Section 4 in Incentives to Industries in Bihar, 1986
4. Concessions and Subsidies.
(1)Feasibility Reports available in or prepared by the Industries Department will be supplied free of cost. Generally no subsidy will be admissible for the preparation of such project reports/feasibility reports as are available in the department, but in special cases where it is felt that in spite of the availability of such reports, for a particular industry, it is essential to get a special report prepared and in all other cases where no such report is available in the department, subsidy will be admissible on the following scale:-(i)The cost of the preparation of reports in respect of Small-Scale Industries will be reimbursed subject to a limit of 1 per cent of the fixed capital investment or Rs. 20,000 whichever is less, The limit of Rs. 20,000 will not apply in category (A) districts as also in respect of units set up wholly by Techno-entrepreneurs/diploma holders in any technical branch or in Business Management/Scheduled Caste/Scheduled Tribe entrepreneurs and entrepreneurs of the first generation in any part of the State.(ii)For the projects with fixed capital investment of less than Rupees one crore, the cost of the preparation of the report would be reimbursed subject to a maximum of one per cent of the fixed capital investment or Rs. 50,000 whichever is less.(iii)For the projects with fixed capital investment of more than rupees one crore, the reimbursible amount would be limited to half per cent of the fixed capital investment subject to a maximum of Rs. 3 lakhs.(iv)75 per cent of reimbursable amount would be paid after the term loan is sanctioned by the Financial Institution and 25 percent after the project is set up.(v)If after disbursement of subsidy, the entrepreneur does not implement the scheme, necessary legal steps will be taken for recovery of the disbursed amount along with interest at the rate of 12 per cent.(vi)Entrepreneurs availing of this facility will have to execute an agreement at the time of filing application for grant of subsidy.(2)Subsidy on technical know-how fee.-A subsidy at the rate of 75 per cent of the lump-sum know-how fee charged by the National Research and Development Corporation and National Research Laboratories and Organisations recognised by the Government imparting technical know-how, will be available to small industrial units subject to a maximum of Rs. 30,000.In case of industries set-up in 'A' category districts as also in respect of units set-up wholly by graduate entrepreneurs, diploma holders in Business Management, Scheduled Castes/Scheduled Tribes and entrepreneurs of the first generation in any part of the State, 90 per cent of the lump-sum know-how fee subject to a maximum of Rs. 40,000 will be allowed as subsidy.The reimbursement of subsidy will be made on sanction of loan.
