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TIIPIS

The State Government has introduced the Tripura Industrial Investment Promotion Incentives Scheme (TIIPIS) offers incentives for setting up industrial units in the manufacturing and service sector. The main aim of the scheme is to provide the necessary infrastructure to ensure sustained industrialisation in Tripura. In this article, we look at the Tripura Industrial Investment Promotion Incentives Scheme (TIIPIS) in detail.

Applicability

The Tripura Industrial Investment Promotion Incentives Scheme applies to the following entities:

Micro, Small and Medium Enterprises (MSME) commencing its commercial production activities in the state during the years of 2017-2020.
The private sector, co-operative sector, self-help-groups, joint sector and companies owned or managed by the State Government.

It does not apply to the enterprises that have commenced commercial production before April 2017 and to all large scale units and industrial activities listed in the exception list. Note: The list industrial activities exempted under this scheme are attached below for your reference.

Eligibility Criteria for Incentives

Any industrial enterprise applying for incentives under this scheme is required to produce “Incentives Eligibility Certificate” in the prescribed format from the concerned authority of the State Government. The Incentives Eligibility Certificate will not be issued unless:

The project is approved with industrial license, letter of intent or a registration certificate under the Industries (Development and Regulation) Act, or issuance of Industrial Approval reference number or an Acknowledgement of online filing of Udyog Aadhaar Memorandum through the national portal for registration of MSMEs.
The enterprises are identified with the issuance of a compulsory license as notified by the Central or the State Government.
The unit has gone into commercial production.

Capital Investment Subsidy

All eligible enterprises will be entitled to an incentive at the rate of 30% of the fixed capital investment with an aggregate ceiling of Rs. 60 lakhs to each enterprise. The enterprises belonging to the Thrust Sector will be entitled to receive incentives at the rate of 40% of the fixed capital investment with an overall ceiling of Rs. 70 lakhs per enterprise. Proprietorship units belonging to ST, SC and Women individuals or partnership business where all partners (women) belong to ST, SC communities will be eligible for an additional subsidy at the rate of 2.5% on fixed capital investment, with an aggregate ceiling of Rs.60 lakhs or Rs. 70 lakhs per enterprise.

Partial Reimbursement of Power Charges

Eligible enterprises will be provided with power subsidies at the rate of 25% of the actual power charges paid by an enterprise after 5 years of operation. The incentive will be for 5 years, with an annual upper ceiling of Rs. 6 lakhs for enterprises that have an employee strength of 20 to 50 persons, Rs. 9.00 lakhs for entities with 51 to 100 employees and Rs. 12 lakhs if the number of employees exceeds 100.

Partial Reimbursement of Interest on Working Loans

Interest incentives at the rate of 4% on working capital loan availed would be provided for 5 years with a ceiling of Rs. 3.00 lakhs per year for each enterprise. The reimbursement of interest subsidy is limited to 4% of the 25% turnover of the enterprise in the given year.

Reimbursement of Standard Certification Charges

Reimbursement of 100% of the total cost for getting Standard certificates like ISO-9000 Quality Management system, ISO-14000 Environmental Management System, ISO-18000 Occupational Health and Safety Standards, BIS Certification, Green Energy Certificate, Bureau of Energy Efficiency Certificate, FSSAI License, AGMARK, Forest Stewardship Council (FSC), etc. All eligible enterprises will be allowed a one-time full reimbursement of fees, charges or other expenses on account of obtaining standard certification.