Industrial & Investment Policy of Assam, 2019
100%
SGST Reimbursed (Up to 15 Years)
₹2/unit
Power Subsidy (5 Years, Max ₹50L/yr)
100%
Stamp Duty Exemption (Max ₹25L)
5 Years
Policy Operation Term
Assam's core industrial development framework
The Industrial & Investment Policy of Assam, 2019 is the State's core industrial incentive framework, positioning Assam — a gateway to the ASEAN economies — as a preferred investment destination. It superseded the 2014 policy (units eligible under 2014 continue to be governed by it). Investor facilitation is led by the Invest Assam Foundation (IAF), modelled on Invest India.
| Key Parameter | Provision / Detail |
|---|---|
| Issuing Authority | Industries & Commerce Department, Government of Assam (Notification No. CI.137/2017/661) |
| Effective Date / Term | From 01.09.2019, for a period of 5 years |
| Ease of Doing Business | Single Window clearance under the Assam Ease of Doing Business Act, 2016 |
| Aggregate Cap | 'Other incentives' together not exceeding 100% of Fixed Capital Investment (excluding SGST reimbursement) |
Priority sectors targeted for accelerated growth
Manufacturing Thrust Areas
- •Food processing, cold chain & cold storage
- •Bamboo, Sugar, Jute, Plastic
- •Pharmaceuticals
- •IT / ITES (hardware, software, BPO, data)
- •Textile, Engineering
- •Rubber, Automobile
Services Thrust Areas
- •Hotels / Resorts (3-star and above)
- •River cruise
- •Power generation via green technology
Key definitions and local employment requirements
| Term / Requirement | Details & Criteria |
|---|---|
| Large Unit | Investment in plant & machinery more than ₹10 Crore (or as amended); MSMEs are defined as per the MSMED Act, 2006. |
| New Industrial Unit | Commenced commercial production in Assam during the policy validity period. |
| Fixed Capital Investment (FCI) | Investment in P&M and land & building directly connected with the manufacturing process (or hotel premises / river cruise). Land valued at registration value or actual cost, whichever is lower; proportionate stamp duty & registration fee included; development cost excluded. |
| Plant & Machinery | Newly purchased and erected at site; relocated / recycled / refurbished P&M is not eligible. |
| Renewable Energy | Investment ≥ ₹5 Crore in green power (e.g. solar) replacing ≥40% of conventional consumption may qualify for tax reimbursement (ceiling as for medium/large units). |
| Local Employment | Minimum 80% people of Assam in the Managerial Cadre and minimum 90% in the Non-Managerial Cadre. |
| Eligibility Certificate | Apply online within 6 months of commencement of commercial production. |
| Eligible Entities | Company, corporation, co-operative, partnership, proprietorship, trust, FPO/FPC and State Government units. Central PSUs are not eligible. Cash payments are treated as ineligible investment. |
100% SGST reimbursement scale and limits
Reimbursement of 100% of SGST paid (via debit in the electronic cash ledger), on the following scale:
| Category | Areas other than special parks | Plastic / Bamboo / Food / Tea & other Government parks |
|---|---|---|
| Micro Enterprises | 15 years, max 200% of FCI | 15 years, max 250% of FCI |
| Small Enterprises | 15 years, max 150% of FCI | 15 years, max 180% of FCI |
| Medium & Large Enterprises | 15 years, max 150% of FCI | 15 years, max 150% of FCI |
For a Mega unit given customized / special incentives, the monetary ceiling shall not exceed 200% of FCI. Reimbursement is conditional on the unit continuing production for at least 5 further years at not below 75% of the average of the preceding 5 years; violation triggers recovery of the full tax availed.
Subsidies under Clause 14 (Capped at 100% of FCI)
The following 'other incentives' apply, with the aggregate from all of them not exceeding 100% of Fixed Capital Investment (SGST reimbursement is excluded from this 100% ceiling):
| Incentive Type (Clause) | Quantum & Ceiling |
|---|---|
| Power Subsidy (14.1) | ₹2.00 per unit consumed for 5 years from commercial production, max ₹50 Lakh/annum, not exceeding 100% of P&M investment (APDCL connection only). |
| Generating Set Subsidy (14.2) | 50% of cost (cost + taxes + transport), limit ₹20 Lakh; DG capacity equal to sanctioned power. |
| Stamp Duty Reimbursement (14.3) | 100%, ceiling ₹25 Lakh; not for agricultural land or urban manufacturing land; only for land exclusively used for manufacturing / hotel. |
| Technology Transfer & Quality / ZED Certification (14.4) | 75% of fees (BIS/ISO/FSSAI/AGMARK/HALLMARK/SILK MARK/ZED and technology transfer), ceiling ₹10 Lakh per unit. |
| Interest Subsidy on Working Capital Loan (14.5) | 2% on outstanding WC loan for 5 years, ceiling ₹50 Lakh, not exceeding 100% of P&M investment. |
| MSME Stock-Exchange Listing (14.6) | 30% of Public Issue expenses (BSE/NSE), maximum ₹5 Lakh. |
| Environmental Compliance / ETP (14.7) | 50% of capital cost, maximum ₹25 Lakh per unit; not for hotel industries. |
| Private Sector Infrastructure Developer (14.8) | 30% subsidy (excluding land value), ceiling ₹3 Crore, for parks with land ≥30 acres; released after completion with 30% occupancy. |
| Employment Generation (14.10) | One-time ₹10,000 to the employer for each local youth employed. |
Clause 14.9 (special dispensation for units with FCI above ₹1,000 Crore or generating ≥2,000 regular employment) was subsequently replaced by the Industrial & Investment Policy of Assam (Amendment), 2023 — see Linked Schemes.
Incentive approval flow and timeline
- •District Level Committee (DLC): Grants Eligibility Certificates and approves subsidy for Micro units (P&M ₹25 Lakh or below), chaired by the Deputy Commissioner.
- •State Level Committee (SLC): Handles all other units (P&M above ₹25 Lakh), chaired by the senior-most Secretary, Industries & Commerce; meets at least once a quarter.
- •Investment Intention: Submitted to the jurisdictional DICC within 30 days of IEM / Udyog Aadhaar acknowledgement, with quarterly investment statements until commercial production.
- •Claims: SGST is processed per the Finance (Taxation) Department notification; other incentives must be applied for within 6 months of obtaining the Eligibility Certificate, scrutinized by DICC → SLC → Government, and disbursed via Direct Benefit Transfer (DBT).
Activities and industries excluded from incentives (Annexure I)
- •Tobacco & manufactured tobacco substitutes (Chapter 24); Pan Masala (Chapter 21).
- •Plastic carry bags of less than 20 microns.
- •Goods produced by petroleum / gas refineries (Chapter 27); coke, and conversion of coal to coke (incl. Calcined Petroleum Coke).
- •Purely peripheral activities — preservation, cleaning, packing / re-packing, labelling / re-labelling, sorting, alteration of retail price, etc.
- •Saw mill; tea; galvanisation / corrugation of sheet; marble & decorative-stone cutting and polishing; paper cutting from roll paper.
- •Coal to washed / sized coal; conversion of plain rod to tor rod.
- •Refining and/or packaging of edible oil (but manufacturing of edible oil remains eligible); refining of engine oil; purification / packaging of drinking water.
- •Production of cooked food, sweetmeat and namkeen where P&M investment is less than ₹1 Crore.
Integration with amendments and central programs
| Scheme | Relationship & Details |
|---|---|
| I&IP Assam (Amendment), 2023 — Mega Projects | Replaced Clause 14.9 of this policy with a customized Mega Project incentive framework (minimum ₹100 Crore investment and 200 permanent jobs, approved by the Empowered Committee & Cabinet). |
| North East Industrial Development Scheme (NEIDS), 2017 | Central scheme (w.e.f. 01.04.2017, 5 years): 30% capital investment subsidy (ceiling ₹5 Cr); 3% central interest incentive on WC (5 yrs); 100% insurance premium reimbursement (5 yrs); CGST & IGST reimbursement (5 yrs); income-tax reimbursement (first 5 yrs); transport incentives (20% rail, 20% inland waterways, 33% air); additional 3.67% employer EPF. Total capped at P&M investment, max ₹200 Cr. |
| Industrial & Investment Policy of Assam, 2014 | Predecessor policy; units eligible under 2014 continue to be governed by it. |
| Sector Policies | Policies like the Assam Ethanol Production Promotion Policy and the Aerospace & Defence Manufacturing Policy build additional incentives on top of this framework. |
Source: Industrial and Investment Policy of Assam, 2019 (Notification No. CI.137/2017/661 dated 30.07.2019), Industries & Commerce Department, Government of Assam. All figures are reproduced from the primary policy document. The policy is effective from 01.09.2019 for a period of 5 years, and its Clause 14.9 was later amended by the I&IP Assam (Amendment), 2023. This page is an informational summary and not a substitute for professional advice. Confirm eligibility, claim periods, and current guidelines before filing.