RENEWABLE FUELS - Government Regulations
& Incentives
Subsidies available for plantation
of Jatropha Curcas and a Biodiesel Factory.
There are two parts to the project. Plantation part and industrial undertaking part. Subsidies available to each
part are different. In addition there are subsidies available from the Central Government and the State Government.
The various subsidies in relation to Chhattisgarh state are given below:
1. Plantation Subsidies: (One
project can avail of any one Central Subsidy) a. Central subsidy through
NOVOD (National Oilseeds and Vegetable Oils Development Board). Applicable to Corporate bodies and
individuals Maximum subsidy is Rs 25 lakhs for
companies and Rs 6.5 lakhs for individuals Credit arrangement has to be made
for this subsidy Subsidy is for raising a nursery and
for commercial plantation @Rs7500/hect in first year of planting and Rs.3600/hect for maintenance of plantation
in the 2nd to 5th year of planting Total cost of planting and maintenance
to maturity will be borne in the ratio of 20% promoter, 50% bank loan and 30% subsidy, subject to overall limit
b. Central Wasteland Development
Subsidy from Department of Wasteland development Applicable to land owned by Government,
individuals or Companies It is for development of non forest
wasteland Maximum subsidy is for Rs.25 lakhs Subsidy is upto 25% of project cost
where promoter's contribution is 25%. Balance can be borrowed Jatropha Curcas can be planted to
develop the wasteland
c. Where land is owned by Government
and government enters in partnership with companies for Watershed Area Development under Integrated Wasteland Development
Programme (IWDP) or Drought Prone Areas Programme (DPAP) then subsidy is available from the Central Department
of Land Resources for the specific approved project. This is available for promotion or
propagation of bio fuel plantations Recommended size of the project area
should be more than 5000 hectares Project implementation agency will
be the State Government The implementation can be done by
private parties in partnership with the Government Subsidy is Rs. 6000/hect payable in
5 annual installments in the ratio of 15%, 30%, 30%, 15% and 10%.
2. Subsidies for Setting up
Biodiesel factory payable by the Chhattisgarh Government.
a. Interest Subsidy on Term Loan and Working
Capital Loan for Medium/Large Industries 75% of total interest paid up to a maximum of Rs. 20 lakhs for
Special Thrust Industry for a period of 5 years in General area. The amount increases if industry is
set up in Most Backward Scheduled tribe dominated areas to Rs 40 lakhs per year for 7 years.
b. Infrastructure Costs/Fixed
capital Investment Subsidy for Medium/Large Industries 25% of the infrastructure cost for establishing General Industry
outside industrial areas for General Area. Maximum amount entitled will be equivalent to the amount of Commercial
tax/central sales tax paid to the state in a 5-year period. 35% of total Capital cost of the project
for Special Thrust Industries provided maximum entitled will be limited to the amount of commercial tax/central
sales tax paid to the state in a 7 year period
c. Electricity Duty Exemption
for Medium/Large Industries Total exemption for a period of 10 years for General Industry
from the date of commencement of commercial production for General Area Total exemption for a period of 15
years for Special Thrust Industries from the date of commencement of commercial production for General Area For Most Backward scheduled tribe
dominated areas this increase to 15 years in both categories of industries.
d. Exemption from excise duty Stamp Duty is exempt fully for setting up specified medium/large
industries Exemption is on deeds executed for
purchase of land, shed and buildings for setting up an industrial unit Exemption is also on deeds executed
for securing loans and advances to be taken by the industrial unit within 3 years of registration of the unit
e. Exemption from Entry tax Exemption will be computed from the
date of commercial production or the date of availing exemption for the first time, whichever is earlier Exemption is for a period of 5 years
for General Industries in General Area and 7 years for Special Thrust Industries in General areas For Most backward scheduled tribe
dominated areas the period increases in both categories
f. There are some other minor subsidies
being offered by the Chhattisgarh Government Exemption /Concession in the Premium
of Land Allotted in Industrial Area Concession on Service charges for
Allotment of Land outside Industrial area Quality Certification Subsidy Technical patent Subsidy
3. The subsidies offered by
the Chhattisgarh Government is announced under their Industrial Policy valid for the period 2004 - 2009.Thus commercial
production of the Industrial projects has to commence by 31.03.2009
Applicable to Corporate bodies and
individuals