development, operation and maintenance of SEZ units. |
A) Brownfield electronic manufacturing clusters are those |
||
( Raw materials, capital goods, consumables, components |
existing areas which are notified by DeitY. For a unit to be |
||
& spares for authorized operations) |
eligible for Modified Special Incentive Package Scheme( M- |
||
n |
100 % income tax exemption on export income SEZ units |
SIPS) it should be located within the brownfield EMC. DeitY |
|
under Section 10AA of the Income Tax Act for the first 5 |
notifies brownfield EMC considering geographical area, |
||
years, 50 % for the next 5 years thereafter and 50 % of the |
infrastructure availability etc. So it is possible to notify new |
||
ploughed-back export profit for the following 5 years. |
brownfield EMC if it is already not notified. |
||
n |
Exemption from Central Sales Tax, exemption from service |
B) The brownfield EMC’ s already notified can be seen from the |
|
tax. Exemption from state sales tax and other levies as |
following link-( http:// deity. gov. in / esdm). The focus is on |
||
extended by the respective state governments. |
upgrading infrastructure and providing common facilities |
||
n |
Single-window clearance for central and state level |
for ESDM units. |
|
approvals. It should, however, be noted that a minimum |
C) Greenfield electronic manufacturing clusters are new |
||
alternate tax @ 18.5 % and DDT are applicable in case of |
industrial areas which are being promoted for attracting |
||
units operating in SEZs and other export-oriented parks. |
investments in electronics. The list of zones thus far |
||
Q. 27 What are Export Oriented Units( EOU’ s), Export Technology
Hardware Parks( ETHP) & Software Technology Parks( STP’ s)? n
Units can be set up as an Export Oriented Unit or in Export
Technology Hardware Park or Software Technology Park.
Units undertaking exports of their entire production of
|
approved by DeitY can be seen from the following link-
( http:// deity. gov. in / sites / upload _ files / dit / files / EMC _ Apprai sal. pdf)
The list of nodal officer to be contacted for EMC can be seen from the following linkgoods
|
||
and services, except permissible sales in DTA, may |
( http:// deity. gov. in / sites / upload _ files / dit / files / Nodal- |
||
be set up as an EOU / EHTP or STP |
officer _ EMC. pdf) |
||
n |
Income tax holiday of 10 years for the competing policies |
Q. 30 What is the mode of implementing the scheme of EMCs? |
|
like STPI / EHTP / BTP etc are already over.( Ended on 31 |
The scheme is implemented through the special purpose |
||
March 2011). |
vehicle( SPV) which will carry out the business of developing, |
||
n |
Rest of the incentives is similar to those available for SEZ |
operating and maintaining the infrastructure, amenities and |
|
units given in Q. 26 above. |
other common facilities created in EMCs. |
||
Q. 28 What is national manufacturing policy and national investment |
Q. 31 Who will be the chief promoter? |
||
and manufacturing zones( NIMZs)? |
Chief promoter for the purpose of the scheme is a legal entity |
||
The National manufacturing policy, approved on October 25, |
which initiates the proposal for a project in a brownfield or |
||
2011, is the first of its kind for the manufacturing sector as it |
greenfield EMC and takes such steps as are necessary for |
||
tries to address some critical constraints for Indian |
getting the project approved under the scheme, getting the |
||
manufacturing sector in the area of regulations, infrastructure, |
SPV formed and entrusting the project to an SPV in |
||
skill development, technology, availability of finance, exit |
accordance with the scheme and guidelines. A chief promoter |
||
mechanism etc. The policy envisages the creation of National |
may be an individual, registered company or society, industry |
||
Investment and Manufacturing Zones( NIMZs). NIMZs will be |
association, financial institution, R & D institution, state or local |
||
large areas( minimum 5000 hectares) of developed land, with |
government or their agencies or unit / units within an EMC. |
||
requisite eco-system for promoting world class manufacturing |
Q. 32 What are the financial assistance provided for EMC’ s? |
||
activity. NIMZ will be a self-governing and autonomous body. |
Brownfield EMC: The assistance will be restricted to 75 % of |
||
There will not be any fiscal incentives like available for SEZs |
project cost subject to ceiling of INR 0.5 Billion. The remaining |
||
but some of the incentives include: |
project cost shall be financed by other stakeholders of the |
||
n |
Relief from capital gains tax on sale of plant and machinery |
EMC with a minimum industry contribution of 15 % of the |
|
of a unit located in NIMZ will be granted in case of reinvestment |
project cost. |
||
of sale consideration within a period of 3 years |
Greenfield EMC: The assistance will be restricted to 50 % of the |
||
for purchase of new plant and machinery in any other unit |
project cost subject to ceiling of INR 0.5 Billion for every 100 |
||
located in the same NIMZ or another NIMZ |
acres of land. The remaining project cost shall be financed by |
||
n |
The transfer of assets belonging to a firm which has been |
other stakeholders of EMC with a minimum industry |
|
declared sick will be facilitated by the SPV of the |
contribution of 25 % of the project cost. |
||
concerned NIMZ |
The administrative expenses would be restricted to 3 % of the |
||
n |
The policy provides for specific incentives for technology |
central assistance in the project. Expenses towards preparation |
|
development and there is a special focus on green / clean |
of detailed project report would also be considered a part of |
||
technology. |
project cost. |
||
n |
Special focus on skills development |
Q. 33 What is the land ownership in EMC? |
|
n |
Special benefits / measures for SMEs in national |
The scheme supports any of the following different models of |
|
manufacturing policy. |
land ownership for an EMC: |
||
n |
The details can be seen from the following link- |
n |
The land for the EMC & Project is owned by the applicant. |
http:// dipp. nic. in / English / Policies / National _ Manufacturing |
n |
The land for the project is owned by the applicant but |
|
_ Policy _ 25October2011. pdf) |
remaining land is not owned by the applicant. In such |
||
Q. 29 What are Electronic Manufacturing Clusters? |
cases, it is for the applicant to demonstrate his ability to |
||
Electronic Manufacturing Clusters: There are two types of EMC’ s: |
meet the terms of scheme and guidelines with the |