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The total number of capital investment subsidy cases cleared and disbursed by the Government till 31.03.2014 value-wise is as under:-
Type of capital investment subsidy cases with value | Numbers |
less than 1 crore per unit | 261 |
between 1 to 10 crores | 33 |
between 10 to 50 crores | 08 |
more than 50 crores | 01 |
The procedure for clearing incentives proposals for smaller units is simpler as compared to bigger units. Central Capital Investment Subsidy claims upto ₹ 5 lacs are approved by the District Level Committee (DLC), whereas claims above ₹ 5 lacs but upto ₹ 1.50 crores are approved by the State Level Committee (SLC). Claims in excess of ₹ 1.50 crores and upto ₹ 30 crores are appraised by the Directorate but approved by the Empowered Committee (EC) constituted for the purpose. Claims in excess of ₹ 30 crores are approved by the Union Cabinet after being appraised by the SLC / EC.
In addition to the above, the procedure for claiming subsidy has further been streamlined and the different approving authorities are required to invariably take into consideration the value of plant and machinery as assessed by a financial institution. However self-financed micro-units have been exempted from investment appraisals for availing capital investment subsidy.
The data given above does not suggest that level of scrutiny is adversely affecting industrialization in NE States.
The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.
Capital investment subsidy approval thresholds allocate claims across local, state and central approvers and require valuation, with micro unit exemptions. Capital investment subsidy under NEIIPP uses a tiered approval regime by claim size: local and state authorities handle smaller claims, central appraisal with empowered-body approval covers intermediate claims, and the largest claims proceed to cabinet approval after appraisal. Approvals must generally consider financial institution assessments of plant and machinery, while self financed micro units are exempt from investment appraisals. Case counts are reported by investment bands and the data does not indicate that scrutiny is hindering industrialisation.Press 'Enter' after typing page number.