ABSTRACT

Industries-New Industrial Policy, 2003-Framing of guidelines for sanction of Structured Assistance Package-Guidelines framed-Orders-Issued 

 INDUSTRIES (MIF1) DEPARTMENT

G.O.(Ms).NO. 91                                                    

DATED: 18 - 07-2005

READ:-

G.O.(Ms.)No.58, Industries(MIF1)Department, dated 2.9.2004.

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ORDER:

In the Government order read above, in pursuance of the New Industrial Policy, 2003 among other things, the following orders were issued.

“The Government will at its discretion offer specific packages to single investments exceeding Rs.300 crores made in eligible fixed assets within a period of not more than 3 years from the date of project approval.”

2. In order to regulate the package of assistance, it has been proposed to frame guidelines for extending the specific package of Structured Assistance to attract large investments into our State. The Additional Director, Guidance has sent an approach paper on the guiding parameters for structuring the package of incentives. This was examined in detail.

3.The Government after careful consideration prescribes the following guidelines for sanction of structured assistance under New Industrial Policy, 2003 for investment exceeding Rs.300 crores in eligible fixed assets:-

i) Group investment made by the same group for their individual units exceeding Rs.300 crores will be eligible for sanction of structured assistance provided all the units are launched simultaneously. The Memorandum of Understanding shall be the basis to verify and ensure that all the units are launched by the same group.

ii) The period of 3 years prescribed to make investment of Rs.300 crores in eligible fixed assets as per the New Industrial Policy, 2003 shall ordinarily be followed. However, in deserving cases where such investment is more than Rs.300 crores, the time limit will be extended upto 5 years provided the minimum investment of Rs.300 crores is made within 3 years.

iii) Industrial Units investing more than Rs.300 crores are eligible for a soft loan, which may start with 100% initially on the total Tamil Nadu General Sales Tax (TNGST) / Central Sales Tax (CST) etc., paid by the company after the commencement of commercial production and thereafter progressively reduced. Higher weightage will be given to units set up in industrially backward and most backward areas. The Soft Loan will be charged a nominal interest of 0.1% per year. The quantum of Soft Loan shall not exceed 100% of the investment made in eligible fixed assets within the prescribed time limit.

iv) Assignment of land will be made usually on cost basis. However, in deserving cases, concession will be considered on a case to case basis.

v) Investment made in second-hand machinery installed in new or expansion projects will be considered for the purpose of incentives on a case to case basis.

4. State Industries Promotion Corporation of Tamil Nadu Limited shall be the implementing and monitoring agency for the sanction of structured assistance. The guidelines indicated in para three above for sanction of structured assistance would take effect from 16.9.2003 as ordered in the Government order read above. The existing norms for sanction of incentives will continue.

5. This order issues with the concurrence of the Finance Department vide its U.O.No. 2448/FS/P/05, dated 16-07-2005.

(BY ORDER OF THE GOVERNOR)

RAMESHRAM MISHRA
SECRETARY TO GOVERNMENT

To

The Chairman and Managing Director, SIPCOT, 19A Rukmini Lakshmipathy Road,
Egmore, Chennai-8.

The Managing Director, Tamil Nadu Industrial Investment Corporation Limited,Chennai-35

The Industries Commissioner & Director of Industries and Commerce, Chennai-5.

The Director, Guidance, 19A Rukmini Lakshmipathy Road, Egmore, Chennai-8.

The Accountant General, Chennai-18

The Accountant General, Chennai-18(by name)

Copy to:

The Finance Department, Chennai-9.

The Small Industries Department, Chennai-9.

The Chief Minister's Office, Chennai-9.

All Sections in Industries Department, Chennai-9.

The Industries (IT)Department, Chennai-9 (for hosting in Govt. website) (2 copies)

The Industries (OPII)Department, Chennai-9.

SF/SC

// Forwarded by order // 

Section Officer.