State Profile of Arunachal Pradesh

• Arunachal Pradesh State Industrial and Investment Policy (2020).

• The department of Industries shall be the Nodal Agency for quality control of all industrial products in the state.

• Single Window Clearance System (https://eservice.arunachal.gov.in/resources/homePage/12/services.html)

• Manufacturing units (Small, Medium Enterprises) will be eligible for power subsidy 2.00 per unit consumed from the date of Commercial Production subject to a maximum of 75 lakhs Per Annum for a period of five years and not exceeding 100°/a of total investment made in Plant & Machinery, whichever is less. This shall be available only to the Units having electricity connections from 11 kv/ 33 kv transmission lines with the Department of Power, Government of Arunachal Pradesh only.

• Manufacturing units/ Industries (Large scale Factories/ Bulk Electricity consumers) will be eligible for Power Subsidy @1.00 per unit consumed from the date of Commercial Production subject to a maximum of 2 Crore Per Annum for a period of five years and not exceeding 100°/a of total investment in plant & Machinery, whichever is less. This shall be available only to the Units having electricity connections from 132 kv or above transmission lines with the Department Of Power, Government of Arunachal Pradesh only.

• All eligible new industrial units in the manufacturing and service sector located anywhere in Arunachal Pradesh will be provided State Capital Investment Subsidy @ 30°/a on the cost Of the investment in plant and machinery with an upper limit Of 50 Lakhs. The incentive/subsidy shall be claimed within 5 years from the date of commercial production

• ln order to encourage women entrepreneurs in the State, State Capital investment Subsidy@50% on the cost Of the investment in plant and machinery with an upper limit of 75 Lakhs will be provided. The incentive/subsidy shall be claimed within 5 (five) years from the date of commercial production/operation

• The fee payable for obtaining BIS/lSO/FSSAl/AGMAPIK/HALLMAPK/SI LK MARKZED Certification etc. by eligible unit, Will be provided subsidy up to the extent Of 100°/a subject to a ceiling of 20 lakhs per unit

• All eligible new industrial units located anywhere in Arunachal Pradesh shall be given an interest subsidy on term loan taken from the bank for plants and machinery. The incentive/subsidy shall be given to an eligible enterprise for 5 (five) years from the date of commercial production, provided term loan is repaid as per terms and conditions of taking such financial assistance from the banks

  Unit	Interest Subsidy
  Micro Enterprises	Reimbursement of interest of up to 80 a/o of annual interest on the loan taken, subject to a maximum ceiling of 5 lakhs per annum
  Small Enterprises	Reimbursement of interest of up to 50°/a Of annual interest on the loan taken, subject to a maximum ceiling of 15 lakhs per annum.
  Medium Enterprises	Reimbursement of interest Of up to 50°/a of annual interest on the loan taken, subject to a maximum ceiling of 20 Iakhs per annum.
  Non MSME Sector Unit	Reimbursement of interest of up to 50°/a of annual interest on the loan taken, subject to a maximum ceiling of 25 Lakhs per annum.

• All eligible new industrial units located anywhere in Arunachal Pradesh shall be given an interest subsidy @ three percent ( 3°/o ) on the outstanding working capital loan for five years subject to a ceiling of 1 Crore and not exceeding 100°/a of investment in plant and machinery. Interest subsidy shall be available only on outstanding working capital loan availed from Bank/Financial Institution

• For micro & small units – 100% reimbursement of net VAT/CST/SGST for 5 years.

• For medium units – 75% of net VAT/CST/SGST for 7 years.

• For large Industry unit - 50% of net VAT/CST or SGST will be reimbursed for a period of 7 years from the date of commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier.

• 100% reimbursement of stamp duty and transfer duty paid by the industry on purchase or lease of land meant for industrial use.

• 100% reimbursement of stamp duty for lease of land/shed/buildings, mortgages and hypothecations.

• All eligible new industrial units shall be reimbursed or exempted from payment of Stamp Duty up to 50% of the subject to a monetary ceiling of Rs 25 lakh. The Stamp Duty reimbursement or exemption shall not be available for agricultural land. It shall be available only for such parcel of land which is exclusively used for setting up of manufacturing facilities. In case of units run by women entrepreneur, 100% exemption for payment of stamp duty will be provided

• SGST exemption :

  The eligible units will be exempted 100°/a SGST for a period of 15 (fifteen) years from the date of commencement of commercial production. Reimbursement of 100% SGST as per the following scale will be given:

  Category	Limited of Tax Reimbursement
  Micro Enterprises	15 (fifteen) years subject to maximum of 250% of Fixed capital Investment
  Small Enterprises	15 (fifteen) years subject to maximum of 200% of Fixed capital Investment.
  Medium Enterprises	15 (fifteen) years subjectt6 maximum of 180% Enterprises of Fixed capital Investment

  The benefit of tax reimbursement under the policy: shall be subject to the condition that the unit after having availed of the benefit shall continue its production or operation at least for the next five years not below 70°/a of the average production for the preceding five years.

Not Applicable

Not Applicable

Quality Certification Subsidy

• The fee payable for obtaining BIS/lSO/FSSAl/AGMAPIK/HALLMAPK/SI LK MARKZED Certification etc. by eligible unit, Will be provided subsidy up to the extent Of 100% subject to a ceiling of 20 lakhs per unit.