Project subsidy in india

Project subsidy in INDIA

INDUSTRIAL UNITS OTHER CHARGES

• · Basic Sale Price (BSP): This is actually the price which is advertised by developers and forms the main cost of your property.

• · External Electrification Charges(EEC): This is the price charged by developer to lay down wires and cables from electricity consumption meter to the Apartment.

• · Fire Fighting Equipment Charges (FFEC): This is pretty self explanatory. All projects residential or commercial are supposed to install fire safety devices and fire fighting equipment.

• · Infrastructure Development Charges (IDC) : These charges are paid direct to state government by the developer for developing the infrastructure for the project. The charges vary from state to state.

• · External Development Charges (EDC): These charges are again paid direct to state government by the developer for developing the external areas surrounding the project. The charges vary from state to state. .

• · Club Membership: This has become a common norm these days to create a club inside a society itself for recreational activities. Your society may or may not have this facility but if it has, it does NOT come FREE. You need to pay a price for it and it is NOT optional.

• · Power back Up Charges: Power failure may be an alien term in developed countries but India certainly needs a good power back-up. There are charges for setting up the power back up plant inside your society and keep your air conditioners running even when there is a power cut from state electricity board.

INDUSTRIAL UNITS OTHER CHARGES

• · Electric Connection charges:. EEC is an amount charged by developer only to set up the infrastructure for bringing electricity to your apartment.You will have to pay the actual application fees for installing the electricity meter and a connection to the electricity board of your state for actually getting electricity.

• · Water, drainage and sewerage charges : You would be required to pay for water facility set up in the complex too. The charges are paid to government and will vary according to your state.

• · Stamp duty and registration charges: These charges are paid to state government for registering property on your name. This fees is charged as a percentage of the registered value of the property and varies from state to state.

• · Service Tax: This is an absolute killer as far as buying a property is concerned. Government charges you service tax on under-construction property at the current prevailing rate on the total cost of the apartment

• Maintenance deposits• The latest projects have a trend of charging upfront maintenance deposits for a longer period like 10 years instead

of the conventional periodic charges. This is to the disadvantage of the buyer as he will have to pay a lump sum amount initially for which he will pay interest on the borrowings.Given the current trend of inflation, this amount is likely to run out earlier than anticipated and again another deposit of maintenance funds has to be made.Most developers are insisting on it as it gives them a greater capital initially to play around with.

• Building insurance—buying a industrial property your bank will probably ask you to take out building insurance .• Utilities charges : Deposits and connection fees for electrical power, natural gas, phone, cable TV, Internet.

Electrical transformer (big green box) may be needed. Also trenching costs for underground utilities; meter installation for electric and gas, and tank purchase for propane or oil.

• Permits and license fees:• charges on of all permits and fees required in your jurisdiction to oprate industrial set uP

Industrial Park

• Objectives• Enhance the quality of life of the people of the state by providing better

and efficient public services through participation of the private sector.• To create quality infrastructure in the Industrial Infrastructure as to

Communication, Power, Road and Rail Connectivity, etc. • Creation of State Manufacturing Zones in line with the National

Manufacturing zones.• Facilitation of directed mega investments into the sectors offering huge

employment opportunities.• Creation and consolidation of sufficient land bank by the developing

agencies.• Encouraging private sector participation in infrastructure projects under

Public Private Partnership (PPP)•

Development Goals

• Development of Micro, Small and Medium enterprises• Speed and quality in connectivity of Rail and Road through infrastructure renewal

and expansion program.• Increasing power generation capacity• Enhancement of the supply of quality water to meet the demands and optimum

utilization of available water resources.• Promotion of Industrial Corridors to capitalize the locally available resources and

strengths.• Special benefits and measures for Small and Medium size Enterprises.• Maintain a sustained growth in productivity• Enhance gainful employment• Achieve optimal utilization of human resources• Attain international competitiveness and to transform India into a major partner

and player in the global arena. • Allow small enterprises in clusters to enjoy economies of scale in areas of

marketing, finance and infrastructure and technology.• Single- Window Clearance for the Industrial Proposals

Base (Flat) Infrastructure Include:

• Roads and Utilities (TP 1 & 2) : 550 kms• Potable Water: Raw Water Pipeline from• Periej Dam and Water Treatment• Sewage: CETP and STP (RecyclePlants)• Industrial Water: Effluent Pipeline from• AMC & Tertiary Treatment Plant• Stormwater: Collection and Treatment• Flood: River Training and Bunding• Solid waste: Transfer and Treatment• Power: Transmission and Distribution• ICT: Networks• Related Projects (RRTS/MRTS, Airport

MAJOR PLAYER OF INDIA

CONCEPT PROPOSED HITECH CITIES IN INDIA

CENTRAL GOVERNMENT SUBSIDY• Ministry of Textile Revised Restructured TUFS Subsidy w.e.f. 1st April, 2013•

– 6% Interest Reimbursement and 15% Capital subsidy or 30% Margin Money Subsidy on brand new Shuttleless Loom MSME subject to ceiling of Rs. 1.5 Cr. for TUF compatible specified machinery (Strictly adhered to TUF norms).

• 2% Interest Reimbursement or 8% Margin Money Subsidy on second hand shuttleless looms with 10 years vintage and with residual life of minimum of 10 years.

•

– 5% Interest Reimbursement or 15% Margin Money Subsidy for MSME Textile and Jute Sector subject to ceiling of Rs. 75 lacs.

•

– 5% Interest Reimbursement Plus 10% Capital Subsidy for specified Processing, Garmenting & Technical Textile Machinery.

•

– For standalone spinning units- 2% Interest Reimbursement for new stand alone/ replacement/ modernization of spinning machinery.

•

– 5% Interest Reimbursement for units having spinning capacity with forward integration also having matching capacity in weaving/ knitting/ processing/ garmenting.

•

• Note:- The Common Effluent Treatment Plant (CETP/ETP) will not be covered under TUFs.

•

CENTRAL GOVERNMENT SUBSIDY

• Ministry of Micro, Small and Medium Enterprises• Credit Link Capital Subsidy Scheme (CLCSS) for Technology Upgradation

of Small Scale Industries (SSI)•

– 15% of the Investment in Eligible Plant and Machinery restricted to Rs. 15 lac. The maximum limit of eligible loan under the revised scheme is Rs. 100 lakh.

•

• Ministry of Food Processing Industry• Scheme for Technology Upgradation/ Establishment/ Modernisation of

Food Processing Industries:– 25% of The Cost Of Plant & Machinery And Technical Civil Works Subject To A

Maximum Of Rs.50 Lakhs In General Areas And 33% Up To Rs.75 Lakh In Difficult Areas (Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim, North-Eastern States, Andaman & Nicobar Islands, Lakshadweep And Integrated Tribal Development Project (ITDP) areas).

Sr. No. Taluka/Area

Classification

The quantum of Industrial Promotion Subsidy

Every Year

1) Naxalism Affected Area VAT on local sales minus Input Tax Credit (ITC) or zero

whichever is more + CST payable +100% of ITC

2) No Industries District VAT on local sales minus ITC or zero whichever is

more + CST payable + 75% of ITC

3) Entire Vidarbha and Marathwada

(Other than Sr. No. 1 & 2.)

VAT on local sales minus ITC or zero whichever is


4) Group D+ Taluka (Other than

Sr.No.l and 3)



5) Group D Taluka (Other than

Sr.No. l and 3)



6) Group C Taluka VAT on local sales minus ITC or zero whichever is


7) Group B Taluka VAT on local sales minus ITC or zero whichever is


Industrial Promotion Subsidy (IPS) for MSMEs -

The eligible New/Expansion Micro, Small and Medium Manufacturing

Enterprises, which are set up in different parts of the State, will be eligible for

Industrial Promotion Subsidy (IPS) as follows.

Sr. No. Taluka/Area

Classification

The Industrial Promotion Subsidy Every

Year

1) Naxalism affected area 100% VAT on local sales minus Input Tax

Credit (ITC) or zero whichever is more + CST

payable

2) No Industries Districts,

Vidarbha and Marathwada

90% VAT on local sales minus ITC or zero

whichever is more + CST payable

3) Group D+ Taluka (Other

than Sr. No. 1 and 2)



4) Group D Taluka (Other

than Sr. No. 1&2)



5) Group C Taluka 60% VAT on local sales minus ITC or zero


•Industrial Promotion Subsidy for Large Scale Industries –

The eligible New/Expansion Large Scale Manufacturing Units,

which are set up in different parts of the State, will be eligible for

Industrial Promotion Subsidy (IPS) as follows –

•Exemption from Electricity Duty -

•For C, D & D+ exempted from payment of Electricity Duty for 15 years.

•100% Export Oriented Units (EOUs), Information Technology (IT) and Bio-Technology (BT)

units exempted from payment of duties for 7 years.

•Waiver of Stamp Duty

•Up to 31st March 2018 in C, D, D+ Talukas and No Industry District & Naxxlism Affected Areas.

•A and B areas, stamp duty exemption would be available are as under:

BT and IT units in public parks : 100%

BT and IT units in private parks : 75%

Mega Projects (For First Conveyance Deed Only) : 50%

•Power Tariff Subsidy

•New Micro, Small & Medium Enterprises will be eligible for power tariff subsidy.

•Rs 1/- per unit for the Units located in Vidarbha, Marathwada, North Maharashtra and the

Districts of Raigad, Ratnagiri and Sindhudurg in Kokan Region from the date of commencement

of commercial production, for the energy consumed and paid.

•Rs 0.50 per unit for the Units in other areas of the State for a period of 3 years from the date of

commencement of commercial production, for the energy consumed and paid.

•The Units in Group "A" areas will however not be eligible for this incentive.

•Incentives for Strengthening MSMEs and LSIs

The followings incentives shall be admissible to the MSMEs and LSIs so as to promote

Quality Competitiveness, Research & Development, Technology Upgradation, Water &

Energy Conservation, Cleaner Production Measures and Credit Rating -

(i) New MSMEs and Expansion thereof in all categories of areas will be eligible

for following incentives -

•5% subsidy on capital equipment subject to maximum of Rs. 25 lacs.

•75% subsidy on Quality Certification Expenses limited to Rs. 1 lac.

•25% Subsidy on Cleaner production Measures limited to Rs. 5 lac.

•75% Subsidy on Patent Registration Expenses limited to Rs. 10 lac. For National

Patents & Rs. 20 lac for the International Patents.

(ii) Incentives for Credit Rating of MSMEs in all categories of areas -

•75% of the cost of carrying out Credit Rating by Small Industries Development Bank

of India/ Government accredited Credit Rating Agency, limited to Rs. 40,000.

(iii) New MSMEs, LSI and Expansion thereof will be eligible for the following

Incentives in all categories of areas –

•75% of cost of water audit limited to Rs. 1.00 lac.

•75% of cost of energy audit limited to Rs. 2.00 lac.

•50% of the cost of Capital Equipment under the measures to conserve/recycle water,

limited to Rs. 5 lac.

•50% of the cost of Capital Equipment for improving energy Efficiency, limited to Rs.

5 lac.

REPORT BY

• SUNIL SETH KAKKAD

• EVERGREEN TOWER SECTOR 40 PLOT NO 32

• SEA WOODS WEST

• NAVI MUMBAI

• MOBILE :9820614117

• [email protected]

mailto:[email protected]

THANKYOU

Project subsidy in india

Real Estate

Transcript of Project subsidy in india