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 |
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