Central Sector Scheme for AYUSH Super Specialty Hospitals (3)

Central Sector Scheme for AYUSH Super Specialty Hospitals

Background Scheme for AYUSH Super Specialty Hospitals:

The Champion Services Sector Scheme for Medical Value Travel has been framed by Govt. of India to enhance Medical Tourism in the country especially in the field of Traditional System of Medicine, since the documentation/ record and focus on traditional system of medicine has been marginal or minimal till now. The initiative would not only promote and propagate Ayurveda, Yoga & other Traditional systems of medicine in India but also expected to increase foot fall of International patients/tourists/visitors in the country which in turn is likely to generate revenue in terms of foreign exchange for the country. The proposed scheme also intends for creating more opportunities for capacity building and skill development in Ayurveda, Yoga & other Traditional systems of medicine sector creating more AYUSH job opportunities and also nationwide authentic data generation in Ayurveda, Yoga & other Traditional systems of medicine sector.

Objective of the Scheme Scheme for AYUSH Super Specialty Hospitals:

To encourage private investors to invest in AYUSH sector through Establishment of World Class, State of the Art Super Specialty Hospitals/ Day Care Centres of the systems recognized under Indian Medicine Central Council (IMCC) Act, 1970 or Homeopathic Central Council (HCC) Act, 1973 for promoting export of medical value travel services including services supplied to foreign consumers in India by providing interest subsidy.

Eligibility Criteria:

  • Any Private Institution(s)/Hospital(s)/Investor(s)/Small and Medium Enterprises / organization (s) willing to Establish World Class, State of the Art, Super Speciality Hospitals/ Day Care Centres of the systems recognized under Indian Medicine Central Council (IMCC) Act, 1970 or Homoeopathic Central Council (HCC) Act, 1973.
  • The applicant Institution(s)/Hospital(s)/Investor(s) organization (s) should be registered under Societies Registration Act/ Trust/ Companies Act.
  • Preference would be given to ASU&H practitioners registered under IMCC Act, 1970 or HCC Act, 1973.
  • The scheme is applicable for the construction of new hospitals only.
  • Desirable: Experience in running healthcare facilities.

Implementation Zone:

The scheme will be implemented in Green Field Mode on Pan India basis.

 Funding Mechanism:

  • Small Industries Development Bank of India (SIDBI), would be roped in for facilitation of easy loans through identified Public Sector Banks (PSBs) to the applicant organization (s)/investor (s)/SMEs for a period not exceeding five years for availing interest subsidy component from M/o AYUSH for the establishment of AYUSH Super Specialty Hospitals/ Day Care Centers as requested by the applicants.
  • The quantum of financial support to be provided under this Scheme shall be in the form of Interest subsidy component in descending order i.e. 100% (1stYear), 70% (2ndYear), 50% (3rdYear), 40% (4thYear), and 20% (5thYear). Projects which are sanctioned and takes off in the 1st Year, 2nd year and 3rd year respectively of operation of the Scheme will avail Interest subsidy component as per details given below:
  • 1st Year: 100% (1stYear), 70% (2ndYear), 50% (3rdYear), 40% (4thYear), and 20%
  • (5thYear).
  • 2nd year: 100% (1stYear), 70% (2ndYear), 50% (3rdYear), 40% (4thYear).
  • 3rd year: 100% (1stYear), 70% (2ndYear), 50% (3rdYear).
  • Admissibility of interest subsidy vs. investment made by the Investor as given below                                                                                                                                                                            (Rs. In Cr.)
SNOActivityTotal No. of Hospitals/ Day care centre to be supportedTotal estimated upper cap construction (including equipments and Machinery) cost as per scheme guidelinesContribution to be made by the investorActual loan to be considered for interest subsidy  Maximum interest subsidy admissible as per scheme guidelines
1234567
150 bedded hospitals20Rs.50.00Rs.16.66Rs.33.33Rs. 08.15
210 bedded hospitals61Rs.15.00Rs.05.00Rs.10.00Rs. 02.45
3Day Care Centres74Rs.06.00Rs.02.00Rs.04.00Rs. 00.98

N.B. Investors are free to invest beyond the upper cap limit as mentioned in col. 3. However, Government will consider the payment of interest subsidy on actual loan to be considered as per col. 5, further subject to payment of interest subsidy as per actual loan raised by the investor, whichever is less. In any case, maximum interest subsidy admissible as per scheme guidelines shall not exceed the limit as mentioned in col. 7 of the table above. The maximum Rate of Interest admissible to get Interest subsidy shall be capped at 9% per annum or as per actual whichever is less.

  • Interest subsidy will be provided by the Ministry of AYUSH directly to financial institution/ bank through SIDBI after confirmation by the bank to M/o AYUSH about the successful progress/completion of the project as per Construction Linked Plan CLP) /submission of requisite documents and payment of EMI by the applicant on pre-defined Terms of Reference (ToR).

Ministry of AYUSH would sign an Agreement/ Memorandum of Understanding (MoU) with SIDBI for proper execution of the scheme.

Government Subsidy For Greenhouse

Subsidy For greenhouse

Greenhouse farming systems incorporate farming activities related to floriculture and horticulture Greenhouse farming systems integrate floriculture and horticulture agricultural activities. Setting up a greenhouse facility will necessitate a significant cash commitment as well as prior planning. Apart from the establishment of the primary facility, there are various other components that require money and financial assistance in order to work as a whole system.-Subsidy for greenhouse

Subsidies available from the Govt. for greenhouse development in India:

Under Govt. Boards and schemes, agriculture subsidies are provided in our country. Likewise, for Greenhouse based farming, there are several subsidies provided under different schemes by different boards. The provided subsidies are either in the form of soft loans or back-ended subsidies on the total cost of the project. Because agriculture is the dominant sector of our country, even bank loans are offered for agricultural purposes under minimum interest rates.

Crops eligible:

a. Flowers: Anthurium, Orchids, Rose, Lilium, Chrysanthemum, Carnation and Gerbera. b. Vegetables: High value vegetables: Capsicum, Cucumber, Tomato

Pattern of assistance

Credit linked back-ended subsidy @ 50% of the total project cost limited to Rs 56.00 lakh per project as per admissible cost norms for green houses.

Maximum Project costs allowed for subsidy calculation

Green House structure
Fan & Pad systemRs. 1400/Sqm and Rs. 1610/Sqm for hilly states50% of cost for above 2500 Sqm
Naturally ventilated system  
i) Tubular structureRs. 844/Sqm and Rs.970/Sqm for hilly states50% of cost for above 2500 Sqm
ii) Wooden structureRs. 540/Sqm and Rs. 621/Sqm for hilly states50% of cost for above 2500 Sqm
iii) Bamboo structureRs. 450/Sqm and Rs. 518/Sqm for hilly states50% of cost for above 2500 Sqm
_Production Linked Incentive (PLI) scheme for drones

Applications under the Production Linked Incentive (PLI) Scheme

PLI application for KSMs and APIs

Department of Pharmaceuticals had issued guidelines for the Production Linked Incentive (PLI) Scheme for Promotion of Domestic Manufacturing of critical Key Starting Materials (KSMs)/Drug Intermediates and Active Pharmaceuticals Ingredients (APIs) in the Country on 29th October 2020. Applications were invited under the Scheme which have already been appraised and selected.- PLI application for KSMs and APIs-PLI in food processing

The Department further invites applications from eligible applicants under the Scheme
for the left over slots/quantity for the following eligible products:-

Target SegmentName of Eligible
Product
Minimum
Annual
Production
Capacity as
per Scheme
Guidelines (in
MT)
Shortfall in
Minimum
Annual
Production
Capacity (in
MT)
Maximum
no. of
applicants
to be
selected
Key Fermentation
based KSMs/Drug
Intermediates
Erythromycin
Thiocynate
(TIOC)
8001,600 MT2
7 – ACA10001,000 MT1
Fermentation based
niche KSMs/Drug
Intermediates /APIs
Neomycin80160 MT2
Gentamycin4080 MT2
Vitamin B1200200 MT1
Clindamycin
Bas
60120 MT2
Streptomycin50100 MT2
Tetracycline200400 MT2
Key Chemical
Synthesis based
KSMs/Drug
Intermediates
Dicyandiamide
(DCDA)
800032,000 MT4
2-MNI8003200 MT4

The last date for filing of the application is 45 days from the issuance of the Notice.

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BUDGET 2022 MSME

Micro, Small & Medium Enterprises (MSMEs) contribute enormously to the economic and social evolution of the country by promoting entrepreneurship and generating employment opportunities. The Union Budget 2022-23 highlights the MSME sector, a vital sector that makes up for about 45 per cent of the country’s total manufacturing output, 40 per cent of exports, and almost 30 per cent of the national GDP.

BUDGET COVERS FOLLOWING POINTS REGARDING MSME

Udyam, e-Shram, National Career Service (NCS) and Aatamanirbhar Skilled Employee Employer Mapping (ASEEM) portals will be interlinked, and their spectrum will be broadened.

 They will now serve as portals with live, organic databases, delivering G2C, B2C, and B2B services.

 These services will relate to credit facilitation, skilling, and recruitment to formalise the economy and improve entrepreneurial opportunities

Emergency Credit Line Guarantee Scheme (ECLGS) has delivered much required additional credit to more than 130 lakh MSMEs.

 This has allowed them to mitigate the unfavourable influence of the pandemic. The hospitality and corresponding services, especially those by Micro and Small Enterprises (MSEs), are yet to regain their pre-pandemic business level.

Regarding these factors, the ECLGS will be extended up to March 2023, and INR 50,000 crores will expand its guarantee cover to a total of INR 5 lakh crore, with the additional amount reserved exclusively for hospitality-related enterprise

Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with funds infusion.

 This will stimulate additional credit of INR 2 lakh crore for MSEs and boost employment opportunities.

Raising and Accelerating MSME Performance (RAMP) programme with an outlay of INR 6,000 crore over five years will be rolled out.

This will enable the MSME sector to become more resilient, competitive and efficient.

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Cabinet approves implementation of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) for 2021-26

Objective

The main objective of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) the fund shall be to facilitate the States in mobilising the resources for expanding coverage of Micro Irrigation by taking up special and innovative projects and also for incentivising micro irrigation beyond the provisions available under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)-PDMC to encourage farmers to install micro irrigation systems

Key highlights

  • Outlay of Rs. 93,068 crore, including Rs.37,454 crore central assistance to States
  • Benefit to about 22 lakh farmers, including 2.5 lakh SC and 2 lakh ST farmers90% grant to two National Projects- Renukaji (Himachal Pradesh) andLakhwar (Uttarakhand) -critical for water supply to Delhi and also to other participating States (Himachal Pradesh, Uttarakhand, UP, Haryana and Rajasthan) and for rejuvenation of river Yamuna
  • Additional irrigation potential of 13.88 lakh hectare under Accelerated Irrigation Benefit Programme (AIBP)New projects included under AIBP Focused completion of 60 ongoing projects30.23 lakh hectare of command area development works
  • Under ‘Har Khet Ko Pani’, 4.5 lakh hectare irrigation through surface minor irrigation and rejuvenation of water bodies, and 1.52 lakh hectare ground water irrigation in suitable blocks
  • Completion of watershed projects covering 49.5 lakh hectare rainfed/degraded lands to bring additional 2.5 lakh hectar
  • Central funding of 90% of water component for two national projects, namely Renukaji Dam Project (Himachal Pradesh) and Lakhwar Multipurpose Project (Uttarakhand) has been provisioned.
  • The two projects would provide beginning of storage in Yamuna basin benefitting six states of upper Yamuna basin, augmenting water supply to Delhi as well Himachal Pradesh, Uttarakhand, UP, Haryana, and Rajasthan and a major step towards rejuvenation of Yamuna.

Har Khet Ko Pani (HKKP) aims for enhancement of physical access on the farm and expansion of cultivable area under assured irrigation.

Under HKKP, surface minor irrigation and repair-renovation-restoration of water bodies component of PMKSY is targeted to provide additional 4.5 lakh hectare irrigation.

 In view of importance of rejuvenation of water bodies, the Cabinet has approved a paradigm shift in funding of their rejuvenation in both urban and rural areas, with significant expansion of their inclusion criteria, and enhancement of central assistance from 25% to 60% in general area.

Further, Ground Water component of HKKP, approved provisionally for 2021-22, targets creation of irrigation potential of 1.52 lakh hectare.

Watershed Development component focuses on development of rainfed areas towards soil and water conservation, regeneration of ground water, arresting runoff and promoting extension activities related to water harvesting and management.

The approved Watershed Development component of Department of Land Resources envisages completion of sanctioned projects covering 49.5 lakh hectare rainfed/ degraded lands to bring additional 2.5 lakh hectare under protective irrigation, during 2021-26.

A specific provision for development of springsheds has been included in the program.

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Union Budget 2022

The Union Budget 2022 seeks to complement macro-economic level growth with a focus on micro-economic level all inclusive welfare. The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman tabled the Union Budget 2022-23 in Parliament today.

The key highlights of the budget are as follows:

PART A

  • India’s economic growth estimated at 9.2% to be the highest among all large economies.
  • 60 lakh new jobs to be created under the productivity linked incentive scheme in 14 sectors.
  • PLI Schemes have the potential to create an additional production of Rs 30 lakh crore.
  • Entering Amrit Kaal, the 25 year long lead up to India @100, the budget provides impetus for growth along four priorities:
  • PM GatiShakti
  • Inclusive Development
  • Productivity Enhancement & Investment, Sunrise opportunities, Energy Transition,     and Climate Action.
  • Financing of investments

PM GatiShakti

  • The seven engines that drive PM GatiShakti are Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure.

PM GatiShkati National Master Plan

  • The scope of PM GatiShakti National Master Plan will encompass the seven engines for economic transformation, seamless multimodal connectivity and logistics efficiency.
  • The projects pertaining to these 7 engines in the National Infrastructure Pipeline will be aligned with PM GatiShakti framework.

Road Transport

  • National Highways Network to be expanded by 25000 Km in 2022-23.
  • Rs 20000 Crore to be mobilized for National Highways Network expansion.

Multimodal Logistics Parks

  • Contracts to be awarded through PPP mode in 2022-23 for implementation of Multimodal Logistics Parks at four locations.

Railways

  • One Station One Product concept to help local businesses & supply chains.
  • 2000 Km of railway network to be brought under Kavach, the indigenous world class technology and capacity augmentation in 2022-23.
  • 400 new generation Vande Bharat Trains to be manufactured during the next three years.
  • 100 PM GatiShakti Cargo terminals for multimodal logistics to be developed during the next three years.

Parvatmala

  • National Ropeways Development Program, Parvatmala to be taken up on PPP mode.
  • Contracts to be awarded in 2022-23 for 8 ropeway projects of 60 Km length.

Inclusive Development

Agriculture

  • Rs. 2.37 lakh crore direct payment to 1.63 crore farmers for procurement of wheat and paddy.
  • Chemical free Natural farming to be promoted throughout the county. Initial focus is on farmer’s lands in 5 Km wide corridors along river Ganga.
  • NABARD to facilitate fund with blended capital to finance startups for agriculture & rural enterprise.
  • ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides and nutrients.

Ken Betwa project

  • 1400 crore outlay for implementation of the Ken – Betwa link project.
  • 9.08 lakh hectares of farmers’ lands to receive irrigation benefits by Ken-Betwa link project.

MSME

  • Udyam, e-shram, NCS and ASEEM portals to be interlinked.
  • 130 lakh MSMEs provided additional credit under Emergency Credit Linked Guarantee Scheme (ECLGS)
  • ECLGS to be extended up to March 2023.
  • Guarantee cover under ECLGS to be expanded by Rs 50000 Crore to total cover of Rs 5 Lakh Crore.
  • Rs 2 lakh Crore additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).
  • Raising and Accelerating MSME performance (RAMP) programme with outlay of Rs 6000 Crore to be rolled out.


Skill Development

  • Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through on-line training.

· Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service (DrAAS).

Education

  • One class-One TV channel’ programme of PM eVIDYA to be expanded to 200 TV channels.

· Virtual labs and skilling e-labs to be set up to promote critical thinking skills and simulated learning environment.

  • High-quality e-content will be developed for delivery through Digital Teachers.
  • · Digital University for world-class quality universal education with personalised learning experience to be established.

Health

  • An open platform for National Digital Health Ecosystem to be rolled out.
  • ·National Tele Mental Health Programme’ for quality mental health counselling and care services to be launched.
  • A network of 23 tele-mental health centres of excellence will be set up, with NIMHANS being the nodal centre and International Institute of Information Technology-Bangalore (IIITB) providing technology support.

Saksham Anganwadi

  • Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.
  • Two lakh anganwadis to be upgraded to Saksham Anganwadis.

Har Ghar, Nal Se Jal

  • Rs. 60,000 crore allocated to cover 3.8 crore households in 2022-23 under Har Ghar, Nal se Jal.

Housing for All

  • Rs. 48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana.

Prime Minister’s Development Initiative for North-East Region (PM-DevINE)

  •  New scheme PM-DevINE launched to fund infrastructure and social development projects in the North-East.
  • An initial allocation of Rs. 1,500 crore made to enable livelihood activities for youth and women under the scheme.

Vibrant Villages Programme

  • Vibrant Villages Programme for development of Border villages with sparse population, limited connectivity and infrastructure on the northern border.

Banking

  • 100 per cent of 1.5 lakh post offices to come on the core banking system.
  • Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75 districts.

e-Passport

  • e-Passports with embedded chip and futuristic technology to be rolled out.

Urban Planning

  • Modernization of building byelaws, Town Planning Schemes (TPS), and Transit Oriented Development (TOD) will be implemented.
  • Battery swapping policy to be brought out for setting up charging stations at scale in urban areas.

Land Records Management

  • Unique Land Parcel Identification Number for IT-based management of land records.

Accelerated Corporate Exit

  • Centre for Processing Accelerated Corporate Exit (C-PACE) to be established for speedy winding-up of companies.

AVGC Promotion Task Force

  • An animation, visual effects, gaming, and comic (AVGC) promotion task force to be set-up to realize the potential of this sector.

Telecom Sector

  • Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive Scheme.

Export Promotion

  • Special Economic Zones Act to be replaced with a new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’.

AtmaNirbharta in Defence:

  • 68% of capital procurement budget earmarked for domestic industry in 2022-23, up from 58% in 2021-22.

· Defence R&D to be opened up for industry, startups and academia with 25% of defence R&D budget earmarked.

· Independent nodal umbrella body to be set up for meeting testing and certification requirements.

Sunrise Opportunities

  • Government contribution to be provided for R&D in Sunrise Opportunities like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems.

Energy Transition and Climate Action:

  • Additional allocation of Rs. 19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030.

· Five to seven per cent biomass pellets to be co-fired in thermal power plants:

  •  
  • CO2 savings of 38 MMT annually,
  • Extra income to farmers and job opportunities to locals,
  • Help avoid stubble burning in agriculture fields.

· Four pilot projects to be set up for coal gasification and conversion of coal into chemicals for the industry

· Financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry.

Public Capital Investment:

  • Public investment to continue to pump-prime private investment and demand in 2022-23.
  • Outlay for capital expenditure stepped up sharply by 35.4% to Rs. 7.50 lakh crore in 2022-23 from Rs. 5.54 lakh crore in the current year.
  • Outlay in 2022-23 to be 2.9% of GDP.
  • ‘Effective Capital Expenditure’ of Central Government estimated at Rs. 10.68 lakh crore in 2022-23, which is about 4.1% of GDP.

GIFT-IFSC

  • World-class foreign universities and institutions to be allowed in the GIFT City.
  • An International Arbitration Centre to be set up for timely settlement of disputes under international jurisprudence.

Mobilising Resources

  • Data Centres and Energy Storage Systems to be given infrastructure status.

· Venture Capital and Private Equity invested more than Rs. 5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystem. Measures to be taken to help scale up this investment.

· Blended funds to be promoted for sunrise sectors.

· Sovereign Green Bonds to be issued for mobilizing resources for green infrastructure.

Digital Rupee

  • Introduction of Digital Rupee by the Reserve Bank of India starting 2022-23.

Providing Greater Fiscal Space to States

  • Enhanced outlay for ‘Scheme for Financial Assistance to States for Capital Investment’:
    • From Rs. 10,000 crore in Budget Estimates to Rs. 15,000 crore in Revised Estimates for current year
  • Allocation of  Rs. 1 lakh crore in 2022-23 to assist the states in catalysing overall investments in the economy: fifty-year interest free loans, over and above normal borrowings
  • In 2022-23, States will be allowed a fiscal deficit of 4% of GSDP, of which 0.5% will be tied to power sector reforms

Fiscal Management

  • Budget Estimates 2021-22: Rs. 34.83 lakh crore
  • Revised Estimates 2021-22: Rs. 37.70 lakh crore
  • Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore
  •  Total receipts other than borrowings in 2022-23 estimated at Rs. 22.84 lakh crore
  • Fiscal deficit in current year: 6.9% of GDP (against 6.8% in Budget Estimates
  • Fiscal deficit in 2022-23 estimated at 6.4% of GDP

PART B

DIRECT TAXES

To take forward the policy of stable and predictable tax regime:

  • Vision to establish a trustworthy tax regime.
  • To further simplify tax system and reduce litigation.

Introducing new ‘Updated return’

  • Provision to file an Updated Return on payment of additional tax.
  • Will enable the assessee to declare income missed out earlier.
  • Can be filed within two years from the end of the relevant assessment year.

Cooperative societies

  • Alternate Minimum Tax paid by cooperatives brought down from 18.5 per cent to 15 per cent.
  • To provide a level playing field between cooperative societies and companies.
  • Surcharge on cooperative societies reduced from 12 per cent to 7 per cent for those having total income of more than Rs 1 crore and up to Rs 10 crores.

Tax relief to persons with disability

  • Payment of annuity and lump sum amount from insurance scheme to be allowed to differently abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardian attaining the age of 60 years.

Parity in National Pension Scheme Contribution

  • Tax deduction limit increased from 10 per cent to 14 per cent on employer’s contribution to the NPS account of State Government employees.
  • Brings them at par with central government employees.
  • Would help in enhancing social security benefits.

Incentives for Start-ups

  • Period of incorporation extended by one year, up to 31.03.2023 for eligible start-ups to avail tax benefit.
  • Previously the period of incorporation valid up to 31.03.2022.

Incentives under concessional tax regime

  • Last date for commencement of manufacturing or production under section 115BAB extended by one year i.e. from 31st March, 2023 to 31st March, 2024.

Scheme for taxation of virtual digital assets

  • Specific tax regime for virtual digital assets introduced.
  • Any income from transfer of any virtual digital asset to be taxed at the rate of 30 per cent.
  • No deduction in respect of any expenditure or allowance to be allowed while computing such income except cost of acquisition.
  • Loss from transfer of virtual digital asset cannot be set off against any other income.
  • To capture the transaction details, TDS to be provided on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.
  • Gift of virtual digital asset also to be taxed in the hands of the recipient.

Litigation Management

  • In cases where question of law is identical to the one pending in High Court or Supreme Court, the filing of appeal by the department shall be deferred till such question of law is decided by the court.
  • To greatly help in reducing repeated litigation between taxpayers and the department.

Tax incentives to IFSC

  • Subject to specified conditions, the following to be exempt from tax
    • Income of a non-resident from offshore derivative instruments.
    • Income from over the counter derivatives issued by an offshore banking unit.
    • Income from royalty and interest on account of lease of ship.
    • Income received from portfolio management services in IFSC.

Rationalization of Surcharge

  • Surcharge on AOPs (consortium formed to execute a contract) capped at 15 per cent.
  • Done to reduce the disparity in surcharge between individual companies and AOPs.
  • Surcharge on long term capital gains arising on transfer of any type of assets capped at 15 per cent.
  • To give a boost to the start up community.

Health and Education Cess

  • Any surcharge or cess on income and profits not allowable as business expenditure.

Deterrence against tax-evasion

  • No set off, of any loss to be allowed against undisclosed income detected during search and survey operations.

Rationalizing TDS Provisions

  • Benefits passed on to agents as business promotion strategy taxable in hands of agents.
  • Tax deduction provided to person giving benefits, if the aggregate value of such benefits exceeds Rs 20,000 during the financial year.

INDIRECT TAXES

Remarkable progress in GST 

  • GST revenues are buoyant despite the pandemic – Taxpayers deserve applause for this growth.

Special Economic Zones

  • Customs Administration of SEZs to be fully IT driven and function on the Customs National Portal – shall be implemented by 30th September 2022.

Customs Reforms and duty rate changes

  • Faceless Customs has been fully established. During Covid-19 pandemic, Customs formations have done exceptional frontline work against all odds displaying agility and purpose.

Project imports and capital goods

  • Gradually phasing out of the concessional rates in capital goods and project imports; and applying a moderate tariff of 7.5 percent   – conducive to the growth of domestic sector and ‘Make in India’.
  • Certain exemptions for advanced machineries that are not manufactured within the country shall continue.
  • A few exemptions introduced on inputs, like specialised castings, ball screw and linear motion guide – to encourage domestic manufacturing of capital goods.

Review of customs exemptions and tariff simplification

  • More than 350 exemption entries proposed to be gradually phased out, like exemption on certain agricultural produce, chemicals, fabrics, medical devices, & drugs and medicines for which sufficient domestic capacity exists.
  • Simplifying the Customs rate and tariff structure particularly for sectors like chemicals, textiles and metals and minimise disputes; Removal of exemption on items which are or can be manufactured in India and providing concessional duties on raw material that go into manufacturing of intermediate products – in line with the objective of ‘Make in India’ and ‘Atmanirbhar Bharat’.

Sector specific proposals

Electronics

  • Customs duty rates to be calibrated to provide a graded rate structure – to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters.
  •  Duty concessions to parts of transformer of mobile phone chargers and camera lens of mobile camera module and certain other items – To enable domestic manufacturing of high growth electronic items.

Gems and Jewellery

  • Customs duty on cut and polished diamonds and gemstones being reduced to 5 per cent; Nil customs duty to simply sawn diamond – To give a boost to the Gems and Jewellery sector

.

  • A simplified regulatory framework to be implemented by June this year – To facilitate export of jewellery through e-commerce.
  • Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import – To disincentivise import of undervalued imitation jewellery.

Chemicals

  • Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining being reduced; Duty is being raised on sodium cyanide for which adequate domestic capacity exists – This will help in enhancing domestic value addition.

MSME

  • Customs duty on umbrellas being raised to 20 per cent. Exemption to parts of umbrellas being withdrawn.
  • Exemption being rationalised on implements and tools for agri-sector which are manufactured in India
  • Customs duty exemption given to steel scrap last year extended for another year to provide relief to MSME secondary steel producers
  • Certain Anti- dumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked – to tackle prevailing high prices of metal in larger public interest.

Exports

  • To incentivise exports, exemptions being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes.
  • Duty being reduced on certain inputs required for shrimp aquaculture – to promote its exports.

Tariff measure to encourage blending of fuel

  • Unblended fuel to attract an additional differential excise duty of Rs 2/ litre from the 1st of October 2022 – to encourage blending of fuel.
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Schemes Guidelines For Pilot Phase To Setup Incubation Center For Apparel Manufacturing

Objectve

The main objective of Scheme is to create an integrated workspace and linkages_ based for entrepreneurial ecosystem for startup  that is operationally and viable and increase the chance of success ,and decrease the time and cost requires to start and grow  a new business. subsidy for Incubation Centers Schemes To Setup Incubation Centers For Apparel Manufacturing -msme incubation scheme

The  outcomes include

Promote entrepreneurship in apparel manufacturing.

Create additional manufacturing capacity.

Generate additional employment opportunities.

The target of the scheme is to establish 3 incubation centres in the period of 12th  Plan of Scheme.-msme incubation scheme

The Project

The Project is to establish an incubation facility in the textile parks. Each incubation centre shall have a maximum of 3 incubaees.

1- Incubates:

Incubates shall be identified and selected from the following category of individuals:

Degree/ Diploma holders of any discipline related to textile, apparel, fashion design etc.

 First generation entrepreneurs Design preneurs

Incubation Period:

The period for each Incubate shall be three years. It is envisaged

that during this period the entrepreneur shall have acquired the capability and skills to

independently operate his own venture.

Project Component

The eligible component of the Project are

Component A: Infrastructure Support

1- PLUG AND PLAY FACTORY BUILDING – READY TO USE PLUG AND PLAY FACTORY BUILDING WITH A TOTAL AREA ARE NOT EXCEEDING 45,000 sq ft @15,000 sq ft per incubate. which can either be spread over three levels (G+2) or over a single floor. This shall comprise of operations area, packing, office, store, workers amenities, display, etc.

 2- PLANT AND MACHNERY – : comprising of minimum 100 stitching machines along with ancillary machinery per incubate.

Component B: Capacity Building Support and Linkages

1- Training support for 200 workers per Incubatee. The training shall be carried

out for 3 months in accordance with the norms of the Integrated Skills

Development Scheme (ISDS) of the Ministry of Textiles

2- Training on Entrepreneurship Development to the incubatee for 1 month

3- Training on Product Design and Development services to the incubate

4- Support to Market Linkages though exposure visits by participation/visit 3

domestic exhibitions (atleast 1 per year) and a visit to an international fair.

The assistance provided by Ministry to support the capacity building and market linkages per Incubatee is enumerated below

SR NO.COMPONENTDURATION AND FEEPER INCUBATEE(IN LAKHS)
1Skill Development for workers3 month training for 200 workers @ Rs 10,000 per trainee20 LAKHS
2Market Linkages for incubatee3 domestic exhibition and 1 international exhibition5
3EDP Programme for incubateeI month training programme for Incubatee1
4Design service Per Incubatee5 lakhs5
 TOTAL 31 LAKHS

Grant Assistance and Release of Grant

ComponentGrant Assistance
Component I – Infrastructure100% grant – in – aid will be provided towards infrastructure support not exceeding Rs 4 cr per incubate and Rs. 12 cr per Incubation Centre
Component II Capacity Building Services and LinkagesI00% grant -in-aid towards Capacity Building Services and Linkages @ Rs 3l lacs (maximum) per incubatee

subsidy for Incubation Centers Schemes To Setup Incubation Centers For Apparel Manufacturing

_Production Linked Incentive (PLI) scheme for drones (1)

PM Mega Integrated Textile Region And Apparel (Pm Mitra) Parks Scheme

The scheme will develop integrated large scale and modern industrial infrastructure facility for total value-chain of the textile industry for example, spinning, weaving, processing, garmenting, textile manufacturing, processing & printing machinery industry. Pm Mega Integrated Textile scheme

PM MITRA Parks will be set up on the basis of proposals received from State Governments having ready availability of contiguous and encumbrance-free land parcel of minimum1000 acres.

Eligibility

SPV will be a legal entity (with 51% equity shareholding of State Government and 49% of Central Government) set up by the State Government for the purpose of implementing the PM MITRA Park Project.

The selection of PM MITRA Park sites will be done in a two stage selection process on Challenge Method.

Stage 1: Selection of Sites offered by State Governments through Challenge Route:

Stage 2 : Development of the Park

Funding & Release of Grant under PM MITRA Park Scheme by GOI

The Scheme has a budget outlay of Rs. 4445 Crore including administrative expenses of Rs 30 crore over 7-year period up to 2027-28.

Development Capital Support (DCS):

The Central Government will provide DCS in the form of Grant in Aid (Capital) to the Park SPV. DCS is a support for creation of Core Infrastructure e.g. Internal Road; Power Distribution Infrastructure; Water and Waste Water treatment and other facilities; Development of Plug & Play Infrastructure for Textiles Designers, Apparel Manufacturers, Accessories Manufacturers; Factory Sites; Incubation Centre etc. DCS can also be used for creating Support Infrastructure e.g. Common Processing Facility, Common Effluent Treatment Plant (CETP), Workers’ Hostel & Housing, (Specially for women Worker), Health Facility, Training & Skill Development, Warehousing, Logistics etc

The DCS will be provided in two Phases:

 Phase I – ₹ 300 Cr for Greenfield Park and ₹100 Cr for Brownfield Park, as per phasing of construction. Concession period will be 25 years till completion of Phase 1

 Phase II – ₹ 200 Cr for Greenfield Park and ₹100 Cr for Brownfield Park

Competitive Incentive Support (CIS):

For incentivizing manufacturing units to get established early in PM MITRA Park, there is a provision of ₹ 300 Cr per park.  Incentive will be provided to manufacturing units up to 3% of the total sales turnover to the unit established in the PM MITRA Park to reduce its cost and offset its disadvantages to a certain extent.

i. The CIS will be Fund Limited and it will be available on a first come first serve basis.

 ii. The incentives will only be available to those manufacturing companies who are not availing benefits of Production Linked Incentive (PLI) for Textile Scheme.

 iii. There will be a cap of ₹10 Crore per annum on incentive and a maximum cap of ₹30 Crore on incentive for one anchor investor company with an investment of ₹300 Crore or above in its unit in PM MITRA Park.

 iv. There will be a cap of ₹5 Crore per annum on incentive and a maximum cap of ₹15 Crore on incentive for one investor company with an investment of ₹100-300 Crore.

 v. There will be a cap of ₹1 Crore per annum on incentive and a maximum cap of ₹3 Crore on incentive for other investor companies and tenant companies, but they must have employment of 100 persons and above.

Pm Mega Integrated Textile scheme

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Subsidy For Grid Connected Rooftop Solar Programme

The key objectives of the Solar programme are


a. To promote subsidy for grid connected rooftop solar programme RTS in all consumer segments, viz., residential, institutional, social, Govt., commercial, industrial etc.


b. To bring DISCOMs at forefront as key drivers for rapid deployment of RTS.


c. To create awareness, capacity building, human resource development, etc.


d. To promote sustainable business models


. e. To create additional RTS capacity of 38000 MW in the country by 31.12.2022


out of which a capacity of 4000 MW in residential sector with Central Financial Assistance and 34000 MW in other sectors


(i.e., Social and Government and educational andPSUs, Statutory /Autonomous bodies, and Private Commercial

as well as, Industrial Sectors etc.) by suitably incentivizing DISCOMs f. To promote domestic manufacturing of solar cells and module..


COMPONENTS


Component A: Setting up of 4000 MW of grid connected rooftop solar projects in residential sector with Central Financial Assistance (CFA)

: In most of the States/UTs the residential sector enjoys benefit of subsidized electricity; therefore, beneficiaries of this sector would not be inclined to adopt rooftop solar until some capital CFA mechanism is put in place to reduce the cost of rooftop solar.


Further, considering the fact that lower consumption slab pays lower tariff and vice versa, the CFA for RTS is also required to be restructured.


Component B: Incentives to Electricity Distribution Companies (DISCOMs) based on achievement towards initial 18000 MW of grid connected rooftop solar plants 5.2.1


Since DISCOMs are required to incur additional expenditure for implementation of programme and in terms of additional man-power, creating infrastructure, capacity building, awareness, etc.,


these will be compensated by providing performance linked incentives. The incentives may be provided for each MWp capacity of solar rooftop, added by them in their distribution area over and above 10% of base capacity

installed at the end of previous year. However, such incentives will not be applicable with retrospective effect.

These incentives will be provided to enable DISCOMs to create an enabling ecosystem for expeditious implementation of RTS projects in their area.

S. NoParameterIncentive to be Provided
1For installed capacity achieved above 10 % and up to 15 % over and above of the install ed base capacity* within a financial year5% of the applicable cost** for capacit y achieved above 10 % of the installed base capacity
2For installed capacity achieved beyond 15 % over and above of the installed base capa city* within one financial year5% of the applicable cost** for capacit y achieved above 10 % and up to 15 % of the installed base capacity PLUS 10 % of the applicable cost** for capacity achieved beyond 15 % of the installed base capacity

The incentive mechanism has been illustrated in the following table

DiscomsInstalled base capacity (MW)Achievement under programme (MW)Percentage Achievement of installed base capacity (%)Capacity eligible for 5% incentives (MW)Capacity eligible for 10% incentives (MW)
A100 MW10 MW10%NilNil
B100 MW12 MW12%2MWNIL
C100 MW20 MW20%5 MW5 MW
D100 MW30 MW30%5 MW15 MW
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Production Linked Incentive (PLI) scheme for drones and drone components in India

PLI scheme for Drone

Objective

The objective of this s

PLI scheme for Drone is to incentivise manufacturing of drones and drone components in India so as to make them self-sustaining and globally competitive.

Eligibility

PLI scheme for Drone for all manufacturers of drones in India shall be eligible for this scheme subject to compliance with other requirements specified herein.

All manufacturers of the following drone components shall be eligible, subject to compliance with other requirements specified herein: 6 THE GAZETTE OF INDIA : EXTRAORDINARY

 a) Airframe, propulsion systems (engine and electric), power systems, batteries and associated components, launch and recovery systems;

 b) Inertial Measurement Unit, Inertial Navigation System, flight control module, ground control station and associated components;

 c) Communications systems (radio frequency, transponders, satellite-based etc.);

d) Cameras, sensors, spraying systems and related payload etc.;

e) ‘Detect and Avoid’ system, emergency recovery system, trackers etc. and other components critical for safety and security.

The list of eligible drones and drone components may be modified by the Central Government from time to time.

All manufacturers of drones and drone components whose annual sales turnover is above the following threshold shall be eligible for claiming PLI:

Minimum annual sales turnover for claiming PLI
Indian MSME and startupsIndian Non-MSME
Drone (INR Cr)Component (INR Cr)Drone (INR Cr)Component (INR Cr)
20.5 41

Computation of the incentive

  1. Eligible sales turnover is defined as the total sales turnover achieved in a financial year (net of GST) from the sale of drones and drone components as stated in such manufacturer’s GST returns.
  2. Eligible purchase cost is defined as the total cost (net of GST) incurred in a financial year for purchase of drones and drone components as stated in such manufacturer’s GST returns.
  3. Eligible value addition in India in a financial year shall be eligible sales turnover minus the eligible purchase cost as defined above.
  4. For ample clarity, developers of software for drones and drone components are also eligible for the PLI, subject to the eligibility norms and guidelines of this scheme.
  5. The PLI rate applicable to the eligible value addition in India shall be 20% for the entire tenure of the scheme.
Illustrative PLI calculation for a manufacturer (for sample year FY 2021-22)
Claim yearSales – Net of GST (INR cr)Purchase – Net of GST (INR cr)Eligible value addition in India (INR cr)PLI rate for value addition (%)Applicable PLI (INR cr)
FY 21-2210060 4020%8