India and Assam Industrial Policy Incentives: An Interactive Explorer

Who it covers

Indian-incorporated and headquartered chip design companies with a significant operational and manpower presence in India, owned and controlled by Indian citizens (or OCIs, for the commercial category). Seed funding is reserved for startups and MSMEs.

“Companies incorporated and headquartered in India, having a significant operational and manpower presence within the country, and owned and controlled by Indian citizens or Overseas Citizens of India (OCIs), shall be eligible to participate.” Para 3.2, Eligibility (i), p.12

Key incentives

• Seed funding for startups and MSMEs (P-DLI) Figure stated in policy

  50% of project cost or Rs 15 Cr, whichever is lower, released as milestone-linked advances

  Cap: Rs 15 Cr per application

  “Milestone-linked advance Seed funding amounting to 50% of the project cost or ₹15 crore, whichever is lower, shall be provided per application” Para 3.2, fiscal support table, p.13

• Deployment-Linked Incentive Figure stated in policy

  9% of net sales of a newly launched chip, IP core or SoC

  Cap: Rs 30 Cr per application; Rs 120 Cr per company including group companies · Duration: 5 years

  “Reimbursement at the rate of 9% on net sales of target segments for a period of five (5) years, subject to a maximum incentive ceiling of ₹30 crore per application and an aggregate ceiling of ₹120 crore per company” Para 3.3.4, p.14

• Design infrastructure access Figure stated in policy

  Centralised access to national EDA tools, multi-project wafer (MPW) fabrication runs and IP cores, for startups, MSMEs and academic institutions

  “Centralized access to national EDA Tools grid; Centralized access to Multi-project Wafer (MPW) fabrication services; IP Cores” Para 3.2, fiscal support table, p.13

• Beyond Rs 15 Cr: equity co-investment or royalty financing Case-by-case, no fixed figure

  Government co-invests on the same terms as the company’s VC/PE investors, or finances against a 5% royalty on net revenue until 1.5x the support is repaid

  “the beneficiary company shall pay a royalty of 5% of net revenue of the product/ technology until an amount equivalent to 1.5 times the financial support extended has been recovered” Para 3.2, fiscal support table, p.13

Administering authority

India Semiconductor Mission (ISM) is the nodal agency and may run the design categories with C-DAC. Projects under Rs 100 Cr are approved by the Secretary, MeitY; Rs 100–500 Cr by the Minister; above Rs 500 Cr by the Union Cabinet.

Why it matters to you

The most accessible Semicon 2.0 pillar for an early-stage company: there is no capital-investment threshold, and a fabless design startup anywhere in India, including Assam, can seek up to Rs 15 Cr in seed funding. Seed support is not a pure grant, though. Exiting the scheme costs at least 1.5 times the total support received.

Who it covers

Units making semiconductor-grade raw materials (wafers, photomasks, photoresist, substrates, chemicals, gases), semiconductor equipment and its sub-assemblies, equipment R&D centres, and test and characterisation facilities. Applicants must own or license the technology (test facilities excepted) and clear a minimum capex and prior revenue bar. The applicant must be a private or public limited company, and new units and capacity expansions both qualify.

“The applicants are expected to “Own or possess licensed technologies for the proposed unit”, except for the Test and characterisation facility.” Para 3.4.3, p.14

Key incentives

• Raw materials, gases and chemicals: capital support Figure stated in policy

  30% of capital expenditure, pari-passu

  Cap: Entry bar: Rs 50 Cr minimum capex and Rs 20 Cr revenue (including group companies) in one of the three preceding financial years

  Gate: Epitaxial wafer plants do not use this row: the guidelines assess them as compound semiconductor fabs (Rs 500 Cr entry bar, 35%). See the Fabs & OSAT entry.

  “Setting up manufacturing facilities for semiconductor grade Raw Materials (Front end/ Back-end), such as, but not limited to, Wafer, Photo mask, Photoresist, Substrate, chemicals, gases, materials, glass for display fab etc. | ₹50 crore | ₹20 crore | 30% of Capital Expenditure on pari-passu basis” Para 3.4.3, table row (b), p.14

• Test and characterisation facilities: capital support Figure stated in policy

  30% of capital expenditure, pari-passu

  Cap: Entry bar: Rs 100 Cr minimum capex and Rs 40 Cr prior revenue

  “Semiconductor Test and characterization Facilities | ₹100 crore | ₹40 crore | 30% of Capital Expenditure on pari-passu basis” Para 3.4.3, table row (c), p.14

• Equipment, sub-assemblies and components: capital support plus PLI Figure stated in policy

  30% of capex, plus a production-linked incentive of 10% / 8% / 6% / 4% / 2% of bill-of-materials value sourced from domestic manufacturers

  Cap: Entry bar: Rs 300 Cr capex and Rs 120 Cr prior revenue. PLI capped at 50% of eligible capex · Duration: PLI for 5 years from FY 2028-29

  “30% of Capital Expenditure on pari-passu basis and Production Linked Incentive (PLI) of 10% / 8% / 6% / 4% / 2% of BoM value sourced from domestic manufactures. The PLI incentive will be applicable for 5 years starting from FY 2028-29 subject to an overall ceiling of 50% of the eligible capex.” Para 3.4.3, table row (d), p.14–15

• Equipment R&D facilities: capital support Figure stated in policy

  30% of capital expenditure, pari-passu

  Cap: Entry bar: Rs 300 Cr capex and Rs 120 Cr prior revenue

  Gate: The facility has to develop, test or improve equipment and subsystems used to make, test or package chips and displays. Its building and equipment count as capex; R&D running costs do not.

  “Setting up R&D facilities for semiconductor equipment | ₹300 crore | ₹120 crore | 30% of Capital Expenditure on pari-passu basis” Para 3.4.3, table row (a), p.14; Guidelines, Paras 4.1(c) and 5.1, p.6–7

• Documenting domestic sourcing for the PLI Figure stated in policy

  Each PLI claim needs a declaration from every Indian supplier counted, with invoice-level sales data and raw-material consumption. A part counts as domestic if it is made in India, even from imported raw material. The applicant answers for contract manufacturers actually producing in India.

  “Domestic Sourcing means the sourcing of assemblies, sub-assemblies, parts and components manufactured within India, using either domestically sourced or imported raw materials” Guidelines, Paras 2.11 and 9.7, Annexure-2, p.3, 10, 21–25

• Application fee and approval clock Figure stated in policy

  Non-refundable fee of Rs 10 lakh plus GST. ISM aims to acknowledge a complete application within 45 days and finish appraisal within 6 months of acknowledgement; the Union Cabinet then approves. Neither timeline is binding, and no timeline is set for the Cabinet stage.

  “The Nodal Agency shall complete the evaluation and appraisal of the project preferably within six months from the date of issuance of the acknowledgement letter.” Guidelines, Paras 7.3, 8.3 and 8.4, p.9; Annexure-1, item 1.14, p.17

• The acknowledgement date starts the capex clock Figure stated in policy

  Spending before ISM acknowledges your application is never reimbursed. Spending after acknowledgement but before Cabinet approval counts, but at your own risk if the project is not approved.

  “A Project company, at their own risk, may choose to start the investment after the date of acknowledgement. ... Any expenditure incurred on the project before the date of acknowledgement shall not be reimbursed.” Guidelines, Paras 3.5 and 4.2, p.5–6

• What counts as eligible capital expenditure Figure stated in policy

  Building, clean rooms, plant, machinery and equipment, including used or refurbished equipment with at least 5 years of residual life. Also associated utilities (captive power, effluent treatment, compressed air, chemical and gas storage and distribution, manufacturing IT and ERP), tools, dies and moulds, and freight, insurance, erection and commissioning.

  Cap: Excluded: land and its development, temporary structures, technology transfer, interest during construction, R&D cost, and extra warranty, AMC or consumables

  “Expenditure incurred on the following shall not be considered as eligible capital expenditure/investment under the Scheme: a. Expenditure incurred on Land and its development b. Temporary structures ... c. Technology Transfer, Interest During Construction (IDC), and R&D cost” Guidelines, Paras 2.7, 4.1 and 4.6, p.2–6

• How the money is released Figure stated in policy

  Pari-passu, through a No-Lien Account at an Indian scheduled bank. You deposit your share first, then ISM releases its pro-rata share. From the second instalment on, each claim needs a progress report, an auditor-certified fixed-asset register and an expenditure certificate.

  Cap: Security: a charge on fixed assets to the Centre, ranking behind bank lenders, plus a corporate guarantee for the full support amount wherever ISM holds a second charge, which in practice covers most bank-financed projects. Support is fixed at the approved eligible capex, so overruns, including a weaker rupee on imported tools, are the promoter’s cost

  “Pro rata payments for the claim shall be released after mobilization of corresponding share and its deposition by the applicant/project company, along with other sources, in the No-Lien Account (NLA)” Guidelines, Paras 9.1, 9.4, 10.4 to 10.6 and 13.11, p.9–15

• Lock-ins after approval Figure stated in policy

  Promoters keep at least 51% of equity and voting rights through the support agreement and 3 years after the commercial operation date. No merger, demerger or restructuring in that period without ISM approval. The unit must stay in commercial production for at least 3 years.

  Cap: Refunds (excess payments, false information, closure, insolvency) carry interest at the 3-year SBI MCLR, compounded

  “Applicant/ Promoter or group shall hold at least 51% of the total equity share capital with equivalent voting rights in the Project Company at all times during the Term of the FSA, including its three years of operation after COD.” Guidelines, Paras 13.4, 13.7, 13.8 and 13.13, p.14–16

• Reporting Figure stated in policy

  A self-certified progress report every fortnight (within 5 days) and a quarterly review report (within 30 days of quarter-end) until the whole project is in commercial production, then half-yearly reports.

  “All approved applicants shall be required to furnish self-certified Fortnightly Progress Report within 5 days and self-certified Quarterly Review Reports (QRRs) within 30 days from the end of each quarter” Guidelines, Para 12.2, p.13

• State incentives stack on top Figure stated in policy

  Support from a state government or its agencies is in addition to central support, and the state can join the No-Lien Account agreement and take a pari-passu charge on assets.

  “Fiscal Support, offered by the State Governments or any of its agencies or local bodies shall be over and above the fiscal support under the Scheme.” Guidelines, Paras 9.1, 13.5 and 13.11, p.9–15

Administering authority

India Semiconductor Mission (ISM) appraises and recommends. For every non-design category, approval is by the Union Cabinet.

Why it matters to you

This is the pillar closest to an Assam supply-base play. The raw-materials row (gases, chemicals, substrates) has the lowest entry bar in all of Semicon 2.0, at Rs 50 Cr capex with Rs 20 Cr of existing revenue, within reach of an established chemicals or industrial-gas MSME diversifying toward the Jagiroad OSAT cluster. The 16 Sep 2026 guidelines make the cash mechanics concrete: you deposit your own share in a No-Lien Account before each central release, land and technology-licence fees are never reimbursed, and refurbished tools count if they have five years of life left. Start no work before ISM acknowledges the application, because earlier spending is lost.

Who it covers

Silicon wafer fabs, compound semiconductor / photonics / sensor (MEMS) / discrete fabs (including epitaxial wafer plants), display fabs, and chip assembly, test and packaging (ATMP/OSAT) units. Each category has a minimum capex, a minimum prior revenue, and a requirement to own or license production-grade process technology. The applicant must be a private or public limited company; in a consortium or JV, one or more group companies can meet the criteria.

“Own or possess production grade licensed technologies for the proposed technology process” Paras 3.5.3 to 3.8.3, p.15–17

Key incentives

• ATMP/OSAT, legacy packaging Figure stated in policy

  25% of eligible capital expenditure, pari-passu

  Cap: Entry bar: Rs 1,000 Cr capex and Rs 200 Cr prior revenue

  “Legacy Packaging ... Minimum Capital Investment of ₹1000 crore ... Minimum Revenue of ₹200 crore ... Fiscal support as percentage of eligible capital expenditure 25% on Pari-passu basis” Para 3.8.3, p.17

• ATMP/OSAT, advanced packaging and substrates Figure stated in policy

  35% of eligible capital expenditure, pari-passu, for 2.5D/3D, wafer-level chip-scale packaging, heterogeneous integration and advanced substrates

  Cap: Entry bar: Rs 1,000 Cr capex and Rs 200 Cr prior revenue

  “Advanced Packaging (2.5D/3D packaging, Wafer-Level chip scale Packaging, Heterogenous integration) and Advanced Substrate ... Minimum Capital Investment of ₹1000 crore ... 35% on Pari-passu basis” Para 3.8.3, p.16–17

• Compound semiconductor, photonics, sensor (MEMS) and discrete fabs Figure stated in policy

  35% of eligible capital expenditure, pari-passu

  Cap: Entry bar: Rs 500 Cr capex, Rs 200 Cr prior revenue, 500 wafer starts per month

  “Minimum Capital Investment of ₹500 crore ... Minimum Revenue of ₹200 crore ... Fiscal support as percentage of eligible capital expenditure 35% on Pari-passu basis” Para 3.6.3, p.15

• Silicon wafer fabs Figure stated in policy

  40% of eligible capital expenditure, pari-passu

  Cap: Entry bar: Rs 20,000 Cr capex, Rs 7,500 Cr prior revenue, 300 mm wafers at 40,000 wafer starts per month

  “Minimum Capital Investment of ₹20,000 crore ... Minimum Revenue of ₹7,500 crore ... Fiscal support as percentage of eligible capital expenditure 40% on Pari-passu basis” Para 3.5.3, p.15

• Display fabs (OLED, Micro LED, LCD) Figure stated in policy

  35% of eligible capital expenditure, pari-passu

  Cap: Entry bar from Rs 1,500 Cr capex (Micro LED) to Rs 10,000 Cr (OLED Gen 6+, LCD Gen 8+)

  “Micro LED Technology ... Minimum Capital Investment of ₹1,500 crore ... 35% on Pari-passu basis” Para 3.7.3, p.16

• Advanced semiconductor R&D (Pillar 5) Case-by-case, no fixed figure

  Up to 75% of project cost (capex and opex), with the state incentive counted inside that 75%

  “Up to 75% (including State Incentive) of the Project Cost (Capex and Opex)” Para 3.9.4, p.17

• Integrated plants, modules and epitaxial wafers Figure stated in policy

  Integrated projects (fab plus packaging, or packaging plus modules) are supported pro-rata, from a separate cost break-up per component. Module lines are paid at the legacy-packaging rate, and only inside an integrated packaging application. Display-module plants are not eligible. Epitaxial wafer plants are treated as compound semiconductor fabs.

  Cap: A combined fab and ATMP application must meet the higher of the two categories’ capex and revenue thresholds

  “the incentive for module manufacturing will be the incentive applicable to legacy packaging. An application only for module manufacturing shall not be eligible under the Scheme.” Guidelines, Paras 3.4 and 5.2 to 5.5, p.5–7

• Application fee and approval clock Figure stated in policy

  Non-refundable fee of Rs 10 lakh plus GST. ISM aims to acknowledge a complete application within 45 days and finish appraisal within 6 months of acknowledgement; the Union Cabinet then approves. Neither timeline is binding, and no timeline is set for the Cabinet stage.

  “The Nodal Agency shall complete the evaluation and appraisal of the project preferably within six months from the date of issuance of the acknowledgement letter.” Guidelines, Paras 7.3, 8.3 and 8.4, p.9; Annexure-1, item 1.14, p.17

• The acknowledgement date starts the capex clock Figure stated in policy

  Spending before ISM acknowledges your application is never reimbursed. Spending after acknowledgement but before Cabinet approval counts, but at your own risk if the project is not approved.

  “A Project company, at their own risk, may choose to start the investment after the date of acknowledgement. ... Any expenditure incurred on the project before the date of acknowledgement shall not be reimbursed.” Guidelines, Paras 3.5 and 4.2, p.5–6

• What counts as eligible capital expenditure Figure stated in policy

  Building, clean rooms, plant, machinery and equipment, including used or refurbished equipment with at least 5 years of residual life. Also associated utilities (captive power, effluent treatment, compressed air, chemical and gas storage and distribution, manufacturing IT and ERP), tools, dies and moulds, and freight, insurance, erection and commissioning.

  Cap: Excluded: land and its development, temporary structures, technology transfer, interest during construction, R&D cost, and extra warranty, AMC or consumables

  “Expenditure incurred on the following shall not be considered as eligible capital expenditure/investment under the Scheme: a. Expenditure incurred on Land and its development b. Temporary structures ... c. Technology Transfer, Interest During Construction (IDC), and R&D cost” Guidelines, Paras 2.7, 4.1 and 4.6, p.2–6

• How the money is released Figure stated in policy

  Pari-passu, through a No-Lien Account at an Indian scheduled bank. You deposit your share first, then ISM releases its pro-rata share. From the second instalment on, each claim needs a progress report, an auditor-certified fixed-asset register and an expenditure certificate.

  Cap: Security: a charge on fixed assets to the Centre, ranking behind bank lenders, plus a corporate guarantee for the full support amount wherever ISM holds a second charge, which in practice covers most bank-financed projects. Support is fixed at the approved eligible capex, so overruns, including a weaker rupee on imported tools, are the promoter’s cost

  “Pro rata payments for the claim shall be released after mobilization of corresponding share and its deposition by the applicant/project company, along with other sources, in the No-Lien Account (NLA)” Guidelines, Paras 9.1, 9.4, 10.4 to 10.6 and 13.11, p.9–15

• Lock-ins after approval Figure stated in policy

  Promoters keep at least 51% of equity and voting rights through the support agreement and 3 years after the commercial operation date. No merger, demerger or restructuring in that period without ISM approval. The unit must stay in commercial production for at least 3 years.

  Cap: Refunds (excess payments, false information, closure, insolvency) carry interest at the 3-year SBI MCLR, compounded

  “Applicant/ Promoter or group shall hold at least 51% of the total equity share capital with equivalent voting rights in the Project Company at all times during the Term of the FSA, including its three years of operation after COD.” Guidelines, Paras 13.4, 13.7, 13.8 and 13.13, p.14–16

• Reporting Figure stated in policy

  A self-certified progress report every fortnight (within 5 days) and a quarterly review report (within 30 days of quarter-end) until the whole project is in commercial production, then half-yearly reports.

  “All approved applicants shall be required to furnish self-certified Fortnightly Progress Report within 5 days and self-certified Quarterly Review Reports (QRRs) within 30 days from the end of each quarter” Guidelines, Para 12.2, p.13

• State incentives stack on top Figure stated in policy

  Support from a state government or its agencies is in addition to central support, and the state can join the No-Lien Account agreement and take a pari-passu charge on assets.

  “Fiscal Support, offered by the State Governments or any of its agencies or local bodies shall be over and above the fiscal support under the Scheme.” Guidelines, Paras 9.1, 13.5 and 13.11, p.9–15

Administering authority

India Semiconductor Mission (ISM) appraises and recommends; approval for every manufacturing category is by the Union Cabinet.

Why it matters to you

Central support is lower than under Semicon 1.0, which offered 50% fiscal support. That matters twice in Assam: the state’s 40% capital subsidy is calculated as a share of the central assistance, so a 25% central rate on a legacy-packaging line shrinks the state top-up as well. For most readers the practical value of this pillar is as a demand signal: each approved OSAT or fab creates a supplier base for the Pillar 2 and ECMS categories.

Who it covers

Greenfield or brownfield units making (a) parts and materials that feed electronics sub-assemblies and bare components, such as laminate, prepreg, copper foil, separators, cathode and anode material, electrolyte, lenses, films and glass covers, or (b) capital goods used in electronics manufacturing and their sub-assemblies and components.

“Greenfield as well as brownfield investment for the target segment shall be eligible under the scheme.” Gazette notification, Para 8.1, p.11

Key incentives

• Capex incentive Figure stated in policy

  25% of eligible capital expenditure; 5 of those 25 percentage points are paid only if the employment threshold is met

  Cap: Minimum investment Rs 10 Cr · Duration: On investment made within 5 years of the application being acknowledged

  Gate: The last 5 of the 25 percentage points require meeting the cumulative incremental employment threshold in Annexure A(III)

  “Out of total capex incentive rate (25%), 5% of the capex shall be disbursed only on meeting cumulative incremental employment threshold as per Annexure A(III).” Para 6.2, p.11; Annexure A(II), p.13

• Employment threshold for the last 5% Figure stated in policy

  Indicatively 10 jobs per Rs 1 Cr invested (supply-chain parts) or 20 jobs per Rs 1 Cr (capital goods)

  “It is indicative employment per crore of investment, the actual cumulative incremental employment threshold shall be corresponding to the cumulative incremental investment.” Annexure A(III), p.15

Administering authority

MeitY, through a Project Management Agency that receives and appraises applications. An inter-ministerial Governing Council chaired by the Secretary, MeitY recommends approvals.

Why it matters to you

The lowest-threshold central manufacturing incentive in electronics: Rs 10 Cr of investment qualifies. It suits an Assam MSME making laminates, films, precision parts or production tooling for electronics assemblers. The employment condition is steep for capital goods, though. At 20 jobs per crore, a Rs 10 Cr unit needs about 200 new jobs to collect the full 25%; otherwise it receives 20%.

Who it covers

Any individual aged 18+, no income ceiling, for a genuinely new micro-enterprise (not an existing unit, and not one that already received government subsidy under another central or state scheme). A minimum VIII-standard education is required only above Rs 10 lakh project cost (manufacturing) or Rs 5 lakh (service/business). Land cost is excluded from the project cost; only one person per family may benefit.

“Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible” Scheme guidelines, Section 4.1

Key incentives

• Margin money subsidy — General category Figure stated in policy

  15% of project cost (urban) or 25% (rural)

  Cap: Beneficiary contributes 10%; balance is bank-financed. Project cost capped at Rs 50 lakh (manufacturing) or Rs 20 lakh (business/service)

  “General Category | 10% | Urban 25% Rural | Rate of Subsidy (of project cost)... The maximum cost of the project/unit admissible for Margin Money subsidy under manufacturing sector is Rs. 50.00 lakh” Scheme guidelines, Section 3.1(i)

• Margin money subsidy — Special category Figure stated in policy

  25% of project cost (urban) or 35% (rural)

  Cap: Beneficiary contributes 5%; balance is bank-financed. Same Rs 50 lakh / Rs 20 lakh project-cost caps apply · Duration: Subsidy held for a 3-year lock-in, then adjusted against the bank loan

  Gate: Special category covers SC/ST/OBC/Minorities/Women, Ex-servicemen, Physically handicapped, and applicants in NER, Hill and Border areas

  “Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc. | 05% | 25% | 35%” Scheme guidelines, Section 3.1(i)

• Second loan for upgrading an existing PMEGP/REGP/MUDRA unit Figure stated in policy

  15% margin money subsidy (20% for NER and Hill States), 10% own contribution, for all categories

  Cap: Project cost up to Rs 1 Cr (manufacturing, max subsidy Rs 15 lakh / Rs 20 lakh NER-Hill) or Rs 25 lakh (service, max subsidy Rs 3.75 lakh / Rs 5 lakh NER-Hill)

  Gate: Requires the first PMEGP/MUDRA/REGP loan to be fully repaid and its margin money already adjusted, plus a profitable, growing unit

  “All categories | 10% | 15% (20% for NER and Hill States)... The maximum cost of the project/unit admissible for Margin Money subsidy under manufacturing sector for upgradation is Rs. 1.00 Crore. Maximum subsidy would be Rs. 15.00 lakh (Rs. 20.00lakh for NER and Hill states).” Scheme guidelines, Section 3.1(ii)

Administering authority

Khadi and Village Industries Commission (KVIC), Mumbai — the national nodal agency — implementing through State KVIC Directorates, State Khadi and Village Industries Boards, District Industries Centres, and identified banks (all major public sector banks, RRBs, co-operative banks, private scheduled banks, and SIDBI).

Why it matters to you

The margin money subsidy is not paid to the applicant directly — it sits in a separate account for a 3-year lock-in and is then adjusted against the bank loan, so PMEGP functions as a subsidised-loan scheme rather than a cash grant. It is genuinely open to a first-time Assam manufacturing MSME (NER status alone puts most Assam applicants in the higher 25%/35% Special-category band), but stacking it with a state grant needs care: SISFS (see that entry) disqualifies a startup that has already drawn more than Rs 10 lakh of government support elsewhere, and PMEGP itself excludes any unit that already took a subsidy under another central or state scheme.

Who it covers

DPIIT-recognised startups incorporated no more than 2 years before applying, using technology in their core product or model, at least 51% held by Indian promoters, and with no more than Rs 10 lakh of monetary support from any other central or state scheme. Funds flow through a selected incubator, not directly from DPIIT.

“A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application” Guidelines, Para 3.1(1), p.2

Key incentives

• Proof-of-concept grant Figure stated in policy

  Up to Rs 20 lakh for proof of concept, prototype development or product trials, in milestone-based instalments

  “Up to Rs. 20 Lakhs as grant for validation of Proof of Concept, or prototype development, or product trials.” Guidelines, Para 8.1(1), p.11

• Commercialisation investment Figure stated in policy

  Up to Rs 50 lakh as convertible debentures or debt, at no more than the repo rate, unsecured, with up to 12 months’ moratorium

  Duration: Loan tenure up to 60 months

  “Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments” Guidelines, Para 8.1(2) and 8.3, p.11

Administering authority

DPIIT, through an Experts Advisory Committee that selects incubators; the incubator selects startups and disburses.

Why it matters to you

Pairs with, but is constrained by, the Assam Start-up and Innovation Policy 2025. SISFS disqualifies any startup that has already received more than Rs 10 lakh from another government scheme, so taking Assam’s Rs 25 lakh Piloting or Rs 50 lakh Scale-up grant first could close this door. Sequence matters. The seed money also cannot be used to build facilities, which limits its use for hardware.

Who it covers

New or existing micro and small enterprises (manufacturing, services or trading) borrowing from a CGTMSE member bank or lender without collateral or third-party guarantee. Medium enterprises are not covered.

“extended by Member Lending Institution(s) to a single eligible borrower in the Micro and Small Enterprises sector for credit facility (i) not exceeding ₹10 crore” Scheme document CGS-I, Para 4, p.5

Key provisions

• Collateral-free loan ceiling Figure stated in policy

  Term loans and working capital up to Rs 10 Cr from scheduled banks (Rs 2 Cr from small finance banks, RRBs and co-operative banks)

  “The cap of ₹10 crore is the maximum guarantee coverage limit (irrespective of the unit activity including Trading) per borrower” Para 4, p.5

• Guarantee cover for North East MSEs Figure stated in policy

  80% of the loan up to Rs 50 lakh; 75% above Rs 50 lakh up to Rs 10 Cr. Borrowers in RBI-identified credit-deficient districts get a further 5%

  Gate: Whether a bank actually extends a CGTMSE-covered loan is the lender's decision — the scheme does not oblige any bank to lend

  “MSEs located in North East Region, UT of Jammu & Kashmir & UT of Ladakh | 80% | 75%” Para 9, Extent of Guarantee Coverage table, p.15

• Annual guarantee fee Figure stated in policy

  From 0.37% a year (loans up to Rs 10 lakh) to 1.20% (Rs 8–10 Cr), before risk premium; usually passed on to the borrower

  “0-10 lakh 0.37 ... Above 8-10 crore 1.20” Para 8, AGF table, p.14

Administering authority

Credit Guarantee Fund Trust for Micro and Small Enterprises, set up by the Ministry of MSME and SIDBI. Borrowers apply through their bank, not to CGTMSE directly.

Why it matters to you

Not a subsidy, but often the thing that makes a first factory bankable. An Assam micro or small unit can borrow up to Rs 10 Cr without pledging land or a promoter’s house, with the guarantee fee as the cost. Loans above Rs 50 lakh must be internally rated investment grade by the lender, so a clean first year of books matters.

Who it covers

Any supplier selling goods, services or works to a central government buyer. Class-I local suppliers have at least 50% local content; Class-II have more than 20% and under 50%; at 20% or below a supplier is non-local.

“‘Class-I local supplier’ means a supplier or service provider, whose goods, services or works offered for procurement, has local content equal to or more than 50%” Para 2, p.1

Key provisions

• Tenders under Rs 200 Cr closed to non-local suppliers Figure stated in policy

  Only Class-I and Class-II local suppliers may bid, unless a global tender is specifically approved

  “with estimated value of purchases less than Rs. 200 Crore, in accordance with Rule 161(iv) of GFR, 2017, Global tender enquiry shall not be issued except with the approval of competent authority” Para 3(b), p.2

• Purchase preference for Class-I suppliers Figure stated in policy

  A Class-I supplier priced within 20% of the lowest bid can match it and win the contract (or 50% of the quantity, where the order is divisible)

  “The margin of purchase preference shall be 20%.” Paras 3A and 6, p.2–4

Administering authority

DPIIT (Public Procurement Section) issues the order; each nodal ministry, including MeitY for electronics, can set item-specific local-content rules and certify sufficient local capacity.

Why it matters to you

Money does not change hands, but the order shapes demand. For an electronics or defence supplier in Assam, reaching 50% local content moves you from competing on price alone to holding a right to match. MeitY’s 2021 guidelines for compound semiconductor, sensor fab and ATMP/OSAT units also point those units to this order for purchase preference.

Who it covers

MSMEs (manufacturing and, after the March 2026 modification, service sector too) taking a term loan for equipment or machinery, where machinery/equipment must make up at least 60% of project cost. A separate, richer track exists for exporter MSMEs meeting a 3-year export-share test.

“Minimum project cost towards Machinery / Equipment: Cost of equipment/ machinery reduced upto 60% of project cost (from earlier 75%).” PIB press release, Ministry of Finance, 21 Mar 2026

Key provisions

• Credit guarantee on plant & machinery term loans Figure stated in policy

  60% guarantee coverage by NCGTC to the lending bank

  Cap: Loans up to Rs 100 Cr · Duration: Guarantee expires after 10 years

  “The scheme provides 60% guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for credit facility upto ₹100 crore sanctioned to eligible Micro, Small and Medium Enterprises (MSMEs) under MCGS-MSME for purchase of equipment/ machinery.” PIB press release, Ministry of Finance, 21 Mar 2026

• Upfront contribution Figure stated in policy

  5% of the loan, refundable at 1 percentage point per year from year 4, subject to satisfactory loan performance

  “5% Upfront contribution made refundable, 1% each from 4th year onwards, subject to satisfactory performance of loan account.” PIB press release, Ministry of Finance, 21 Mar 2026

• Exporter track: guarantee coverage Figure stated in policy

  75% of the amount in default

  Cap: Guaranteed loan amount Rs 20 Cr; upfront contribution 2% of loan (max Rs 40 lakh), 1 point refundable in each of years 4 and 5

  Gate: Requires a profitable unit that exported at least 25% of sales turnover in each of the preceding 3 financial years, plus export-realisation conditions

  “Eligible exporters: Profitable units having exported at least 25% of their sales turnover in each of previous 3 financial years and satisfying certain export realisation conditions. Guaranteed Loan Amount: ₹20 crore... Guarantee Coverage: 75% of the amount in default.” PIB press release, Ministry of Finance, 21 Mar 2026

Administering authority

National Credit Guarantee Trustee Company Limited (NCGTC), under the Department of Financial Services, Ministry of Finance. Applicants apply through a Member Lending Institution, not to NCGTC directly.

Why it matters to you

De-risks a plant-and-machinery term loan the same way CGTMSE de-risks a smaller working-capital loan, but at a scale — up to Rs 100 Cr — that fits a Medium enterprise CGTMSE cannot reach (CGTMSE tops out at Rs 10 Cr and excludes Medium enterprises entirely). This is the credit instrument the audit flags as making a Rs 20–100 Cr Assam Medium unit bankable, exactly the bracket the site’s own investment-size overlap (see IIPA 2019’s uncertain items) puts in play.

Who it covers

Any MSME registered on the Udyam portal. Any number of units under one Udyam registration may apply, but each unit is certified and subsidised separately.

“All MSMEs registered with the UDYAM registration portal (of the MoMSME) will be eligible to participate in MSME Sustainable (ZED) Certification and avail related benefits/incentives.” Guidelines, Section 2.4

Key incentives

• Certification-cost subsidy Figure stated in policy

  80% for Micro, 60% for Small, 50% for Medium enterprises

  Cap: On a certification cost of Rs 10,000 (Bronze), Rs 40,000 (Silver) or Rs 90,000 (Gold)

  “An MSME unit will get subsidy as per the following structure, on the cost of certification: i. Micro Enterprises: 80% ii. Small Enterprises: 60% iii. Medium Enterprises: 50%” Guidelines, Section 3.4.5

• Additional subsidy: ownership or geography Figure stated in policy

  +10 percentage points

  Cap: Every Assam unit qualifies by geography alone (NER), regardless of ownership

  “There will be an additional subsidy of 10% for the MSMEs owned by Women/SC/ST Entrepreneurs OR MSMEs in NER/Himalayan/LWE/Island territories/aspirational districts.” Guidelines, Section 3.4.5

• Additional subsidy: cluster membership Figure stated in policy

  +5 percentage points

  Gate: Requires membership in a SFURTI or MSE-CDP cluster

  “In addition to above, there will be an additional subsidy of 5% for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises - Cluster Development Programme (MSE-CDP) of the Ministry.” Guidelines, Section 3.4.5

• Joining reward Figure stated in policy

  Rs 10,000, usable once toward the cost of a first certification

  Duration: Valid 1 year after taking the ZED Pledge

  “A limited-purpose joining reward of Rs. 10,000/- will be offered to each MSME once they take the ZED Pledge” Guidelines, Section 3.4.5(c)

• Handholding and consultancy support Figure stated in policy

  Up to Rs 5 lakh per MSME, of which up to Rs 2 lakh is earmarked for handholding specifically

  “A provision of up to Rs. 5 Lakhs (per MSME) has been made available for handholding and consultancy support for MSMEs under ZED Certification... Out of this, an amount upto Rs. 2 Lakhs to be utilized for handholding support” Guidelines, Section 3.5

Administering authority

Ministry of MSME / Office of the Development Commissioner MSME, with Quality Council of India (QCI) as the certifying and assessment body, and MSME-DIs, Technology Centres, Testing Centres and NIMSME as supporting implementing organisations.

Why it matters to you

For a Micro unit in Assam, the geography top-up alone takes the subsidy to 90% of certification cost (80% + 10% NER), and the Rs 10,000 joining reward can zero out a Bronze certification entirely. This is a genuinely low-friction credential for a supplier trying to clear an anchor buyer’s vendor-qualification bar — distinct from, and possibly stackable with, the smaller ZED-inclusive certification reimbursement already inside IIPA 2019 (Section 14.4).

Who it covers

Open to all new Semiconductor Manufacturing units. A separate, richer incentive track requires the project to already be qualified under a central India Semiconductor Mission (ISM) scheme.

“All new units falling under ‘Semiconductor Manufacturing’ are entitled for benefits under this policy unless specifically stated otherwise in the provisions of the policy.” Section 4, p.9

Key incentives

• Capital subsidy Figure stated in policy

  Additional 40% of the capex assistance the Government of India already approved for the project

  Cap: Tied to fixed capital investment as defined by cross-referenced MeitY guidelines · Duration: Paid in 5 tranches (20% each) across construction and early production years

  Gate: Reachable only after the project has cleared a national India Semiconductor Mission (ISM) scheme approval

  “an additional 40% (Forty Percent) of the Capex assistance given by the Government of India” Section 5.1, p.11

• Stamp duty exemption Figure stated in policy

  100% exemption on lease/sale of land or built-up space allotted by Government, AIDC, AIIDC, or designated development authorities

  “100% exemption of stamp duty on lease/sale agreement of land or built-up space allotted by Government / AIDC / AIIDC / designated development authorities” Section 5.3, p.11

• Power tariff incentive Figure stated in policy

  Up to 50% of power tariff, paid annually

  Duration: 10 years from the Commercial Operations Date

  “incentives in power tariff up to 50% of power tariff... disbursed annually” Section 5.4, p.11

• Water supply Figure stated in policy

  Fixed rate of Rs 5.00 per cubic metre; a further subsidy up to 100% of tariff is available case-by-case

  Duration: Fixed rate guaranteed for the first 10 years of operation

  “provide water in the required quantities at the rate of INR 5.00 / cubic meter” Section 5.5, p.11

• SGST reimbursement Case-by-case, no fixed figure

  No percentage or rupee cap is stated anywhere in the policy — the state reserves the right to set this case-by-case

  Duration: Up to a maximum of 15 years

  “reserves the right to provide SGST Reimbursement on a case-to-case basis” Section 5.6, p.11

• Payroll assistance Figure stated in policy

  20% of net wages for local employees

  Duration: Not stated in the policy text

  “Payroll Assistance of 20% of Net wages for local employees” Section 5.7, p.12

Administering authority

An Empowered Committee (Minister IC&PE as Chairman, Chief Secretary as Vice-Chairman, Sr. Most Secretary Industries & Commerce as Member Secretary, plus Finance/Home/Power/Skill/Environment/IT/Revenue/PWD/Labour secretaries) scrutinises applications, grants Project Approval and Mega Project Status, and recommends incentives for Cabinet approval.

Why it matters to you

The marquee 40% state capex top-up is only reachable after a project has already cleared a national India Semiconductor Mission scheme bar — it is not automatically available to a general electronics-manufacturing MSME. The broader incentives (stamp duty, power tariff, payroll) apply more generally to any unit in semiconductor manufacturing, but the two most consequential open figures — the SGST reimbursement rate and the payroll-subsidy duration — are simply not fixed in the policy text.

Who it covers

New units (commenced commercial production during the policy’s validity) registered as a company, partnership, proprietorship, trust, co-operative or FPO/FPC, or set up by the State Government — Central PSUs are excluded. Must clear an 18-item negative list (tobacco, tea, saw milling, petroleum-refinery products and more) and meet an Assam-employment quota of 80% managerial / 90% non-managerial staff. Micro/Small/Medium enterprises are defined by reference to the current MSME classification; this policy separately and fixedly defines a "Large unit" as plant & machinery investment above Rs 10 Cr.

“Units will have to employ minimum of 80% people of Assam in the Managerial Cadre and minimum 90% people of Assam in Non Managerial Cadre.” Section 15(c), p.7

Key incentives

• SGST reimbursement Figure stated in policy

  100% of SGST paid, for 15 years — capped at 150–250% of Fixed Capital Investment depending on enterprise size and whether the unit is inside a notified industrial park

  Cap: Micro: 200% FCI (250% in parks) · Small: 150% FCI (180% in parks) · Medium & Large: 150% FCI · Mega (customised): up to 200% FCI · Duration: 15 years

  “Reimbursement of 100% SGST paid through debit in electronic cash ledger account... Micro Enterprises: 15 (Fifteen) years subject to maximum of 200% of Fixed Capital Investment.” Section 13.1, p.5–6

• Power subsidy Figure stated in policy

  Rs 2.00 per unit of power consumed

  Cap: Rs 50 lakh per annum; not exceeding 100% of investment in plant & machinery; APDCL-connected units only · Duration: 5 years from commercial production

  “reimbursement of power subsidy @ Rs. 2.00 per unit consumed for a period of 5(five) years from the date of commercial production subject to a maximum Rs. 50 (fifty) lakhs Per Annum” Section 14.1, p.6

• Generating-set subsidy Figure stated in policy

  50% of the cost of a generating set

  Cap: Rs 20 lakh, on cost, taxes and transportation only

  “Subsidy on Generating set @ 50% of the cost subject to a limit of Rs. 20 lakhs on cost of generating set, taxes and transportation only.” Section 14.2, p.6

• Stamp duty reimbursement Figure stated in policy

  100% reimbursement

  Cap: Rs 25 lakh; not available for agricultural land or land used in manufacturing in urban areas

  “100% Stamp duty shall be reimbursed, subject to a monetary ceiling of Rs.25 lakh (Twenty five lakh).” Section 14.3, p.6

• Technology transfer and quality certification (incl. ZED) Figure stated in policy

  75% of the fee for BIS/ISO/FSSAI/AGMARK/HALLMARK/SILK MARK/ZED certification, or for technology transfer from a recognised institution

  Cap: Rs 10 lakh per unit

  “will be provided subsidy up to the extent of 75%, subject to a ceiling of Rs.10.00 lakh per unit.” Section 14.4, p.6–7

• Working capital interest subsidy Figure stated in policy

  2% per annum on the outstanding working capital loan

  Cap: Rs 50 lakh; not exceeding 100% of investment in plant & machinery · Duration: 5 years

  “2% on the outstanding working capital loan for five years subject to a ceiling of Rs. 50 lakh (Fifty lakh) and not exceeding 100% of investment in plant and machinery.” Section 14.5, p.7

• MSME stock-exchange listing subsidy Figure stated in policy

  30% of public-issue expenses

  Cap: Rs 5 lakh

  “Govt. will provide subsidy @ 30% of the cost of Public Issue expenses, subject to maximum of Rs. 5 lakh.” Section 14.6, p.7

• Environmental compliance (ETP) subsidy Figure stated in policy

  50% of capital cost of an effluent treatment plant

  Cap: Rs 25 lakh per unit; not available to hotels

  “Subsidy @ 50% on capital cost for setting up of effluent treatment plant subject to max of Rs. 25 lakh per unit.” Section 14.7, p.7

• Employment generation incentive Figure stated in policy

  Rs 10,000 one-time payment per local youth employed

  “state Government will provide incentive of Rs.10000 (ten thousand) to the employer against each local youth employed by the unit. This shall be an one time incentive to the industries.” Section 14.10(a), p.7

• Aggregate cap on "Other Incentives" Figure stated in policy

  Power, generating-set, stamp duty, technology transfer, working capital, listing, ETP, infrastructure-developer and employment lines combined cannot exceed 100% of Fixed Capital Investment — SGST reimbursement sits outside this cap

  “the aggregate/overall incentives from all these component shall not exceeds 100% of the fixed capital investment. The overall ceiling does not include subsidy accruing to the unit from the SGST reimbursement.” Section 14, p.6

Administering authority

A District Level Committee, chaired by the Deputy Commissioner, issues the Eligibility Certificate and approves subsidy for Micro units (plant & machinery investment Rs 25 lakh or below); a State Level Committee, chaired by the Senior-most Secretary, Industries & Commerce Department, does the same for every larger unit.

Why it matters to you

This is the base state fiscal-incentive package that every other Assam industrial policy on this page layers on top of. The SGST reimbursement alone — 15 years, scaled to 150–250% of fixed capital investment by enterprise size — is normally the single largest incentive line an Assam MSME can claim, and it sits outside the 100%-of-FCI cap that bundles every other "Other Incentive" here. An applicant must clear the negative list (Annexure I) and the 80%/90% Assam-employment quota, and must file for an Eligibility Certificate within 6 months of starting commercial production — miss that window and none of these incentives can be claimed.

Who it covers

Sector-agnostic Mega Project track: minimum Rs 100 crore investment and 200 permanent jobs (the jobs figure can be relaxed by the Empowered Committee for industries of a special nature).

“Mega Project Units (Minimum Investment of Rs 100 Crore and 200 numbers of permanent employment) may seek for customized incentives for implementation of their project(s).” Clause 14.9.1, Gazette p.2118

Key incentives

• Customised Mega Project package Case-by-case, no fixed figure

  A bespoke package across five heads — capital investment/production-linked subsidy, power tariff, land, stamp duty, and employment/payroll — every figure negotiated by the Empowered Committee, none fixed in the clause

  “Capital Investment/ Production Linked Subsidy; Subsidy on Power Tariff; Subsidy on Land; Stamp Duty Reimbursement; Employment/Payroll Subsidy” Clause 14.9.1, Gazette p.2118

Administering authority

A separately-constituted Empowered Committee (Minister IC&PE as Chairman; Sr. Most Secretary IC&PE as Member Secretary; Finance, Mines & Minerals, Revenue & DM, Power, Tourism secretaries; Commissioner of Taxes) evaluates and recommends a customised incentive package to the State Cabinet for approval.

Why it matters to you

The Rs 100 Cr / 200-job bar puts this track out of reach for most MSMEs, but it matters to any client whose project could scale past that line — the Mega Project track can potentially be pursued alongside the sector-specific Electronics Policy’s ISM-linked incentives, since this amendment is sector-agnostic and simply adds a general "bespoke package" layer on top of Assam’s base industrial policy.

Who it covers

Most entity types (proprietorships, partnerships, LLPs, private/public limited companies, trusts, NGOs, FPOs) qualify, provided at least 50% of the project cost is bank/FI-financed. Central government agencies and PSUs are excluded. Minimum investment/area thresholds scale by infrastructure type, from Rs 1 crore (Primary Processing Centre) to Rs 75 crore (Multi-Modal Logistics Park).

“Incentives under the policy shall be applicable to the Proprietorial firm, Partnership firm, Cooperative Societies, Limited liability Companies (LLP), Private Limited Company, Limited Company, Trust, Non-Government Organization (NGO), FPO/FPC as well as such infrastructure created by State Government/SPSUs.” Section 5, gazette p.8766

Key incentives

• Container Freight Station / Inland Container Depot capital subsidy Figure stated in policy

  30% of fixed capital investment

  Cap: Rs 10 Crore · Duration: One-time; min. investment threshold Rs 30 Crore, min. 10 acres

  “Financial assistance @30% of the fixed capital investment up to a maximum of INR 10 Crore” Section 6, p.18

• Warehouse capital subsidy Figure stated in policy

  30% of fixed capital investment

  Cap: Rs 7.50 Crore · Duration: Capped at 33 warehouses for the whole policy period

  “Financial assistance @30% of the fixed capital investment up to a maximum of INR 7.50 Crore” Section 6, p.18

• Multi-Modal Logistics Park capital subsidy Figure stated in policy

  25% of fixed capital investment

  Cap: Rs 20 Crore · Duration: Capped at 3 MMLPs for the whole policy period; min. investment Rs 75 Crore, min. 75 acres

  “Financial assistance @ 25% of the fixed capital investment up to a maximum of INR 20 Crore” Section 6, p.17

• Stamp duty Figure stated in policy

  100% reimbursement

  “Reimbursement of 100% of Stamp Duty” Section 6, p.19

• Logistics-sector start-up incentive Figure stated in policy

  Up to Rs 50 lakh per unit (Rs 10 lakh at proof-of-concept, Rs 40 lakh for scale-up)

  Cap: 10 start-ups for the whole policy period

  “10 start-ups will be provided fiscal incentives with a ceiling of INR 50 Lakhs per unit” Section 6, p.19

Administering authority

Department of Industries, Commerce and Public Enterprises, via a dedicated Logistics Division and a State Logistics Empowered Committee (SLEC) chaired by the Senior-most Secretary, DoIC&PE. Disbursement runs through the State Single Window Agency.

Why it matters to you

Directly relevant to inbound/outbound logistics for an electronics or semiconductor-adjacent manufacturer — bonded warehousing or a CFS/ICD for imported components, buffer-stock warehouse capacity, and 100% stamp duty reimbursement on any logistics land transaction. It does not cover the manufacturing plant itself (that sits under the Industrial Policy); it is most useful for an allied logistics subsidiary or a 3PL partner the firm works with.

Who it covers

Open to all registered companies, firms, societies, government entities, DISCOM consumers, and individuals setting up solar power projects for sale or captive use. A dedicated "Industry-with-storage" rooftop target (100 MW) and a Captive Solar Power Plant route (minimum above 1 MW) are the two industrial-facing mechanisms.

“All registered companies, firms, societies, Government entities, consumers of DISCOM and individuals will be eligible for setting up of Solar Power Projects within the State for sale of electricity or captive use, in accordance with the Electricity Act – 2003.” Section 8, gazette p.10214

Key incentives

• Electricity duty exemption Figure stated in policy

  100% exemption from electricity duty and cess on captive-use consumption

  Duration: 5 years from commissioning

  “will be exempted from payment of electricity duty and cess for a period of 5 years from the date of commissioning of the project” Section 16.4, gazette p.10235

• Wheeling and transmission charge discount Window closed 31 Mar 2026

  50% of normal transmission and wheeling charges

  Duration: 3 years from commissioning; applies to projects commissioned up to March 2026

  “@50% of normal transmission and wheeling charges for a period of 3 years from the date of commissioning of the project” Section 16.2(D)(i), gazette p.10234

• Environmental clearance and Pollution Control NOC exemption Figure stated in policy

  Solar PV projects are exempted from Environmental Clearance and from PCB Assam NOC/Consent for establishment and operation

  “Solar PV projects shall be exempted from obtaining Environmental clearance.” Section 16.11–16.12, gazette p.10236

• Captive Solar Power Plant surplus sale Figure stated in policy

  Surplus energy may be sold to DISCOM at 75% of the APPC rate

  Duration: Minimum captive capacity must be above 1 MW; no stated maximum

  “The surplus energy may be sold either to DISCOM @75% of the APPC rate.” Section 10.6.5(i), gazette p.10227

• Rooftop solar state subsidy Ambiguous in source text

  Rs 1,000 per kW

  Cap: Rs 3,000 per consumer, first 30 MW of applications, first-come-first-served

  Gate: Textually scoped to residential consumers, not the 'Industry-with-storage' category — likely does not apply to an industrial rooftop installation

  “State Government will provide subsidy of Rs. 1000 per kW to a maximum limit of subsidy Rs. 3000/- per consumer on first come first basis for the first 30 MW applications submitted online to APDCL.” Section 16.6, gazette p.10235

Administering authority

Power (Electricity) Department is the nodal department; APDCL is the nodal agency for registration, power evacuation, open access facilitation, and subsidy processing. AERC regulates tariffs and disputes; SLDC Assam handles intra-state open access clearance.

Why it matters to you

Directly relevant to securing reliable, cost-managed backup or captive power — a core site-selection concern for cleanroom or precision manufacturing. The Captive Solar Power Plant route, combined with the 5-year electricity-duty exemption and the wheeling/transmission discount, lowers the effective cost of a large rooftop-plus-storage installation. The state’s own target table carves out a dedicated 100 MW "Industry-with-storage" category, signalling it specifically wants industrial rooftop-with-battery adoption.

Who it covers

Applies to all land held by AIDC, AIIDC, and ASIDC. Any entrepreneur may apply through the Ease of Doing Business portal; "Obnoxious and Red Category" industries are barred from allotment. No MSME-specific or semiconductor-specific eligibility category exists in this policy.

“An entrepreneur desirous of getting plots in various industrial estates of the Corporations should apply through Ease of Doing Business portal of Government of Assam.” Section 4, p.2 of 12

Key provisions

• Lease term Figure stated in policy

  60 years initially, renewable for a further 30 years

  Cap: Renewal premium: 25% of prevailing Land Development Charge at time of renewal

  “The lease will be granted for a period of 60 (sixty) years initially from the date of issue of allotment letter which shall be renewable for a further period of another 30 (thirty) years on payment of lease premium at the rate of 25% of the prevailing Land Development Charge (LDC) at the time of renewal.” Section 11, p.5 of 12

• Land Development Charge payment schedule Figure stated in policy

  10% down payment at application; balance 90% within 3 months of in-principle approval

  “Down payment shall be 10% of the total development charge at the time of submission of application... The balance 90% shall be paid within 3 (three) months from the date of issue of in-principal approval.” Section 5, p.3 of 12

• Construction and production deadline Figure stated in policy

  Construction must start within 6 months of possession; production must start within 2 years, extendable to 3

  Duration: Mega Projects get 3 years, extendable to 4

  “The construction of factories shall commence within the period of 6 (six) months and... production started within the period of 2 (two) years from the date of handing over possession of land and extendable upto 3 (three) years.” Section 26, p.10 of 12

• Development charge concession by plot size Figure stated in policy

  Up to 15% concession on the balance area for the largest plot category (over 1,00,000 sqm)

  “Category IV (over 1,00,000 sqm): nil / 5% / 10% / 15% concession on balance area” p.3–4 of 12

• Default interest Figure stated in policy

  18% per annum on defaulted amounts

  “An interest @18% per annum shall be charged on the defaulted amount.” Section 30, p.11 of 12

Administering authority

Industries and Commerce Department, Government of Assam. Land itself is administered by AIDC, AIIDC, or ASIDC, each through a Land Allotment Committee and a Development & Maintenance Coordination Committee.

Why it matters to you

This is the primary rulebook a manufacturer faces when applying for a plot in any AIDC/AIIDC/ASIDC-developed industrial estate in Assam. It fixes the numbers that drive project economics and risk before capital is committed: the 60+30-year lease structure, the 10%/90% payment schedule, the 6-month-to-construction / 2-year-to-production deadline, and the 18% default interest.

Who it covers

Amends the base 2021 Land Management Policy — same universe of applicants (AIDC/AIIDC/ASIDC land), not a standalone eligibility regime.

“In partial modification of this Department’s Notification No.MI.40/2017/156 dated 28.6.2021; certain amendments have been made in the Assam Industrial Land Management Policy, 2021.” Notification, p.1

Key provisions

• Buildable footprint relaxation Figure stated in policy

  Maximum construction area raised from 50% to 60% of the allotted plot; mandatory greenery reserve cut from 50% to 5%

  “The maximum permissible area for construction of Factory/Industrial Shed/Warehouse shall not exceed 60% of the total allotted area... The Allottee/Lessee must keep minimum 5% of the total area for Greenery.” Sl. No. 29, Annexure-I, p.4

• New Industrial Shed leasing track Figure stated in policy

  A lower-capex alternative to a full plot: upfront payment equal to 11 months’ lease rent, 30-year lease renewable for another 30 years

  Cap: Processing fee capped at Rs 10,000 + taxes

  “equivalent to monthly lease rent of 11 (eleven) months for the Industrial Shed to be paid within 3 (Three) months from the issue of In-Principle Approval Letter.” Sl. No. 35, Annexure-I, p.4

• Transfer of plots below 51% shareholding Figure stated in policy

  Now permitted (base policy said "not allowed"), subject to 5 years in commercial production and clearing all dues

  “allottee must have been in commercial production for at least 5 years from first commercial production, or 3 years from the date of commercial production of the last Corporation-approved product.” Sl. No. 23, Annexure-I, p.3

• In-principle approval extension Figure stated in policy

  A new 3-month extension is available, at a cost

  Cap: 12% per annum compound interest on the balance Land Development Charge

  “may be extended on special cases up to a period of another 3 (three) months subject to the compound interest payable @ 12% per annum on balance Land Development Charge.” Sl. No. 8, Annexure-I, p.2

Administering authority

Same as the base policy, now under the renamed Industries, Commerce & Public Enterprise Department.

Why it matters to you

Three changes matter most for an MSME evaluating land near an industrial estate: the 60%/5% buildable-footprint relaxation (more usable floor area per plot), the new Industrial Shed leasing track (a lower-capex entry point than a full plot, useful for smaller electronics-manufacturing suppliers), and the 12%-per-annum cost of any extension on the in-principle approval window.

Who it covers

DPIIT-recognised startups qualify automatically. Otherwise: incorporated under 7 years (10 for biotech), annual turnover under Rs 50 crore, registered in Assam or with 50%+ of qualified workforce from Assam, and not a spin-off of an existing family business. Incentives require a MASI (My Assam Start-up Id) on top of meeting these criteria. Semiconductor/electronics manufacturing is not on the policy’s 5-sector Priority list (AgriTech, IT/ITES/AI, TravelTech, FoodTech, GreenTech).

“The date of the entity’s incorporation / registration is not prior to seven years... Its annual turnover does not exceed INR 50 crores, for any preceding financial year... It is registered in Assam or employs at least 50% of its total qualified workforce from Assam.” Section 1.7, p.4–5 of 14

Key incentives

• Idea2POC grant Figure stated in policy

  One-time, up to Rs 10 lakh

  “Startups with MASI are entitled to a one-time Grant-in-Aid up to INR 10 Lakhs to develop their ideas to a proof-of concept stage.” Section 3.1.1, p.11

• Piloting grant Figure stated in policy

  Up to Rs 25 lakh

  “Startups with MASI shall be eligible for a grant up to Rs. 25,00,000 for Piloting.” Section 3.1.2, p.11–12

• Scale-up grant Figure stated in policy

  Up to Rs 50 lakh, for raw material, marketing, and other scaling costs

  “Startups with MASI are entitled to scale up grant up to Rs. 50,00,000.” Section 3.1.3, p.12

• Patent filing reimbursement Figure stated in policy

  100% of actual filing cost

  Cap: Rs 1 lakh domestic patent; Rs 5 lakh international patent · Duration: Payable only after the patent is granted

  “reimbursement up to 100% of the actual costs... for patent filing with a maximum limit of INR 1 lakh for filing a domestic patent and up to INR 5 lakh for filing an international patent.” Section 3.1.4, p.12

• GST reimbursement Figure stated in policy

  State GST paid on sales

  Cap: Rs 5 lakh per startup per year · Duration: 3 years

  “GST Reimbursement... 3 years, max INR 5 lakh/startup/year” Section 3.1.6, p.12

• Lease rental reimbursement Figure stated in policy

  50% of lease rent

  Cap: Rs 5 lakh · Duration: Up to 3 years

  “Lease Rental Reimbursement... 50%, max 3 years, ceiling INR 5 lakhs” Section 3.1.7, p.12

Administering authority

AIIDC (Assam Industrial Infrastructure Development Corporation) is the designated Nodal Agency. A 20-member High Level Committee approves fiscal incentives; a 13-member Policy Implementation Committee recommends incentives and issues the MASI.

Why it matters to you

Gives genuine early-stage runway to an Assam-based electronics or semiconductor-adjacent startup through the MASI-gated grant stack (Idea2POC, piloting, scale-up, patent, GST, lease reimbursements) — but since semiconductor/electronics manufacturing is not a listed Priority Sector, such a startup competes in the general applicant pool rather than the 10% Priority Sector reservation. This policy offers nothing to an established MSME or mid-size manufacturer past the 7-year/Rs 50 crore turnover ceiling.

Who it covers

No Definitions or Eligibility section exists in this document. Sector scope is described narratively — aircraft manufacturing, defence equipment production, avionics, MRO services, simulation, R&D, small arms, ammunition, aerospace systems, UAVs. "Anchor Unit," "MSME," "DOSU" and "Large Private Company" are all used without ever being defined or distinguished by an investment threshold, except for the MRO capital-subsidy tiers and a Rs 500 Crore+ "Customized Incentives" tier.

“key sectors such as aircraft manufacturing, Defence equipment production, avionics, MRO services, simulation, and R&D.” Section 1 & 3, p.2–3 of 7

Key incentives

• Defence startup seed grant Figure stated in policy

  Up to Rs 25 lakh, phased, via a Ministry of Defence IDEX collaboration

  “offering up to ₹25,00,000 (Rupees Twenty-Five Lakh Only) in phased funding to recognized and eligible Defence startups.” Section 5.1.1.1, p.4

• Capital subsidy (Anchor Units and MSMEs) Figure stated in policy

  30% of capital investment on plant and machinery

  Duration: Disbursed equally over 3 years

  “Capital Subsidy (Plant & Machinery, Anchor Units & MSMEs)... 30% of capital investment, disbursed equally over 3 years.” Section 5.1.2.1, p.4

• SGST reimbursement Figure stated in policy

  100% reimbursement

  Cap: 150% of fixed capital investment · Duration: 10 years

  “SGST Reimbursement... 100%, cap 150% of fixed capital investment over 10 years.” Section 5.1.2.7, p.5

• Power tariff and electricity duty relief Ambiguous in source text

  Re 1 per unit power tariff incentive from DISCOM, plus a full electricity duty waiver

  Duration: No duration stated for either — an apparent gap versus the parallel MRO power incentive, which is explicitly capped at 5 years

  “Power Tariff Incentive... Re. 1/unit from DISCOM; Electricity Duty Waiver... 100% waiver.” Section 5.1.2.4, p.5

• Land subsidy Figure stated in policy

  50% discount on land for defence industries

  “Land Subsidy... 50% discount on land for Defence Industries.” Section 5.1.2.10, p.5

• MRO capital investment subsidy Figure stated in policy

  15% up to Rs 500 Cr investment; 20% for Rs 500 Cr–1,000 Cr; 25% above Rs 1,000 Cr

  Cap: Maximum payout Rs 500 Crore · Duration: 5 equal instalments starting the financial year after commercial operations begin

  “15% up to ₹500 crore investment; 20% for ₹500cr–₹1,000cr; 25% above ₹1,000cr (subject to max ₹500 crore payout).” Section 5.1.3.1, p.6

Administering authority

Interpretation and rights rest with the Industries, Commerce & Public Enterprise Department. An "Empowered Committee" with State Cabinet approval handles additional case-by-case subsidies for projects of Rs 500 Crore or more, though its composition is not given. No single Nodal Agency is explicitly designated — unlike the Startup Policy’s AIIDC.

Why it matters to you

More directly applicable to an established MSME or mid-size manufacturer than the Startup Policy — the capital subsidy, SGST reimbursement, power relief, and land discount apply without any age or turnover cap. But eligibility turns entirely on whether a given electronics/semiconductor manufacturing line counts as "aerospace and defence manufacturing" under this policy’s narrative sector description; there is no product-code list or explicit test for general-purpose semiconductor/electronics makers not exclusively serving defence end-use, so this must be confirmed with the Department before relying on it.