.00 lakhs 15% of total investment in plant and machinery subject to a maximum of Rs.7.00 lakhs 

Medium scale units 5% of total capital investment in plant and machinery subject to a maximum of Rs.10.00 lakhs 10% of total capital investment in plant and machinery subject to a maximum of Rs.15.00 lakhs

 

27.2    Concession on State and Central sales tax

State Sales Taxes shall be exempted for a period of 7 year from the date of commencement of actual commercial production. However, for the units set up in the thrust area, the exemption period will be 10 years.

Exemption of Central Sales Taxes and Excise duties will be governed by various Notification/Orders issued by Government of India in this regards.

 

27.3    Price preference

Price preference will be given for the products of local units as per the provisions of Mizoram preferential stores Purchase Rules, 1994. Broadening a depending of the coverage of the Rules will be carried out.

 

27.4    International Standard Organization/Bureau of Indian Standard Certification

The state government shall encourage the small industries to obtain Bureau of Indian Standard (BIS)/International Standard Organization (ISO) Certificate for their product to enable them to compete at the State and National levels. For this purpose, the state government shall reimburse 100% of the expenditure incurred on registration fee, marking fee and purchase of testing equipment subject to actual to the maximum limit of Rs. 1, 50, 000/- for units set up in thrust areas.

 

27.5    Subsidy on registration fee of promotion council, commodity board and chamber of Commerce

The amount spent by an industrial unit in obtaining a registration with recognised promotion council, commodity board, chamber of commerce etc., shall be reimbursed to the unit subject to a limit of Rs.20, 000/- or the actual registration fee whichever is less.

 

27.6     Incentives for export oriented units

27.6.1    For 100% Export Oriented Units (EOU)

An additional 5% capital investment subsidy for investment on plant and machinery subject to a maximum of Rs.5.00 lakhs will be made available to 100% EOUs.

 

 27.6.2    Other units with an export commitment of less than 100% of the total turn over

An additional 2% of capital investment subsidy for investment of plant and machinery subject to a maximum of Rs.2.00 lakhs will be made available to units of less than 100% export commitment.

 

28.    State Level Review Committee

The policy statement shall be reviewed and recommendations made annually for adjustment and for providing additional policy support to the industry by a state level review committee to be headed by Secretary, Industries Department, Government of Mizoram with members drawn from various Departments involved in Industrial Development of Mizoram. The State Pollution Control Board, Environment and Forest Department, Geology and Mining Wing of Industries Department and Mizoram Industries Association will also be represented in the Committee. Recommendations so made shall be placed before the Cabinet for their consideration.