Amendment in Notification No.10(3)/2007-DBA-II/NER dated the 27th July, 2007 titled ‘Central Capital Investment Subsidy Scheme, 2007 - No. 10(3)/2007-DBA-II/NER - Indian Law

MINISTRY OF COMMERCE AND INDUSTRY (Department of Industrial Policy and Promotion) NOTIFICATION New Delhi, the 21st September, 2007 No. 10(3)/2007-DBA-II/NER. The Central Government hereby notifies the following Addenda in the Government of India Notification No.10(3)/2007-DBA-II/NER dated the 27th July, 2007 titled Central Capital Investment Subsidy Scheme, 2007 . 2. Under para 4 titled Definitions , sub-para (g) shall be inserted as under: (g) For the purpose of this Scheme, all units falling under Service Sectors, Bio-technology and Power Generation Industries mentioned in para 3 I, II and III will be treated as industrial units . Since these units are not engaged in any manufacturing activity, the date of their being operational/functional will be treated as the date of commencement of commercial production for the purpose of their eligibility for benefits/incentives under this Scheme. 3. Under para 4 titled Definitions , sub-para (h) shall be inserted as under: (h) For the purpose of this Scheme in respect of Service Sector, Bio-technology Industry and Power Generating Industries referred to in para 3 I, II and III, the components / items as indicated below against each sector will be taken into account for determining the eligible amount of subsidy, if any, under this Scheme : I. SERVICE SECTORS (i ) Hotels (Not below Two Star category): The cost of construction of building (excluding land) and all the items, except consumables and disposables, which are basic to the running of a hotel. (ii) Adventure and leisure sports including ropeways: The entire cost of items/components (excluding land) essential for commissioning the project. (iii) Nursing Homes (with a minimum capacity of 25 beds): The cost of construction of building (excluding land) and other equipments relating to emergency services, general surgery, maternity facilities, pathology, radiology, E.C.G., ambulance, except consumables and disposables. (iv) Oldage homes: The cost of construction of building (excluding land) and other equipments for medical care like oxygen cylinders, suction apparatus, wheel chairs, equipments for entertainment like television, video players, computers with internet connections, books, sport-activity items like tennis, table tennis, billiards, card tables etc. (v) Vocational Training Institutes for : - hotel management : - catering and foodcrafts: - entrepreneurship development: - nursing and paramedical: - civil aviation related training: - fashion: - design: - industrial training For all these Vocational Training Institutes, the cost of construction of building (excluding land)all instruments, office machines and such other electromechanical or electronic appliances/equipments which are directly related to the service rendered including class room equipments, machine room equipments, laboratory equipments and essential furniture and fixtures but excluding consumables disposable items/components, will be taken in account. II. BIOTECHNOLOGY INDUSTRY: Equipment, accessories, spares essential for carrying out biotechnical process (s) at laboratory, pilot or commercial scale and the civil infrastructure necessary to adequately have the same shall collectively be defined as Plant Machinery (except the cost of land). It, however, does not include the solvents, chemicals, reagents and other consumables and disposables, required for biotechnology process (s). III. POWER GENERATING INDUSTRIES: In calculating the value of generating plant and machinery of a power station, the cost of plant and machinery as erected at site and required for plant operation will be taken into account which will include the cost of main plant, any building associated systems, auxiliary equipment, tools and initial spares but excluding the cost of land. (a) The amount invested in step-up transformer, switch-gear, switch yard, cables or other appurtenant equipment, if any, will be taken into account but does not include any sub-station. (b) The amount invested in ash disposal system, railway siding at site or merry-go-round system for transport of raw material/fuel or the carrier to the extent they are actually utilized for transport of ash or raw material/fuel or other appurtenant equipment if any, will be taken into account where electricity is generated by a thermal power generation unit. (c) The amount invested in dam reservoir regulating system (hoists and gates etc) head and tail water conductor system or EOT crane or other appurtenant equipment if any, will be taken into account where electricity is generated by using water power in a power generating unit. (d) Working capital including cost of raw material/fuel and other consumables will be excluded for computing the value of plant and machinery. [Only essential items in the Service Sector, Bio-technology Industry and Power Generating Industries would be admissible for determining the eligible amount of subsidy] (NOTE: (1) All transactions in respect of the cost of the project must be through cheque/demand draft. (2) All expenses/cost of the project submitted by the unit must be certified by a registered Chartered Accountant. (3) The building plan and the cost of construction of building must be certified by a registered Architect. (4) The cost of construction of the building should be relatable to the CPWD rates/norms as prescribed from time to time. (5) The building should not be in violation of the prescribed norms/guidelines by the concerned authority. (6) If the structure of a particular unit is carved out of a building already existing, only that structure will be taken into account for the purpose of determining the quantum of subsidy. In such cases, the cost of building will not be taken into account. However, expenditure incurred only on the required renovation/conversion of such structure will be taken into account. (7) Minimum standards prescribed by the concerned authorities should be strictly adhered to for setting up of the units. (8) All the units under service sectors, bio-technology and power generation must be registered under the relevant Act/Rules etc. of the State concern e.g. Factory Act, Shop and Establishment Act etc.) and will be governed by the relevant guidelines in force in the Centre/ States. (9) Before submission of the claims to SLC, NEDFi shall scrutinize the details of the cost of the project to facilitate consideration of the project in SLC meetings. If necessary, NEDFi can call for additional documents/evidence in support of the details of expenses. (10) The subsidy claims will be considered by SLC only after the unit has become operational/functional. A certificate of the unit having become functional/operational must be accompanied with the subsidy claims. The State Government will undertake physical verification of the unit before considering the claims. (11) In case there is a dispute about an item/ component of the project being essential , the matter would be referred to the Department of Industrial Policy and Promotion who will decide the matter in consultation with the concerned Central Ministry/Department and such decision will be final. 4. The footnote under Para 6(a) of the Notification dated 27th July, 2007, shall stand deleted. (N.N. Prasad) Joint Secretary to the Government of India