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Assam is the second largest State of North East India by its geographical area having highest population in the region.The State is spread over a geographical area of 78.44 thousand sq km and shares boundary with the states of Arunachal Pradesh, Nagaland and Manipur in the East, West Bengal and Bangladesh in the west, Meghalaya, Tripura and Mizoram in the south and Bhutan and Arunachal Pradesh in the North.The State has 27 districts, out of which four districts are under the Bodoland Territorial Council (BTC). Topography of the major part of the state is plain except two districts namely Karbi-Anglong and Dima Hasao. Altitude of the State ranges between 50 mt to 1650 mt from MSL.

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  • The North East Industrial and Investment Promotion Policy 2007 of the Government of India have laid down a number of fiscal incentives for investors in North East India.
  • The new policy would be valid for 10 years .The provisions of the NEIIPP, 2007 would provide the requisite incentives as well as an enabling environment to speed up the industrialization of Assam.
  • The highlights of the incentives for all industrial units, new as well as existing units on their substantial expansion, located anywhere in the North East are:
  • Industrial Excise Duty Exemption.
  • 100% Income Tax Exemption.
  • Capital Investment subsidy in plant and machinery @ 30%. without any upper limit of investment.
  • Transport Subsidy Scheme: 90% on raw materials coming from outside and 50% on finished goods inside the state.
  • Interest subsidy @ 3% on working capital loan for a maximum period of 10 years from the date of commencement of production.
  • Comprehensive insurance – reimbursement of 100% insurance premium.
  • Incentives package also available for the service sector – hotels, nursing homes, vocational training institutes, etc.
  • Incentives for bio-technological industry as applicable to other industries.
  • Incentives for power generating industries – incentives under Sec. 81(A) of Income Tax Act to continue. Power generating plants (all types) up to 10 MW will be eligible for capital investment subsidy, interest subsidy and comprehensive insurance.
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Assam intends to attract maximum Foreign Direct Investment (FDI) and will put in sustained efforts to that end. The State Government has constituted a separate cell – The Industrial Investment Secretariat Cell (IISC) to facilitate investment – and a High Level Committee to accord fast track clearance for investment proposals. The Cell will function as a single point of contact for all inquiries from investors including supplying of information pertaining to permissions/ procedures/ guidelines.



  • Announced w.e.f 01.-10-2008 will be valid for 5 (Five) years. The Highlights of the policy are:
  • VAT Exemption – for 7 years with ceiling of maximum 200% of fixed capital for Micro, 150% for Small & 100% for medium & large new units and for same period with corresponding ceiling of maximum 150%, 100% & 90% for units undergoing substantial expansion.
  • Interest subsidy on Term Loan provided to Micro Industrial Units @ 30% of the amount of interest paid on term loan for a period of 5 years from the date of commercial production subject to a ceiling of Rs. 1.00 lakh per unit/year.
  • Subsidy on quality certification/technical know-how to the extent of 50% subject to a ceiling of Rs. 1.00 lakh per unit.
  • Power subsidy - 30% subsidy on power tariff on actual units consumed for 5 years up to connected load of 1.00 MW subject to ceiling of Rs. 10.00 lakhs per annum & 25% for connected load above 1.00 MW subject of ceiling of Rs. 25.00 lakhs per annum.
  • Subsidy on drawal of power line - 25% of the cost payable for drawal of power line including the cost of transformer will be subsidized to micro and small industrial units to a ceiling of Rs. 10.00 lakhs per unit. This subsidy shall be available only once to a unit.
  • 100% reimbursement of Stamp Duty and Registration Fees to encourage setting up of industrial park/estate through purchase of private/government land.
  • Special incentives for mega projects to encourage the establishment of projects with large capital investment of minimum of Rs. 100 crores or generating minimum 1000 regular employment. All incentives including priority land allotment, the ceiling amount of subsidy and/or the period of validity of tax concessions under this policy will be relaxable on case to case basis.
  • Special incentives for revival of sick units in form of exemption upto 99% of tax payable under VAT for 3 years with ceiling of 100% of additional investment made for rehabilitation.
  • Reimbursement of 50% rent and transport cost for participation in Trade Fairs both inside & outside of country.

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  • Market linkage has been identified as one of the critical factors for development of Micro and Small Scale sectors. Government will actively encourage trade with neighboring countries and countries in South East Asia.
  • Participation in trade fair. All Micro and Small Enterprises in commercial production irrespective of year of establishment will be eligible for the following financial support under marketing assistance scheme:
  • Reimbursement of 50% of the rent/fee paid by the unit for participation in trade fair/ exhibition sponsored or recognized by Government within India subject to a ceiling of Rs.10,000.
  • Reimbursement of 50% of the transport cost incurred on exhibits for participation in Government sponsored/ recognized trade fair/ exhibition in South East Asia subject to a ceiling of Rs.50,000.00 per exhibition.
  • A unit can avail this benefit for a maximum three times.
  • Units promoted by women and physically handicapped entrepreneurs (more than 50% ownership) will be given preference in selection for participation in trade fair.


For facilitating promotion and development of medium & large scale enterprises, the State Government will notify a separate preference policy in respect of procurement of goods produced by medium and large enterprises by its department or its aided institutions and State PSUs.


Announced w.e.f 01.-10-2008 will be valid for 5 (Five) years. The Highlights of the policy are:


Announced w.e.f 01.-10-2008 will be valid for 5 (Five) years. The Highlights of the policy are:

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