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SUBSIDIES AND INCENTIVES

Government of Meghalaya will provide a package of subsidies, incentives and assistance to the small scale as well as medium and large categories of industry in Meghalaya under “The Meghalaya Incentives Scheme 1997.

Further a ‘Tourism unit’ as defined at Annexure of this policy, will also be entitled to the above package of subsidies, incentives and assistance.

D. 1.    Criteria For Eligibility

D.1.1    Validity Period

This new package of incentives herein after referred to as ‘ Meghalaya Incentive Scheme 1997’ shall remain in operation for a period of 5 (five) years commencing from Fifteen August 1997 or till such time as the Government may deem fit. Government also reserves the right to make any amendments to the scheme from time to time. However, in such case, proper notice will be given and also final commitments already made will not be affected by such amendments.

D.1.2    Effective Date

Effective date of implementation of Meghalaya Incentive Scheme 1997 is Fifteenth August 1997 and from this date the Meghalaya Package Scheme of Incentives 1988 and other relevant Industrial Policy resolutions will cease to be operative unless specifically provided for hereinafter.

Those Industrial units which have been committed to by Government for incentives under the Meghalaya Package Scheme of incentives 1988 will continue to avail such Incentives under the said scheme for the period of commitment.

Units enlisted under Meghalaya Package Scheme of Incentive 1988, but completing final effective steps after the effective date of Meghalaya Incentive Scheme 1997 will be covered by the Meghalaya Incentive Scheme 1997.

D. 1.3   Incentives under the  Meghalaya Scheme 1997 will be available to eligible units in the private sector, Assisted Sector, Joint Sector, State Public Sector and the Co-operative Sector.

D.2       Eligible Unit

D.2.1     Only new units set up on or after Fifteenth August 1997 and existing units, undertaking expansion, modernisation or diversification at the same location or at any other place in the State of Meghalaya will be eligible for incentives under Meghalaya Incentive Scheme 1997 provided that;

a.        A unit employs local tribal people of not less than –

  1. Sixty percent in non-managerial cadres at the inception stage

  2. In the managerial cadre, sixty percent employment of local tribal people in non-technical posts and fifty percent in technical/supervisory/skilled categories.

  3. The unit should further give an undertaking that if these conditions are violated, State Government Subsidies/Incentives so availed by them would be fully refunded.

b.        In exceptional cases where an unit can prove to the satisfaction of the Single Window Agency that persons with required skill and expertise are not locally available, relaxation of the above clause will be allowed for a specified period.

 

D.2.2:    Non-eligible Unit

 

  1. All types of Saw Mills and Veneer Mills.

  2. Atta - Chakki / Rice Mills.

  3. Forest Based Industries not approved by Govt.

  4. A Unit shall not be eligible if the location of its registered office is not within the state of Meghalaya.

Provided that the Single Window Agency may permit suitable relaxation of clause (d) above, under appropriate circumstances.

 

D.2.3    Central Public Sector Undertakings will not be considered as eligible for incentives under Meghalaya Incentive Scheme 1997.

 

D.3:      Definition

 

D.3.1     New unit: An Industrial or Tourism unit, which has taken all the initial effective steps on or after Fifteenth August 1997 , will be considered as a new unit.

 

D.3.2    Existing Unit: A unit which is or was in commercial production at any time prior to Fifteenth August 1997 will be considered as an existing unit for the purpose of the Meghalaya Incentive Schemes 1997.

 

D.3.3    Effective Steps : Effective steps for implementation of the project will comprise of initial effective steps and final effective steps.

 

i.   A Unit will be deemed to complete the initial effective steps if all the following have been achieved. 

  1. Effective possession of land.

  2. Registration of the firm or the company or the society or the trust with the appropriate authority.

  3. Provisional registration with the appropriate authority.

  4. Preparation of Project Report.

  5. Sanction of Power Connection.

  6. Settlement of the means of finance for the project including sanction of the terms loan.

Provided that in case of a Tourism unit, the registration authority will be the Directorate of Tourism.

ii.   A unit will be deemed to have completed the final effective steps if the following have been achieved-

  1. Total disbursement of term loan.

  2. Receipt of all relevant approvals and clearances from the appropriate authorities.

  3. Connection of power.

  4. Allotment of raw materials wherever applicable.

  5. Sanction of the plant.

  6. Commissioning of the plant.

  7. Receipt of local employment certificate.

Provided that in case of a Tourism Unit, step (f) above will not apply and will be replaced by the follo9wing ‘fit to render services for which the unit is set up’.

D.3.4.    The incentives under the Scheme cannot be claimed unless the Eligible Certificate has been issued under the Scheme by the implementing Agency concerned and the unit has complied with the stipulations and conditions of Eligibility.

D.3.5.    Eligibility Certificate: Eligibility Certificate is the certificate, which will be issued by the implementing Agency, which is the Directorate of Industries for the SSI Sector and the Meghalaya Industrial Development Corporation Ltd. (MIDC) for the medium and large units. This certificate will be issued after ensuring that all the norms for eligibility have been fulfilled.

  1. Local Employment Certificate will also be issued by the concerned Implementing Agency where necessary.

  2. Completion of initial effective steps will qualify the unit for issue of a provisional eligibility certificate based on which sanction and disbursement of subsidy for feasibility study cost as well as the development subsidy can be made.

  3. Completion of the final effective steps will be required for issue of the final eligibility certificate and disbursement of the remaining incentives under the Scheme.

  4. For benefits of remission/exemption of Meghalaya Sale Tax, a separate eligibility certificate shall be obtained from the State Sale Tax Authorities in accordance with the Meghalaya Sale Tax Act and Rules.

Provided that in case of a Tourism Unit the implementing Agency shall be the Directorate of Tourism except that the disbursement of all subsidies, incentives and assistance will be made by Meghalaya Industrial Development Corporation.

D.3.6.    Fixed capital investment: means investment made in land, buildings and plants and machinery of the approved project of the eligible unit on after the Fifteenth August 1997 subject to other conditions laid down in the Scheme.

D.3.7    Hundred percent Export Oriented Unit is a unit, which has been approved under the EOU scheme of Ministry of Commerce Government of India.