Section 5 in Incentives to Industries in Bihar, 1986
5. Capital Investment Subsidy.
- Some districts of this State have been categorised as 'A', 'B' and 'C' backward districts by the Government of India vide their notification issued on 27th April, 1983. In these districts, Central Capital Investment subsidy is admissible to the industrial units. In the remaining districts, as also in category 'C' districts, State Capital Investment subsidy is admissible.The scale of Central/State Capital Investment subsidy is as follows:-(a)Category 'A' (No Industry) Districts (Central Capital Subsidy).-Linder this category are the districts of Nalanda, Aurangabad, Bhojpur, Khagaria, Purnea, Saharsa and Madhepura. For these districts, Central Capital Investment subsidy at the rate of 25 per cent subject to a maximum of Rs. 25 lakhs is admissible to an industrial unit on fixed capital investment made on or after 1st April 1983. Investment made prior to 1st April, 1983, will not qualify for subsidy at the above rate. However, subsidy at the rate of 15 per cent, subject to a maximum of Rs. 15 lakhs, will be available on the fixed capital investment made prior to 1st April 1983, and the new rate will be applicable in respect of assets created on or after 1st April, 1983 subject to the overall ceiling of Rs. 25 lakhs, provided production commenced on or after 1st April, 1983.(b)Category 'B' Districts (Central Capital Subsidy).-In this category are eleven districts viz., Bhagalpur, Darbhanga, Madhubani, Samastipur, East Champaran. West Champaran, Palamau, Dumka, Deoghar, Sahebganj and Godda. In these districts, Central Capital Investment subsidy at the rate of 15 per cent is admissible to an industrial unit subject to a maximum of Rs. 15 lakhs.(c)Category 'C' Districts (Central and State Capital Subsidy).-In this category there are districts viz., Muzaffarpur, Vaishali, Sitamarhi, Saran, Siwan, Gaya, Nawadah, Gopalganj, Begusarai (except Barauni Block) and Munger. In these districts, Central subsidy at the rate of 10 per cent of the investment made on fixed capital assets on or after 1st April, 1983 is admissible to an industrial unit, subject to a maximum of Rs. 10 lakhs. Investment made prior to 1st April, 1983 will not qualify, for the subsidy. Besides this, an additional amount of 5 per cent of the investment on the fixed assets made on or after 1st April, 1983 will be admissible to the industrial unit subject to a maximum of Rs. 5 lakhs as the State Capital subsidy, thus making a total of 15 per cent subject to a maximum of Rs. 15 lakhs.(d)Districts other than those falling in 'A', 'B' and 'C' categories (State Capital Subsidy).-In the following districts of the State viz., Patna, Katihar, Rohtas, Hazaribagh, Dhanbad, Giridih, Ranchi, Gumla, Lohardaga and Singhbhum and Barauni Block of Begusarai District, State capital investment subsidy at the rate of 15 per cent of the capital investment will be admissible to all new industrial units coming into production on/or after the 17th November, 1980 subject to a maximum of Rs. 15 lakhs.Note.-(1) The Central Capital Subsidy including the categorisation of districts is subject to modifications as may be made by the Government of India from time to time.(2)Where additional central subsidy is available in 'B' and 'C' districts on the ground of the unit being a nucleus plant, the State subsidy will be reduced to that extent.(3)If in the opinion of the State Government, the level of industrial development in a particular sub-division is so low that accelerated assistance is necessary for its industrial growth, the State Government may grant State Capital Subsidy in such a sub-division as admissible in 'A1 category districts at present. For this purpose, the State Government will lay down suitable guidelines in consultation with planning and Finance Departments of the State Government based on objective criteria.
