Opening provisions
Policy at a glance
Headline provisions, each subject to eligibility, ceilings and the notified claim process.
| Provision | Eligible base | Headline value | Timing or condition | Source |
|---|---|---|---|---|
| Capital incentive on qualifying ₹5-50 lakh investment bands | qualifying capital cost | 50% | New units or substantial expansion; qualifying assets must be new and purchased at arm's-length pricing. An existing unit may use the incentive for substantial expansion only once, and physical verification is mandatory. | Policy Section 7.2, printed pp. 6-7. |
| Specified interest and power support for eligible units | eligible units | Up to 5 years | Each provision has its own eligible unit, investment base, ceiling and release point. | Policy Sections 7.3-7.6, printed pp. 7-8. |
| Net SGST reimbursement, with enterprise-level ceilings | new units or qualifying substantial expansion | 7 years | from commencement of commercial production | Policy Section 7.7, printed p. 9. |
| Estate, growth-centre and industrial-area entries in Annexure I | Annexure I | 18 locations | Availability, infrastructure readiness and the enforceable lease for a specific site still need written confirmation. | Policy Annexure I, printed p. 10. |
Start with fit
Eligibility
The value of a benefit depends first on the activity, the kind of unit and the eligible investment. Treat incentives as conditional upside, not as the foundation of the commercial case.
- Manufacturing New manufacturing units may qualify unless the activity is on the Negative List. Substantial expansion is also covered where the policy definition is met.
- Services A new service unit must appear on the Positive List for Service Sector. Eligible listed service units may also qualify when undertaking substantial expansion.
- Priority status Priority-sector status can increase specified capital and capital-interest support, but does not replace the underlying eligibility test.
- Registration and compliance Policy registration, applicable laws, pollution-control requirements, local-employment obligations and the separate operational guidelines still apply.
Policy Sections 5.1-5.7 and Annexures III-IV, printed pp. 4-5 and 11-12.
Explore eligible sectorsPolicy support
Support available
Each provision has its own eligible unit, investment base, ceiling and release point. The summaries below keep those conditions beside the headline benefit.
Establish and finance
Stamp duty and registration fees
100% reimbursement
- Who may qualify
- Eligible new units allotted land in a Government industrial estate, park or growth centre.
- When it is claimable
- After commercial production or operation starts. The required land area must be stated in the DPR or lender appraisal.
Policy Section 7.1, printed p. 6.
Capital investment incentive
50% of qualifying capital cost
- ₹5-25 lakh investment
- Maximum incentive of ₹15 lakh.
- Above ₹25-50 lakh investment
- Maximum incentive of ₹30 lakh.
- Important conditions
- New units or substantial expansion; qualifying assets must be new and purchased at arm's-length pricing. An existing unit may use the incentive for substantial expansion only once, and physical verification is mandatory.
- Local skilled-workforce uplift
- An additional 10% of the calculated incentive may apply, within the ceiling, when APST or permanent residents make up at least 50% (or 5 skilled workers) in the ₹5-25 lakh band, or at least 50% (or 10 skilled workers) in the above ₹25-50 lakh band. Priority status has a separate 10% uplift within the same ceiling.
Policy Section 7.2, printed pp. 6-7.
Capital interest subvention
Band-based support for up to five years
- ₹5-25 lakh investment
- 6% annually, maximum ₹10 lakh; priority units: 8%, maximum ₹15 lakh.
- Above ₹25 lakh investment
- 5% annually, maximum ₹20 lakh; priority units: 6%, maximum ₹25 lakh.
- Important conditions
- For new units or qualifying substantial expansion using new, arm's-length assets. A service unit needs at least ₹5 lakh in qualifying new building, shed or durable assets. Support is based on eligible loan amounts actually disbursed by a scheduled commercial bank or RBI-registered financial institution; the unit bears at least 2% interest. Release begins after commercial production or operation.
Policy Section 7.3, printed p. 7.
Working capital interest subvention
5% annually for up to five years
- Overall ceiling
- Maximum ₹50 lakh across five years, and no more than 100% of the eligible physical-asset investment.
- Important conditions
- New or existing eligible GST-registered units with a working-capital loan from a scheduled commercial bank or RBI-registered financial institution. The five consecutive years run from policy registration. The unit bears at least 1% interest, with annual reimbursement against the bank's interest-payment certificate.
Policy Section 7.4, printed pp. 7-8.
Operate and retain eligible growth
Power subsidy for manufacturing
₹2 or ₹1 per unit for five years
- Manufacturing MSMEs
- ₹2 per unit on 11 kV or 33 kV connections, up to ₹75 lakh a year.
- Large factories and bulk consumers
- ₹1 per unit on 132 kV or higher connections.
- Important conditions
- For new units or substantial expansion. Calculated on units consumed, the subsidy excludes load security, interest, taxes and other charges. Aggregate support cannot exceed 100% of plant-and-machinery investment. It is remitted on the bill, and timely power-bill payment is required.
Policy Section 7.6, printed p. 8.
Net SGST reimbursement and VAT exemption
Seven-year tax support
- Net SGST
- 100% of net SGST from commencement of commercial production for seven years, for new units or qualifying substantial expansion. It is capped at 250% of eligible investment for micro enterprises, 200% for small enterprises and 180% for medium and large enterprises. A unit that has availed a similar benefit under another scheme is not eligible for this reimbursement.
- VAT
- The policy states a 99% sales-tax (VAT) exemption. VAT applies to new units or units undertaking substantial expansion for seven years from commencement of commercial production.
- Continuity condition
- After the benefit period, the policy requires continued production or operation for five more years at no less than 70% of the preceding five-year average production, or the full tax benefit may be recovered.
Policy Sections 7.7-7.8, printed p. 9.
Improve operations and reach markets
Green investment support
Support for energy, water and pollution control
- Renewable energy
- 50% of purchase and installation cost for eligible 10-2,000 kW systems, maximum ₹25 lakh. Existing units qualify only when replacing a DG set used to power the industrial unit. Paid 40% after six months, 40% after one year and 20% after two years of verified operation.
- Wastewater recycling
- 50% of eligible technology, machinery and equipment cost, maximum ₹2 lakh; civil works are excluded.
- Pollution-control devices
- 50% of equipment cost, maximum ₹10 lakh, for existing manufacturing units after the required commissioning report.
Policy Sections 7.5.1-7.5.3, printed p. 8.
Electric load carrier
10% of ex-showroom price, up to ₹50,000
- Who may qualify
- New units procuring one eligible carrier with at least 785 kg carrying capacity.
- Important conditions
- One carrier per unit; beneficiaries are selected first-come, first-served, up to 100 units during the policy period. E-rickshaws are excluded.
Policy Section 7.5.4, printed p. 8.
Quality and common facilities
Improve standards and access shared capability
- Testing and certification
- 35% of eligible cost, maximum ₹5 lakh, after obtaining a recognised national or international quality mark. This support is not available for machinery or equipment used directly in manufacturing or rendering services.
- Common Facility Centre
- 50% of recognised facility-use cost, maximum ₹1 lakh per unit per year for three years, for the sectors and organisations specified in the policy.
Policy Sections 7.9-7.10, printed p. 9.
Domestic air freight and export support
Choose the route that fits your market
- Domestic air freight
- 50% of eligible freight for finished goods moved out of Arunachal Pradesh to a destination within India, maximum ₹5 lakh per unit per year for five years, claimed annually.
- Export transport
- For finished goods exported to a destination outside India, 60% of eligible transport cost to an international air or sea port within India, maximum ₹5 lakh per unit per year for five years. Overseas export samples: up to ₹50,000 per enterprise per year for two years.
- Important condition
- A unit may claim either domestic transport support or export support, not both. Export benefits require export-unit registration.
Policy Sections 7.12-7.13, printed pp. 9-10.
Support for underprivileged entrepreneurs
DPR assistance and an industrial-plot allotment provision
- Project report support
- 95% reimbursement of a policy-defined consultant's DPR fee, maximum ₹1 lakh. The definition covers specified Government-registered or empanelled consultants, MSME NIC 70200 management consultants and qualifying domain institutions.
- Industrial-estate access
- 10% allotment of industrial-estate plots for the underprivileged sections specified by the policy.
- Who is covered
- Single mothers and widows, and persons in the specified vision, hearing or locomotor disability categories with 40% disability.
Policy Section 7.11, printed p. 9.
Plan for timing: many provisions become claimable only after commercial production or operation, or after later verification. Build the project cash-flow case before assuming reimbursement.
Land and delivery
Site and lease
The policy states lease rent and tenure for Government industrial sheds and open plots. Availability, infrastructure readiness and the enforceable lease for a specific site still need written confirmation.
- Industrial shed
- ₹3 per sq. ft. per month
- Open industrial plot
- ₹1 per sq. metre per month
Where the policy focuses
Priority sectors
Priority status may increase specified capital and capital-interest support within applicable ceilings. It does not guarantee eligibility or approval.
- Food processingFood-processing industries expressly listed as a priority.
- Non-timber and botanical value chainsBamboo, cane, medicinal plants, herbs, aromatic grasses, tea and coffee.
- Culture-led productsTextiles, Arunachal handloom and handicraft, ODOP and GI industries.
- Tourism and skillsTourism infrastructure and activities, coaching, training and skill development.
- Transition infrastructureCommercial EV charging and waste-to-wealth activities.
- Pharmaceutical industryExpressly named as a priority sector in Annexure III.
Policy Annexure III, printed pp. 11-12.
Match your project to a sectorRead before you model returns
Conditions
- 01
Registration under the policy is open for three years from notification unless the Government extends it. Each benefit has its own duration.
- 02
A unit claiming a similar incentive under another State or Central scheme is not eligible to claim that similar incentive under this policy; other policy incentives remain subject to their own eligibility tests.
- 03
Within three years from commencement of commercial production or operation, a unit must employ at least 20% APST staff in managerial roles and 30% in non-managerial roles, and obtain an Employment Certificate from the competent authority.
- 04
Applicable law, pollution-control requirements and environmental clearances remain mandatory.
- 05
Net SGST support carries a five-year post-benefit continuity condition and potential recovery of the full benefit if the stated threshold is not met.
- 06
Detailed procedures, approval frameworks and checklists are governed by separate operational guidelines. The official notifications and sanctioning authorities prevail.
Policy Sections 5.1, 5.4, 5.6-5.7 and 7.7, printed pp. 4-5 and 9.
Your next step
Your checklist
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1
Classify the activity
Confirm manufacturing or service status, Positive or Negative List treatment, priority status and whether the project is new or a substantial expansion.
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2
Define the investment
Separate qualifying plant, machinery, building and durable assets; identify the investment band and funding source.
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3
Verify site and utilities
Obtain written land, lease, access, power and approval information for the actual project location.
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4
Model timing and conditions
Include ceilings, reimbursement timing, employment obligations and a downside case that does not depend on incentive receipts.
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5
Start the official process
Use the proposal and Single Window routes to confirm documents, registration and the claim pathway with the responsible authority.
Bring the project, not just the question
Start with your sector, location and investment band.
Share a clear project outline so the facilitation team can direct you to the relevant eligibility, land and approval route.
Official-source note: This page is a plain-language investor overview. Eligibility, definitions, ceilings, documentation and procedures must be confirmed against the official Gazette and the applicable operational guidelines.
