Major Changes in RIPS – 2014

Major Changes in RIPS-2014

  1. 1.      Eligibility Criteria:
  • Ø The restrictions of minimum investment and employment have been lifted up.
  • Ø The enterprise established at the site of the existing enterprise, which were ineligible under RIPS-2010 made eligible, under new scheme.
  • Ø Tourism sector has made eligible under the scheme.

 

  1. For Manufacturing sector employment generation subsidy enhanced:
  • Ø The amount of employment generation subsidy per employee per year has been increased from Rs. 18000/- to Rs. 30000/- for Women/ SC/ST/ Person with disability (PwD) categories of employees and for others from Rs. 15000/- to Rs 25,000/- for the year 2014-15.
  • Ø 5% increase in employment generation subsidy per employee has also been proposed on 1st April of every year.
  1. 3.   Benefits for Following Service sectors:-
  • Ø Hospitals, Dispensaries, Poly Clinics, Diagnostic Centres, Research and Development Laboratories/ Centres, having minimum investment of five crore rupees.
  • Ø Universities and Colleges affiliated to any University, having minimum investment of ten crore rupees.
  • Ø Vocational Training & Skill Development Centers, having the minimum investment of fifty lakh rupees.
  • Ø Development of Industrial Parks, including Textile Parks, having minimum investment of five crore rupees.
  • Ø Enterprises providing entertainment, having minimum investment of ten crore rupees.

 

4. Additional Benefit of Reimbursement of VAT to Service Sector:

  • Ø Reimbursement of 50% of amount of VAT paid on purchase of plant and machinery or equipment up to seven years, however, for enterprises engaged in entertainment   25% reimbursement of VAT has been allowed.
  • Ø 10% additional reimbursement of VAT for Women/SC/ST/Person with disability service enterprises.
  • Ø 10% additional reimbursement of VAT for Enterprise established in Backward Area.
  1. 5.      Concept of Backward Area and Most Backward Area:
  • Ø For enterprises located in backward area, the period of benefit has been extended to ten years, other than the benefit of interest subsidy.
  • Ø For enterprise located in backward area other than the cement manufacturing unit, the benefit may be provided which are provided for such enterprises in most backward area, on the recommendation of State Empowered Committee.
  • Ø 20% Additional investment subsidy for a period of seven year for manufacturing enterprise, other than cement manufacturing enterprise, located in most backward area has been allowed.
  • Ø 20% Additional Reimbursement of VAT for seven years, to the service enterprise located in a most backward block has been allowed.
  1. 6.      Concept of Thrust sector introduced:
  • Ø Additional benefits has been proposed to the following thrust sectors:
  1. Ceramic and Glass Sector
  2. Dairy Sector
  3. ESDM Sector
  4. Industrial Gases Sector
  5. MSME Sector
  6. Pharmaceutical Sector
  7. Plastic to Oil Manufacturing Sector
  8. Power Loom Sector
  9. Textile Sector
  10. Tourism Sector
  11. 7.     Additional benefits to Textile sector
  • Ø Capital subsidy on zero liquid discharge based effluent treatment plant has been allowed
  • Ø 50% of reimbursement of VAT on purchase of yarn, fibre, recycled fibre yarn, cotton and pet bottles for use in manufacture of goods within the State
  1. 8.       Benefits to tourism sector
  • Ø Investment subsidy of 50% of VAT and CST for seven years
  • Ø Employement generation subsidy upto 10% of VAT and CST for seven years
  • Ø Reimbursement of 25% of amount of VAT paid on purchase of plant and machinery or equipment for seven years
  • Ø Exemption from payment of 50% of Entertaiment for seven years
  • Ø Exemption from payment of 100% of luxury Tax for seven years
  • Ø Land allotment in urban and rural areas at DLC rates
  • Ø 50% exemption from stamp duty, however 75% exemption from payment of stamp duty for heritage property and
  • Ø 50% conversion charges, however 100% exemption from payment of conversion charges for hertigae property
  1. 9.      Power to Grant Customize Packages Enhanced:
  • Ø In order to exploit the mineral resources of the State, power to grant customized package for manufacturing enterprise other than cement manufacturing enterprise has been proposed making investment more than Rs.100 crore and using the minerals as specified in the scheme as raw material has been proposed.

 

  1. 10.   Expansion redefined:
  • Ø The expression Expansion has been modified, diversification and modernization has been included in the definition of expansion.
  • Ø Minimum investment limit in case of expansion has been proposed to the extent of 25% of the existing investment.
  1. 11.   Maximum Limit of Subsidy:
  • Ø A cap on subsidy to the extent of 100% of investment or eligible fixed capital investment made by the enterprise has been proposed.
  1. 12.    Corporate social responsibility:
  • Ø For availing the benefit under the scheme the condition of investment of funds earmarked for corporate social responsibility (CSR) in the State has been proposed first time in the scheme.
  1. 13.    Environmental Protection:
  • The condition of consent to “operate” from central / state pollution control board has been incorporated in the scheme first time, so that the benefits would only be allowed as long as the consent to operate is with the enterprise.
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