Tripura is the second smallest state in India. It was formally declared a Union Territory on November 1, 1957 and elevated to the status of a full fledged state on January 21 1972. Tea is a major industry in Tripura. There are 55 registered tea gardens covering an area of 6045hectares and producing 54kg of tea per year. Handloom weaving is the single largest industry and is essentially a tribal household industry. A design center on handicrafts is functioning at Agartala and employs over 5000 craftsmen. The sericulture industry is fast developing and promises a bright future.
Incentives:
50% subsidy (up to Rs.10,000) on the cost of developing plots in industrial areas
Rent subsidy on leased land on a tapering scale, 80% to 40%, for the first 3 years
Capital investment subsidy of 25% (up to Rs.2,500,000) of fixed assets
30% power subsidy (up to Rs.10,000 per year) for 3 years
Transport subsidy for procuring raw materials up to the Siliguri rail-head
10% price preference on all government purchases of goods made in the state
5-year exemption from sales tax on finished goods for industrial units
5-year income tax holiday for new industrial units set up in the Northeast
The scheme called the Tripura Incentive Scheme, 2002 (hereafter referred to as “Scheme/2002”) for industrial units (hereafter referred to as “units”) has been set up in State of Tripura.
Incentives for Industries
State Government:
Capital Investment Subsidy to eligible industrial units @ 30% of fixed capital investment. Additional subsidy is also provided in certain cases. However, total subsidy in a particular case would be subject to a ceiling of Rs.25 lakhs.
Exemption from payment of Sales Tax for a period of 5 years from the date of commencement of commercial production.
15% Price Preference to industrial units, on purchases made by State Government Departments/ Agencies.
Central Government:
Central Transport Subsidy @ 90% of transport cost of raw material brought from outside the North-eastern region as well as the finished goods sent from the North-eastern region to other parts of the country. The transport cost between Siliguri (the entry point to the North-east) and the factory site only is considered for subsidy calculations. In addition, subsidy is also available @ 90% of transport cost on movement of raw materials and @ 50% of transport cost on movement of finished goods from one state to another within the North-eastern region.
Income Tax Exemption for 5 years for the new industrial units set up in the North-eastern region.
