Incentive Scheme for Acquisition of Plants and Machinery .

The Incentive Scheme for Acquisition of Plants and Machinery (ISAPM) for Jute Industry and Jute Diversified Products Manufacturing Units is implemented by the National Jute Board (NJB).

Objectives

• To facilitate modernization in existing and new jute mills and upgradation of technology in existing jute mills.
• To provide assistance to a large number of entrepreneurs to manufacture value added biodegradable jute diversified products (JDP) as well as for modernization and upgradation of technology.
• to reduce operative cost through upgradation of Technology

Scheme Duration

The scheme was initiated in October, 2013. It is effective until 31st March, 2020.

Eligibility Criteria

• All existing jute mills manufacturing jute goods and new modern jute mills being established will be eligible to receive incentive under the scheme.
• Assistance under the scheme will also be available to any jute related entrepreneurs in the cottage / small scale / medium / large scale / cooperative / public sector / private sector, interested in production of value added diversified jute / jute blended items, jute based sanitary napkins, activated charcoal from jute sticks where jute and its components are dominant, by setting up new unit or adding to the existing capacity of the unit.

Types of Machinery / Equipment / Ancillary Items Eligible for Incentive

• All items of machinery identified under the Technology Upgradation Fund Scheme (TUFS) except conventional shuttle - loom, cop winding machine, softener machine, 5½” pitch V - Roller drafting spinning frame and second - hand imported machinery, along with list of other approved machinery as outlined in the scheme guidelines;
• Other items of machinery including stand - alone units, not covered under above and as may be approved by the Technical Committee and notified by NJB for the purpose of this scheme from time to time; Provided that all such machinery and equipment are new.

Incentive under the Scheme

• All eligible jute mills / JDP units under the scheme will be entitled to get incentive for procurement of the eligible items, for modernization, upgradation and / or establishing a new unit, on making an online application in the format prescribed for the purpose at www.jute.com. The incentive shall be 20% of the cost of identified plants and machinery procured by Jute Mills and 30% for Micro, Small and Medium Enterprises (MSME) JDP units (excluding GST, other Taxes and Duties).
• for modernization, upgradation and / or establishing a new unit, on making an online application in the format prescribed for the purpose at www.jute.com. The incentive shall be 20% of the cost of identified plants and machinery procured by Jute Mills and 30% for Micro, Small and Medium Enterprises (MSME) JDP units (excluding GST, other Taxes and Duties).
• The upper ceiling of the Incentive will be limited to Rs.2.50 crore (Rupees Two Crores Fifty Lakhs) per jute mill / jute diversified products units / new projects for the entire tenure of the Scheme.

For the complete operational guidelines and the application format, click here.

Source : National Jute Board

Related resources

1. Minimum Price List of equipments
2. Application for Claim of Incentive under ISAPM Scheme