Investment Promotion Scheme (IPS): Environment Protection Infrastructure Subsidy

DBT (direct benefit transfer): No

Scheme open date: 2015-07-03

Categories: Business & Entrepreneurship

Sub-categories: Setting up / start-up / entrepreneurship

Target beneficiaries: Business Entity, Industries

Tags: Environment, MSMEs, Incentives, Entrepreneurship, Subsidy, Reimbursement, IPS, Infrastructure

• - ₹30,00,000/- or 25% of capital cost of setting up of facility, whichever is less

What is the role of the Chartered Engineer in this process?

A Chartered Engineer must verify and provide a completion report for the project, including a detailed statement of the actual expenditure incurred.

Can ongoing projects qualify for this incentive?

No, only projects that are started and completed during the Scheme period will be considered for assistance.

Can the cost of land be included in the project cost for the incentive?

No, land costs will not be considered under the cost of the project. Only the costs directly related to the environmental protection infrastructure are eligible.

What type of projects are considered for this incentive?

Projects related to the development of Environment Protection Infrastructure, excluding ZLD systems for industries where ZLD is mandated by PCC.

What should the project report include?

The project report should detail the proposed Environment Protection Infrastructure, including objectives, methodology, expected outcomes, and a detailed budget excluding land costs.

What expenses are eligible under the actual expenditure statement?

Eligible expenses include costs directly related to the development and implementation of the Environment Protection Infrastructure, excluding any land acquisition costs.

How can I confirm if my industry is mandated to set up ZLD by PCC?

You should consult the guidelines issued by the Pollution Control Committee or contact them directly to determine if your industry is mandated to set up ZLD.

Is there a deadline for submitting the completion report and expenditure statement?

Yes, the completion report and expenditure statement must be submitted within the Scheme period to be considered for assistance. Specific deadlines will be outlined in the Scheme guidelines.

Can multiple projects be submitted for incentives under this Scheme?

Yes, multiple projects can be submitted, provided each project meets the eligibility criteria and documentation requirements outlined in the Scheme.

How will the incentive amount be determined?

The incentive amount will be based on the actual expenditure incurred on the project, as verified by the Chartered Engineer's completion report, excluding any land costs.

What happens to the benefit of the incentive if a newly setup enterprise is sold or transferred to a new owner within the first five years of its establishment?

If a newly setup enterprise is sold or otherwise transferred to a new owner during the period of five years, the benefit of the incentive shall be available to such transferee or the new owner, only for the unexpired portion.

What is the definition of Expansion/ Diversification?

Expansion/Diversification means where an existing / New Enterprise increases its investment by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing Gross Fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme. Only one Expansion / Diversification will be eligible for assistance during the operative period of the Scheme.

What measures are in place to prevent misuse of the subsidy scheme?

Strict guidelines, documentation requirements, and verification procedures are in place to ensure that subsidies are availed by eligible enterprises for genuine purposes only.

What is the operative period of the scheme?

The operative period of scheme is from 20.05.2022 till 5 years that is 19.05.2027.

If an enterprise is established in 2023 and becomes eligible for the scheme what would be the time period in which benefits are applicable?

The enterprise can avail benefit commencing from date of production till 5 years even if that period falls beyond operative period.

How can an eligible unit apply to get the benefits of the scheme?

The eligible unit can apply by visiting single window portal website which is "swp.dddgov.in", and once page pops-up the user have to go to departments tab and select district industries tab under which the user have to click on apply for investment promotion scheme: 2022 to 2027.

• https://www.myscheme.gov.in/schemes/ips
• https://swp.dddgov.in/assets/pdf/Notification_IPS_2022_DNH_DD.pdf
• https://swp.dddgov.in/assets/pdf/FAQs_IPS_2022.pdf

• Guidelines
• FAQs