( ) Page: 1/15. Committee on Subsidies and Countervailing Measures SUBSIDIES

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1 5 September 2017 ( ) Page: 1/15 Committee on Subsidies and Countervailing Measures Original: English SUBSIDIES NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES INDIA Supplement The following communication, dated 31 August 2017, is being circulated at the request of the Delegation of India. (In continuation of notification No. G/SCM/N/284/IND dated 27 October 2016) In pursuance of US notification no. G/SCM/Q2/IND/20 Dated 10 October 2011, the following notification constitutes India's new and full notification of information on some of the subsidy schemes granted or maintained at the level of State Governments in India, during the period indicated against each programmes. The information provided in this notification is for transparency purposes in order to clarify the operation of programmes. In accordance with Article 25.7 of the WTO Agreement on Subsidies and Countervailing Measures (ASCM), this notification does not in any way prejudice the legal status, nature or effects of Government assistance programmes under the ASCM and GATT 1994, including as to whether or not the programmes notified are specific within the meaning of the ASCM.

2 - 2 - TABLE OF CONTENTS 1 STATE GOVERNMENT OF ANDHRA PRADESH STATE GOVERNMENT OF BIHAR STATE GOVERNMENT OF JHARKHAND STATE GOVERNMENT OF MAHARASHTRA STATE GOVERNMENT OF PUNJAB STATE GOVERNMENT OF WEST BENGAL Incentive Scheme, 2004 of the State Government of West Bengal West Bengal State Support for Industries Scheme, STATE GOVERNMENT OF ANDHRA PRADESH 1. Title of subsidy The Industrial Investment Promotion Policy (Andhra Pradesh Industrial Policy). 2. Period of notification Financial years to Policy objective and/or purpose of subsidy Promote Andhra Pradesh as an attractive destination for industrial investments and to market Andhra Pradesh as competitive investment destination for Foreign Investments; To create enabling environment for ensuring maximum value addition to the abundant locally available resources; To enhance quality of life in the State to suit to the needs of the investors; To attract and develop appropriate entrepreneurial leadership, management and HRD systems; Alleviate regional disparities in economic growth; Improving infrastructure by facilitating investment in industrial infrastructure in private sector; To encourage establishment of New Tiny and Small Scale Industries particularly in rural areas to achieve the twin objectives of employment generation and utilization of local resources; To encourage, attract and involve women entrepreneurs in industrial capacity building; Special emphasis on qualitative competitiveness through technology upgradation and protecting Intellectual Property Rights; To arrest environmental degradation; Encourage cluster concept to make the industries in the Clusters Globally Competitive; To develop effective regulatory mechanism for entry and operation of firms; Create a market driven environment with the private sector being the primary engine for growth;

3 - 3 - Special Emphasis for restructuring and consolidation of sick industrial units. 4. Background and authority of the subsidy Background for the scheme is as mentioned in the "objectives" above. The implementing authority is Industries & Commerce (IP) Department of the State Government of Andhra Pradesh. 5. Form of the subsidy (i.e. grant tax, loan, concession) Grants / Tax exemptions. 6. To whom and how subsidy is provided and how determined 15% investment subsidy on fixed capital investment given to SSI/Tiny industrial units subject to a maximum of Rs.15 lakhs. An additional subsidy of 5% on fixed capital investment subject to a maximum of Rs.5 lakhs provided to SC/ST entrepreneurs; Growth enabling incentives: 25% of the tax paid during one financial year ploughed back to Tiny/SSI/Large & Medium Industries as a grant by the Government towards the payment of tax during next year; Credit Support: 3% interest rebate on Prime Lending Rate (PLR) given on the term loan taken by new Tiny/SSI industrial units subject to a maximum of Rs.5.00 lakh per year for a period of 5 years. 5% of the project cost provided as seed capital assistance to SSI/Tiny industries started by SC /ST entrepreneurs as a grant for the industries which were sanctioned seed capital assistance by Prime Lending Institutions under National Equity Fund Scheme, subject to a maximum of Rs.5 lakhs; Sales tax exemption on Purchase of raw materials for export oriented units. For export oriented units, APSFC extended financial assistance at a concessional rate of interest. Export Industries were given a 30% grant for ground rent for participation in the international trade fairs subject to a maximum limit of 9 sq. mts; 25% of the tax paid during one financial year ploughed back to Tiny/SSI/Large & Medium Industries as a grant by the Government towards the payment of tax during next year. Benefits are available for 5 years from the date of commencement of production; Reimbursement of 50% of the expenditure incurred by the industrial units in getting the BIS, ISO 9000 / or any other national or international certification subject to a maximum of Rs.1.00 lakh; Under Credit Guarantee Fund (Scheme) operated by SIDBI, credit is provided without any collateral security for industrial units up to a limit of Rs.25 lakhs of investment. To support this initiative and also to improve credit flow to small scale sector, a corpus fund provided matching the contribution made by the consortium of industries in IE's/Clusters subject to a maximum limit of Rs.25 Lakhs. 7. Subsidy per unit or in cases where there is not possible, the total amount or the annual amount budgeted for that subsidy No specific budget provided for these incentives. Electricity duty exemption given as and when the mega textile unit comes into production. 8. Duration of subsidy and or any other limits attached to it, including date of inception/ comment The subsidy is valid until 5 years from the date of its commencement i.e

4 Statistical data permitting an assessment of the trade effects of the subsidy It is not possible to estimate what trade effects, if any, might have resulted from this program. 2 STATE GOVERNMENT OF BIHAR 1. Title of the subsidy Industrial Incentive Policy, 2006 by the State Government of Bihar. 2. Period covered by the notification Financial years to Policy objective and/or purpose of subsidy With the purpose of balanced industrial growth in the state and there was need to establish new industries and to revive the sick and closed units, the Industrial Policy was reviewed. After reviewing the policy, the Industrial Incentive Policy 2006 was formulated. Overall policy objectives and the purpose of the IIP, 2006 was: a. To create favorable circumstances for establishment of industries in the State of Bihar. b. To provide rapid clearance procedures for establishing industries, to issue license and certificates and to provide a congenial atmosphere to the investors. c. To provide for rapid development of physical and social infrastructure d. Provision of self-certification in order to simplify the inspection of factories. e. To meet the requirement of land for industries and development schemes, Land Bank be established in the state. f. To develop handicraft, handloom, khadi, silk and village industries and marketing arrangements made for small, tiny, cottage, handloom and handicraft industries. g. To enhance capital investment in the industrial areas and invite the private sector for investment and to encourage public private partnership for this purpose. h. To develop infrastructure. i. In order to revive sick units, to identify such units and to suggest necessary remedial measures and to prevent sickness by developing a district level monitoring system. Purpose is to grant pre-production incentive of subsidy/exemption from stamp duty and registration fee and post production incentive of grant/exemption for preparation of project reports, purchase of land/shed, technical know-how, captive power generation/diesel generating set, quality certificate, VAT, luxury tax, electricity duty, conversion fee, market fee etc. 4. Background and authority of the subsidy Background is as stated in the objectives above. The implementing authority for the scheme was the Department of Industries, State Government of Bihar. 5. Form of the subsidy (i.e. grant, tax, loan, concession) Grant/ Exemption.

5 To whom and how subsidy is provided and how determined i. Stamp duty and Registration fee: Tiny, small, medium and large scale industries which are to be established in the industrial area / shed and outside the area of the Authority would get full (100%) exemption in stamp duty and registration fee in lease / sale / transfer. ii. Project- Report Incentive: Reimbursement of the cost incurred in the project report preparation by the industrial units at the rate of 50% subject to a maximum of Rs.75,000/- be made available provided, the project report is prepared by any of the firms recognised by the Industry Department. iii. Financial assistance for technical-know-how: If an entrepreneur obtains technical Know-how from any recognised National research center / laboratory or institution to establish or to expand his industry, he will be reimbursed 30% (maximum Rs lacks) of the fee paid to the institution/organization for the technical know-how. iv. Incentive Grant for capital investment on Captive Power Generation/Diesel Generating Set: 50% of the amount spent on plant and machinery in the establishment of Captive Power Generation/Diesel Generating set granted to the industry. v. VAT re-imbursement: The new units to avail 80% reimbursement against the admitted VAT amount deposited in the account of the Government, for a period of ten years. The maximum subsidy amount is payable 300% of the capital invested. For zero VAT units (which means the production of items which do not attract VAT), and which pay income tax would be eligible for incentive up to a maximum utilization of 70% of the installed capacity. vi. VAT reimbursement for units working under adverse situations: Facilities granted for the units working under adverse situation. Such working units which have been working under adverse situation for years be reimbursed 25% of the deposited VAT amount in the account of state government against admitted VAT amount: vii. Exemption from Annual Minimum Guarantee (AMG) / Monthly Minimum Guarantee (MMG). Working units at present and new units would avail exemption from AMG / MMG from the date of declaration of the New Industrial Policy. viii. Central Sales Tax (CST): Only 1% CST would be payable on the items produced by the registered small and medium units in Bihar. ix. Reimbursement of the cost incurred in the project report prepared by industrial units at the rate of 50% subject to a maximum of Rs.75, 000. x. Grant of 50% (fifty per cent) of the amount spent on plant and machinery in the establishment of Captive Power Generation/Diesel Generating set. xi. Incentive for quality certification: 75% of cost incurred in obtaining certificate of I.S.O. standard (or equivalent) from reputed national/international level organizations, would be reimbursed by the State Government. xii. Handloom Sector: electricity grant of 75 paise per unit in electricity tariff. Facilities / concession to the industrial units was to be made available only after the commencement of production. 7. Subsidy per unit or in cases where there is not possible, the total amount or the annual amount budgeted for that subsidy There is no prior budget allocation for the IIP, 2006.

6 Duration of subsidy and or any other limits attached to it, including date of inception/ comment The policy was available from 1 April 2006 for 5 years from the date of issue of orders. 9. Statistical data permitting an assessment of the trade effects of the subsidy It is not possible to estimate what trade effects, if any, may result from this program. 3 STATE GOVERNMENT OF JHARKHAND 1. Title of subsidy Industrial Policy, 2001 of State Government of Jharkhand. 2. Period covered by the notification Financial years to Policy objective and/or purpose of subsidy After the establishment of State of Jharkhand on 15th November 2000, (the state government) to achieve industrial growth, the State Government of Jharkhand announced the Industrial Policy, 2001 to capitalize the industrial potential through planned utilization and development of natural and human resources and to gradually increase the employment opportunities. Broad objectives of the policy are: i. Optimal utilization of agro-climatic, mineral and human resources of the State. ii. To promote economic activities to ensure maximum capital investment in the State with the objectives of increasing employment opportunities, improving standard of living of people at large, especially the deprived and the down trodden sections of the society and to ensure all round development of the State. iii. Identification of thrust areas and thrust zones to prioritize the sectors and categorization of backward regions with respect to industrialization. iv. To develop state of the art technology and infrastructure so as to ensure planned and accelerated industrial development. v. To ensure balanced regional development so as to prevent socio-economic distortions due to backwardness of any region. vi. To encourage and involve private sector participation in the process of planned and rapid industrialization of the State. vii. To promote export of such items, in which the State holds advantage vis-a-vis other states. viii. Revival of viable sick units. ix. Simplification of procedures and to ensure administrative and legal reforms so as to provide hassle free sensitive administration and time bound effective disposal of matters in a transparent manner. x. To take steps to protect and promote rural handicrafts so as to conserve and enrich cultural heritage, traditions and customs of the regions.

7 - 7 - xi. To provide better development opportunities to scheduled castes, scheduled tribes, handicapped, weaker sections and women and to ensure their participating in the development process. xii. To promote research and development, technological upgradation and qualitative improvement and utilization of state of art technology to improve product, production and productivity. 4. Background and authority of the subsidy Background stated and objectives above. The implementing authority for the scheme is the Industry Department of the State Government of Jharkhand. 5. Form of the subsidy (i.e. grant, tax, loan, concession) Grants/Concessions/ Exemptions, as applicable 6. To whom and how subsidy is provided and how determined The following types of incentives were given and they were admissible only once to a unit, which came into commercial production during the period this policy remain effective: 1. Capital Investment Incentive: admissible to small and medium scale industries. This was applicable to industries 'A', 'B', & 'C' and incentives were 15%, 20% and 25%. Also additional 5% incentive over and above with a cap of Rs. 5 lakhs in thrust areas, 100% export oriented units, SC/ST entrepreneurs, women entrepreneurs, handicapped persons and ex-servicemen shall be admissible. 2. Captive Power Generating Subsidy: admissible to new industries in various categories 'A', 'B', and 'C' of districts at 155, 20% and 25% and also additional 5% incentive over and above with a cap of Rs lakhs in thrust areas, 100% export oriented units, SC/ST entrepreneurs, women entrepreneurs, handicapped persons and ex-servicemen shall be admissible. 3. Interest Subsidy: admissible to new industries on the interest actually paid to be financial institution/ banks on loans taken by such new industry. This was applicable to industries 'A', 'B', & 'C' and incentives were 15%, 50% and 60%. Also the subsidy is limited to a sum of Rs. 100 lakhs per annum provided the total interest subsidy shall not exceed 2% of the total sales amount made in the State of Jharkhand and/ or in course of interstate sales as supported by the certificate/ document issued by the competent commercial tax authority. This subsidy was admissible for a period of 5 years of all categories of industries from the date of commercial production. 4. Stamp Duty and Registration: An eligible industrial unit irrespective of its location will be entitled to exemption from payment of 50% of Stamp Duty and registration fee paid for registration of documents within the State relating to purchase/ acquisition of land and buildings for setting up of a new unit. 5. Feasibility Study-Project Report Cost Reimbursement Subsidy: the industrial units entitled for feasibility study-project report cost reimbursement of the cost incurred in preparation of such report subject to a ceiling of Rs. 50,000/-. 6. Pollution Control Equipment Subsidy: capital investment subsidy for installation of pollution control and monitoring equipment allowed on the certificate of the State Pollution Control Board about the necessity for such installation. This incentive admissible to new and existing industrial units. This subsidy available was 20% of the cost of the pollution control and monitoring equipment subject to ceiling of Rs. 20 lakhs, in addition to the capital investment subsidy admissible to such industrial unit.

8 Incentive for Quality Certification: Small Scale/ Ancillary Industries were encouraged to seek ISI/ ISO certification. The State Government facilitate for reimbursement of charges for acquiring ISO-9000 (or its equivalent) certification to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in each case from the Central Government. 8. Mega Units: special packages were formulated for the new projects with an investment of more than Rs. 50 crores on case to case basis through direct negotiation with prospective investors. 7. Subsidy per unit or in cases where there is not possible, the total amount or the annual amount budgeted for that subsidy There was no prior budgeted amount allocated for the purpose. 8. Duration of subsidy and or any other limits attached to it, including date of inception/ comment Subsidy under the scheme was available till 31 March Statistical data permitting an assessment of the trade effects of the subsidy It is not possible to estimate what trade effects, if any, may result from this program. 4 STATE GOVERNMENT OF MAHARASHTRA 1. Title of subsidy Package Incentive Scheme, 2007 of the State Government of Maharashtra. 2. Period covered by the notification Financial years to Policy objective and/or purpose of subsidy The policy objectives were to achieve higher and sustainable economic growth. Emphasis was on balanced regional development and employment generation through greater private and public investment in industrial development. Amongst others, the 2007 package of incentives consisted of: i. Industrial Promotion Subsidy (IPS): The quantum of subsidy was linked to the fixed capital investment. Payment of IPS every year is equal to 25% of any relevant taxes paid by the eligible unit to the State or to any of its departments or agencies. The quantum of incentives for these units is limited to 20%, 30%, 40%, 50%, 60% of FCI in "B", "C", "D", "D+", No Industry District Categories respectively. Existing/New Micro, Small and Medium Manufacturing Enterprises, LSI (including Manufacturing IT/BT) Units, qualifying as Expansion/Diversification Units, also eligible to get the Incentives for Expansion /Diversification, equivalent to 75% of the incentives admissible for new units. ii. Interest Subsidy Scheme: All new (not for expansion) eligible Micro & Small Manufacturing Enterprises in textile, hosiery, knitwear and readymade garment sector will be eligible for interest subsidy in addition to Industrial Promotion Subsidy. The Interest Subsidy was payable only on the interest actually paid to the banks and public financial institutions on the term loan for acquisition of fixed capital assets. The amount of interest subsidy was effective rate of interest (after deducting interest subsidy receivable any institution / under any Govt. of India scheme or 5% p.a., whichever is less).

9 - 9 - iii. Royalty Refund: All eligible units, new as well as units undertaking expansion in Vidarbha region amendment for major minerals, were eligible for refund of royalty paid on purchase of minerals from mine owners within the State of Maharashtra for a period of five years from the date of commencement of commercial production. iv. Exemption from Electricity Duty in C, D and D+ areas: In Group A and B areas, 100% Export Oriented Units (EOUs), Information Technology Manufacturing Units and Bio-Technology Manufacturing units were exempted from payment of electricity duty for a period of 7 Years. v. Waiver of Stamp Duty: BT Manufacturing and IT Manufacturing Units in Public Parks: 100%. BT Manufacturing and IT Manufacturing Units in Private Parks: 75%. Mega Projects - 50% for first conveyance deed only. vi. Power Tariff Subsidy: (2013) Eligible New Micro, Small and Medium Enterprises (MSME) were eligible for power tariff subsidy. vii. Incentives to MSME: 5% subsidy on capital equipment for technology up gradation, subject to a maximum of Rs.25 lacs (ii) 75 % subsidy on the expenses incurred on quality certification limited to Rs. 1 Lakh.(iii) 25% subsidy on capital equipment for cleaner production measures, limited to Rs.5 Lakhs (iv) 75 % subsidy on the expenses incurred on patent registration limited to Rs. 10 Lakh for the National patents and Rs. 20 lakh for the International patents. Incentives for Credit Rating of MSMEs in all categories of areas - 75% of the cost of carrying out Credit Rating by Small Industries Development Bank of India/ Government accredited Credit Rating Agency, limited to Rs. 40,000. New MSMEs, LSI and Expansion thereof eligible for the following incentives in all categories of areas (i) 75% of cost of water audit limited to Rs lakh; (ii) 75% of cost of energy audit limited to Rs lakh; (iii) 50% of the cost of Capital Equipment under the measures to conserve/recycle water, limited to Rs. 5 lakh; (iv) 50% of the cost of Capital Equipment for improving energy Efficiency, limited to Rs. 5 lakh. The Package Scheme of Incentives, introduced in 1964, was amended from time to time. The last amended Scheme, commonly known as the 2001 Scheme was operative from 1 April 2001 to 31 March 2007 with modification from time to time. Thereafter the Package Scheme of Incentives 2007 was brought into effect from 1 April 2007 to 31 March This scheme has since been subsumed under Package Incentive scheme The implementing authority for the scheme was Industries, Energy and Labour Department of the State Government of Maharashtra. 4. Form of the subsidy (i.e. grant, tax, loan, concession) Exemption/Refund. 5. To whom and how subsidy is provided and how determined Details of the scheme has been stated under the heading "Policy objectives and/or purpose of the subsidy".the following categories of Eligible Industrial Units in the Private Sector, State Public Sector/ Joint Sector and the Co-operative Sector but not in the Central Public Sector were eligible for incentives under the Package Incentive Scheme, 2007 Scheme: i. Industries listed in the First Schedule of the Industries (Development and Regulation) Act, 1951, as amended from time to time ii. Manufacturing Enterprises as defined in the MSMED Act, 2006.

10 iii. Information Technology (IT) units registered with Directorate of Industries or MIDC or Development Commissioner (SEEPZ) or STPI in the State, iv. Poultry - in the case of poultry, only capital expenditure on land, building and equipment will be considered eligible for incentives. v. Cold Storages and Agro Industries, vi. Biotechnology (BT) units as specified by Government from time to time, which are outside the purview of any registering authority mentioned above. 6. Subsidy per unit or in cases where there is not possible, the total amount or the annual amount budgeted for that subsidy Amount sanctioned for the period to are as follows: (Amount Rupees in Crores) Financial Expenditure Units which Subsidy per unit Year availed Duration of subsidy and or any other limits attached to it, including date of inception/ comment An application for eligibility under the 2007 Scheme was required to be filed to the implementing agency by an Eligible Unit only after it has taken all the necessary Steps, but not later than the 31 March Statistical data permitting an assessment of the trade effects of the subsidy It is not possible to estimate what trade effects, if any, may result from this program. 5 STATE GOVERNMENT OF PUNJAB 1. Title of subsidy Textile Policy, 2006 of the State Government of Punjab. 2. Period covered by the notification Financial years to Policy objective and/or purpose of subsidy The main objectives of this Policy are: a. Facilitate the textile industry of the State of Punjab to attain and sustain a preeminent global standard. b. Facilitate cluster formation to promote collective efficiency of textile units by improving their business processes and support systems. c. To provide special benefits to textile industry. The proposed Policy was to reasonable boost to textile industry in the State of Punjab and create employment opportunity to large number of youths in the state.

11 Background and authority of the subsidy The Textile Policy 2006 notified on 11 July 2006 is applicable from the date of notification and has been subsumed in the New Industrial Policy The implementation authority for the scheme is the Department of Industry and Commerce, State Government of Punjab. 5. Form of the subsidy (i.e. grant, tax, loan, concession) Grants / Concessions. 6. To whom and how subsidy is provided and how determined Under the Industrial Policy 2009, the State Government provided the following to the Textile industry in the State of Punjab: i. Technology Up-gradation Fund Scheme: Capital ceiling was increased under this scheme for small scale textile industries. State Government would facilitate maximum investment through this scheme for spinning, weaving and processing industries which are capital intensive and have high employment generation potential. ii. Cluster Development: This was for development of integrated textile park with all requisite facilities at one place for the textile industry and is likely to give a major boost to textile industry in the State of Punjab. iii. It provided the following concessions to the textile industry in the State of Punjab a. Reducing Electricity Duty on mega projects to half for a period of five years. Electricity duty exemption was as and when the mega textile unit comes into production. b. As a general policy, waiver of the Departmental charges for mega projects in the textile industry. As per Textile Policy 2006, concessions were provided directly to mega Manufacturing Units. 7. Subsidy per unit or in cases where there is not possible, the total amount or the annual amount budgeted for that subsidy No budget provision for the aforesaid schemes. 8. Duration of subsidy and or any other limits attached to it, including date of inception/ comment Date of inception/ commencement of Textile Policy was the date of Notification i.e The Policy was subsumed in the Industrial Policy, Statistical data permitting an assessment of the trade effects of the subsidy It is not possible to estimate what trade effects, if any, may result from this programme 6 STATE GOVERNMENT OF WEST BENGAL 6.1 Incentive Scheme, 2004 of the State Government of West Bengal 1. Title of subsidy Incentive Scheme, 2004 of the State Government of West Bengal.

12 Period covered by the notification Financial years to Policy objective and/or purpose of subsidy Policy objective was to extend certain support for large and medium industrial projects in the State of West Bengal and to give additional financial support for promotion of larger and medium scale industries in the backward regions of the state. 4. Background and authority of the subsidy The West Bengal Incentive Scheme 2004 came into operation in supersession of the West Bengal Incentive Scheme The implementing authority was the Government of West Bengal Industrial Development Corporation. Details of the scheme are available at: 5. Form of the subsidy (i.e. grant, tax, loan, concession) Exemption/Refund. 6. To whom and how subsidy is provided and how determined The 2004 Scheme was generally applicable to all large/small scale projects and tourism units in large/small Scale sector, to be set up and also expansion project of existing units on or after 1 April The units might be in the private sector, co-operative sector, and joint sector as also companies/undertakings owned or managed by the State Government. i. Interest Subsidy: Approved project entitled to interest subsidy to the extent of 25% of the annual interest liability on the term loan borrowed from a commercial bank/financial institution, for implementation of the approved project, subject to a limit of Rs. 100 lakhs per year depending on the location of the unit as follows : - Group 'B' area : 5 years - Group 'C' area : 7 years (Note: Group 'A' area covered Kolkata Municipal Corporations Area) ii. Waiver of Electricity Duty: An eligible unit for its approved project was entitled to waiver of electricity duty on the electricity consumed for its production/operation activity for a period of 5 years from the date of commercial production/operation. iii. State Capital Investment Subsidy: An eligible unit located in a group 'B' area and set up in the State entitled to the State Capital Investment 7.5% of the Fixed Capital Investment subject to a limit of Rs.150 lakhs and unit located in area 'C' will be entitle to 10% of the Fixed capital investment subject to a limit of Rs.250 lakhs. iv. Additional Incentive on Generation of Employment: The units entitled to reimbursement of the undernoted expenditure incurred by it if at least 50% of the employees in the unit are recruited from amongst the persons registered with the Employment Exchanges of the State and Employment Exchange registration cards (original or attested photocopies) are produced at the time of claiming this incentive. v. Refund of Stamp Duty & Registration Fee: An eligible unit irrespective of its location entitled to refund of 50% of stamp duty and registration fee paid by it for the purpose of registration of documents within the State relating to purchase/acquisition of land and buildings.

13 vi. Subsidy for conversion for use of piped gas: Eligible to subsidy equal to 75% of the investment for necessary conversion of furnace etc., subject to a limit of Rs lakhs. vii. Subsidy for Quality Improvement in the Small Scale Sector (not however be applicable to IT units): An eligible industrial unit in the Small Scale Sector was entitled for reimbursement of 50% of the expenditure, subject to a maximum of Rs lakhs (Rupees five lakhs) incurred for modernization of unit, installation of the Pollution Control Device and for obtaining ISI Certification/ISO 9000/ISO from approved Institutions/Research Laboratories with or without expansion project. viii. Additional Incentive for certain sectors: New units in the area of Information Technology (Software, Hardware), Electronics, Agro and Food Processing Industry, HPL Downstream Projects, Newspaper Industry, Bio-Technology, Jute Diversification, Agricultural implements, Tourism & Hosiery located in Group 'A' area were eligible to the same incentives as were normally admissible to a new unit located in Group 'B' area. ix. Incentives for leather units both in the tanning and manufacturing sectors on relocation accompanied with modernization. The incentives under the 2004 scheme were available to all large/small scale projects and tourism units in large/small Scale sector, to be set up and also expansion project of existing units on or after 1 April 2004, the units may be in the private sector, co-operative sector, and joint sector as also companies/undertakings owned or managed by the State Government, depending on the type of incentive stated above. Further, the scheme was not applicable to the negative list of industries given under the scheme in annexure I of the scheme (consisting of a limited number of industries). For the purpose of determination of types and quantum of incentive available under this Scheme for the approved projects, the State was classified in the following groups based on their location: Group A Kolkata Municipal Corporation. Group B North 24 Parganas, South 24 Parganas (excluding the area under the jurisdiction of the Kolkata Municipal Corporation), Howrah, Hooghly, Bardhaman, Nadia and Purba Medinipur districts. Group C Murshidabad, Brigham, Purulia, Bankura, Malda, Coochbehar, Uttar Dinajpur, Dakshin Dinajpur, Jalpaiguri, Darjeeling and Paschim Medinipur districts. 7. Subsidy per unit or in cases where the same is not possible, the total amount or the annual amount budgeted for that subsidy Quantum of subsidy varied depending on the type of the scheme and the location of the project. Further, there was no separate budgetary allocation available. 8. Duration of subsidy and or any other limits attached to it, including date of inception/ comment Scheme was available from to Statistical data permitting an assessment of the trade effects of the subsidy It is not possible to estimate what trade effects, if any, may result from this program. 6.2 West Bengal State Support for Industries Scheme, Title of subsidy West Bengal State Support for Industries Scheme, 2008

14 Period covered by the notification Financial year from to Policy objective and/or purpose of subsidy Policy objective was to extend certain support for large and medium industrial projects in the State of West Bengal and to give additional financial support for promotion of large and medium scale industries in the backward regions of the state. Various incentives under the scheme are: Interest subsidy: An eligible unit with investment under scale-1, for its approved project entitled to Interest Subsidy to the extent of 25% of the annual interest liability on the term loan borrowed from an FI for implementation of the approved project, subject to a limit of Rs. 150 lakh per year, depending on the location. Waiver of Electricity Duty: An eligible unit in Group 'B' & 'C' areas with investment under scale 1 for the approved project was entitled to waiver of electricity duty on the electricity consumed; provided, no such benefit was granted to any unit set up in the area under Group-'A' except to the extent provided in this Scheme. An eligible unit in Gr. 'D' area would avail 100% waiver from year-1 to Year-5 and thereafter, it would be 75% waiver from year-6 to Year-10. Industrial Promotion Assistance: Certain units eligible under the scheme were provided Industrial Promotion assistance in the form of value added tax paid by unit for previous year. Additional Incentives provided to certain sectors, incentives for leather units both in the tanning and manufacturing sectors on relocation accompanied with modernization. Details of the scheme is available at: 4. Background and authority of the subsidy The State Government had from time to time formulated State Industries Incentive Scheme for attracting investments in this state. Accordingly, the West Bengal Incentive Schemes 1993, 1999, 2000 and 2004 had been framed and was in force for a definite time period. Present incentive scheme 2008 was valid till The Directorate of Industries, West Bengal supervisions the scheme. The implementing authority is the Government of West Bengal Industrial Development Corporation. Disbursement of the entitlement was done by WBIDC Ltd. (which is a Corporation under the administrative control of C & I Department), after the unit commences commercial production. 5. Form of the subsidy (i.e. grant, tax, loan, concession) Exemption/Refund. 6. To whom and how subsidy is provided and how determined This scheme was available to all large and medium scale units to be set up in the state of West Bengal upon commencement of this scheme and also 'expansion of existing units'. All units that were not registered with the DI under any other incentive scheme of this government. Also the scheme was not applicable to those units that were registered for and had been sanctioned incentives under any previous scheme i.e. West Bengal Incentive Scheme Subsidy per unit or in cases where there is not possible, the total amount or the annual amount budgeted for that subsidy Details as stated under the heading "Policy objectives and/or purpose of subsidy". There is no specific budget for the scheme. 8. Duration of subsidy and or any other limits attached to it, including date of inception/ comment Entitlement was for the period to

15 Statistical data permitting an assessment of the trade effects of the subsidy It is not possible to estimate what trade effects, if any, may result from this program.