MSME Policy of Arunachal Pradesh

Arunachal Pradesh

Arunachal Pradesh is the largest in dimension among all the other Northeastern States of India and is gifted with ample of natural assets or resources. These resources are in need of transformation to various goods and products for the sake of progress of the State and the people living in them. Possessing the possibilities of growth of industrial sector, Arunachal Pradesh have begun to emerge in its own way.

The Industrial Policy of the state has been composed in such a manner so that it does not harm the interest of the investors. Moreover, it should also facilitate maximum usage of raw materials which are locally available through the supporting infrastructure of suitable industrial units which will value rendering. The future investors and business owners will find the policy attention seeking enough to choose Arunachal Pradesh as their ideal destination for investment and trade.

Main Objectives

  • To produce an ‘investment-friendly’ surrounding in no other place but the State in the promotion of progress of industries in various domains like: private, joint venture and cooperative division for achieving sustainable development in the economy of the State.
  • To create ample of employment prospects and thereby making it the most favorable destination for various investors including the outsiders.
  • To endorse export related industrial units. This is because these types of units will persuade the local business owners to start business on various raw materials which are locally available.
  • To take initiatives to uphold handicrafts and handloom segment.
  • To make sure rapid tracking and clearance of industrial offers.

Eligibility Criteria

The entire industrial sectors/units/enterprises that are registered with ‘Directorate of Industries, Government of Arunachal Pradesh’ who comply with the underneath conditions are only eligible for the state incentive package offered by the Government:

  • The industrial sectors/units/enterprises have commenced their business after the policy came into effect.
  • The industries which are in operation and have adopted measures for extensive expansion, up-gradation and modernization to an extent of 25% of the original investment on various tools and machineries.
  • The existing sectors or domain which has not yet completed five years of its operation and manufacture from the date when the policy came into effect.


Incentive Schemes

The various incentive schemes as proposed by the Government are as follows:

  • Subsidy on costs incurred for FPR (Feasible Project Report)

A project must be entitled to payment of subsidies, especially made for the research of the project statement to any professional Advisors, Consultant and Agencies provided on the ground that the project report should be accepted and certified by any Commercial Bank or Financial Institutions in a maximum limit as laid down beneath:

  1. a) Micro Sector: 90% of the total cost, but not an amount exceeding Rs. 9000/-
  2. b) Small Sector: 75 % of the total cost, but not an amount exceeding Rs. 25,000/-
  3. c) Medium/Large Sector: 50% of the total cost but not an amount exceeding Rs.1, 00,000/-
  • Power Subsidies

The power subsidies will be synchronized as per the State Power Policy and NEIIPP 2007.

  • Quality Control Incentive Plan

The Department of Industries, Government of Arunachal Pradesh will be the primary section for all sorts of quality control of all sorts of industrial products available in the state.  The plan is also applicable for the products as informed via the union government from time to time.

Note: Maintaining quality of the goods put on by the industrialized units in the State. The State Government will provide subsidies for incurring the cost of quality testing tools acquire by the various industries as of renowned firms by 50% of the total cost of machineries and tools. In addition, the State Government will too compensate 100 % cost of the investigation that is sustained by the entire micro, medium and small enterprises with an upper limit of Rs.50,000/- only. Registration fee and Annual fee as per the ‘Bureau of Indian Standards’ and other standards will be repay in full amount for the initial five years.


  • Immunity to Stamp Duties

Permitted industrial sectors and ventures scheme will be excluded from imbursement of Stamp Duty for at least 80 percent of the appropriate sum in implementation of performance for tenure of 5 years.

  • Exceptional Incentives for Food Processing Industries

Special incentives will be offered to eligible FPU (Food Processing Units) as supplementary ‘State Capital Investment Subsidy’ at the rate of 20 % subject to a maximum limit of twenty five lakhs.

  • Liberalization of Licensing Policy

There will be no licensing necessities for industries which are saving as possibly will be offered by any law or other Government policy.

  • Institutional Credit Amenities

The financial department which is controlled by the State Government will be refurbished and the ‘District Industries Centers’ and other financial establishments will operate in a cycle to make sure easy flow of credit and money to fresh projects, existing industrial units for modernization or extension or diversification, village industries and rural artisans.

  • Enterprise and Skill Expansion:

The Government of Arunachal Pradesh will create all kind of hard work to expand entrepreneurship or ownership capability construction expansion of the local residents to assemble both technical and managerial] criteria of the industries. It also works towards achieving this goal.  The State Government will illustrate a complete skill upgradation course for ensuring that local workers or staffs increase the necessary ability to meet up skilled manpower in order to meet the necessity of the industries in alliance and discussion with diverse training and educational schools. This is primary objective so as to make the existing ‘Industrial Training Institutes’ will be promoted into a ‘Centre of Excellence’.

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