The Department for Promotion of Industry and Internal Trade (DPIIT) was established in the year 1995 and was reconstituted in the year 2000 with the merger of the Department of Industrial Development.
Eligible Units: - For both New and Expanding Units
The Capital Investment Incentive, is a special financial benefit provided for eligible businesses that are either new or expanding. For manufacturing, minimum investment of INR 1.00 Crore and for service units, minimum investment of INR 50.00 Lakh in eligible value of building and all other durable physical assets is mandated respectively. For Micro industries, the minimum investment limit shall be INR 50 lakhs for both manufacturing and service sector.
An industrial unit will be considered as an ‘Expansion’ only if the cost of new P&M required is at least 25% of the total investment in the unit.
All eligible units located in Zone A category blocks in the States of North Eastern Region will be provided Capital Investment Incentive @30% of the investment made in plant and machinery (for the manufacturing sector) or for construction of building and installation of other durable physical assets (for services sector) with a maximum limit of Rs. 5.00 crore. For those sectors where GST is not applicable, the maximum limit of this incentive will be Rs. 10.00 crore.
All eligible units located in Zone B category blocks in the States of North Eastern Region will be provided Capital Investment Incentive @50% of the investment made in plant and machinery (for manufacturing), or for construction of building and installation of other durable physical assets (for services sector) with a maximum limit of Rs. 7.50 crore. For those sectors where GST is not applicable, the maximum limit of this incentive will be Rs. 10.00 crore.
A new unit registered under the scheme will not be eligible to avail the benefit under substantial expansion. A unit can avail this incentive only once under the scheme. Please refer to the scheme guidelines to know more.
*Disclaimer : The incentives under this scheme may be granted by the competent authority as laid out in the guidelines, subject to the availability of funds and discretion of DPIIT.
