NORTH-EASTERN STATES

Notification of Coordination Committee on Industrialisation

Industrial Policy for the North-East, 1997

Comprehensive Insurance Policy for Industrial Unit in NE Region

Tentative List of Agro-Forest and Gas-based Industries Appropriate for Development in the North Eastern Regions

SSI schemes for North-Eastern States

  • Transport Subsidy Scheme
  • Notifications No F. 6(26)/ 71-IC dated 23.7.1971
  • Gazette Notifications No 11(1)/98-dba II. 20 January, 1998
  • Ministry of Industry Notification No. 6(1)/DBA-II. 1st June, 1998
  • Ministry of Industry Notification No.6 (2)/98-DBA-II.18th February 1999
  • Ministry of Industry Notification No 17/1/98-DBA-I. 14th July, 1999


  • Coordination Committee Reports



    Transport Subsidy Scheme

    Objectives of the Scheme and its applicability:

    The Scheme is aimed to promote industrialisation in hilly, remote and inaccessible areas of the country given below. The Scheme is applicable to all the industrial units (barring plantations refineries and power generating units) irrespective of their size, both in public and private sector.

    Under the Scheme, subsidy ranging between 50% to 90% is admissible on transportation cost incurred by an entrepreneur on the movement of raw materials and finished goods from the designated rail-head/parts upto the location of industrial units and vice-versa for a period of five years from the date of commencement of commercial production.

    Duration of the Scheme:

    The Scheme was introduced in July, 1971 and has been extended from time to time, and is now valid upto 31.3.2007.

    Areas covered under the Scheme

    The North-Eastern comprising the States of Arunachal Pradesh. Assam, Manipur. Meghalaya, Mizoram, Nagaland and Tripura, as well as Jammu and Kashmir, Himachal Pradesh. Sikkim. Andaman & Nicobar Islands and Lakshadweep, eight hill Districts of Uttar Pradesh (Almora, Chamoli, Dehradun, Nainital, Pauri Garhwal, Pithoragar, Tehri Garhwal and Uttar Kashi), and Darjeeling District of West Bengal.

    Mode of disbursement:

    The Scheme works on disbursement/reimbursement basis i.e. the subsidy claims are first scrutinised and disbursed by the State Government to the eligible units on the basis of the recommendations of State Level Committee and reimbursement thereof is claimed thereafter from the Central Government.

    For the States in Notrh-Eastern region, North Eastern Development Finance Corporation Ltd. (NEDFi), has been designated as the disbursing agency for payment of subsidy to eligible units on the basis of recommendations of the State Level Committee. NEDFi has come into operation from May, 2000.

    Progress of the Scheme:

    Since inception till date (31.03.2001), Rs.616.77 crore of transport subsidy has been released to the State Governments which includes Rs.42.52 crores made available for disbursal through NEDFi. For the North-East Rs.337.53 crore have been released which constitutes 54.72% of the total releases.

    In December 1997 the Government announced a New Industrial Policy and Other Concessions for accelerating industrial development of the North-Eastern Region. The policy, inter alia, includes a provision for the following.

    I.  Central Capital Investment Subsidy Scheme (for N.E. Region)

    1. Notified in June 1998.
    2. Under the Scheme Subsidy @ 15% of the investment in plant and machinery subject to a maximum ceiling of Rs. 30 lakhs in admissible to the units to be set up in the identified locations.
    3. Rs. 2 crore has been provided for the Scheme in the Budget Estimates for the year 2000-2001. This amount of Rs.2.00 crore has been released to NEDFi for disbursal of Subsidy.
    4. NEDFi has reported an expenditure of Rs.26 lakhs under the Scheme during the year. The amount has been disbursed by them to 9 units in Tripura.

    II.  Central Interest Subsidy Scheme (for N.E.Region)

    1. Notified in February 1999.
    2. Under the Scheme subsidy @ 3% is payable to the industrial units on the working capital loans, for a period of ten years from the date of commencement of production.
    3. A provision of Rs.1.00 lakh has been made under the Scheme in the Budget Estimates for the year 2000-2001.
    4. No expenditure has so far been incurred under the Scheme.

    Both the schemes are valid for a period from 24.12.1997 to 31.3.2007.

    NEDFi has been designated as the disbursing agency for these Schemes. The modalities of functioning of the NEDFi has since been finalised.

    This Department has suggested to the Planing Commission to transfer these Scheme to the States along with funds.

    III.  Comprehensive Insurance Scheme, 1997 for industrial units in the North Eastern Region

    1. Notified in July 1999.
    2. Under the Scheme insurance premium paid by the eligible units is reimbursable through a revolving fund maintained by the nodal insurance company which is the National Insurance Company. All industrial units set up the North Eastern Region after 24.12.1997 and included in fire policy 'C' (as per All India Fire tariffs) are eligible for subsidy under the Scheme.
    3. Rs. 10 lakh has been provided for the Scheme in the Budget Estimates for the year 2000-2001. This amount of Rs. 10 lakh has bee released to National Insurance Company Ltd. as revolving fund for reimbursement of initial insurance premium to the eligible industrial units.

     

    Transport Subsidy Scheme

    Published in Part 1. Section 1 of the Gazette of India Extra-ordinary dated 27.7.1971 (No. 102) vide Notification No F. 6(26)/ 71-IC dated 23.7.1971 and amended vide Notification No. 6(26)/71-IC dated 28.2.1974 published in the part I. Section I of the Gazette of India Extra, ordinary dated 28.2.1974 (No 103) and Notification No. 6/3/15 RD dated 19.7.1978
    Notification No. 11/1/90 DBA-II dated 28.7.1993 and 29.09.1997.

    NOTIFICATION

    New Delhi, the 23rd July 1971

    No. F 6(26)/71-IC - The Government of India are pleased to make the following scheme for grant of subsidy on the transport of raw materials and finished goods to and from certain selected areas with a view to promoting growth of industries there: -

    1.  Short title - This Scheme may be called the Transport Subsidy Scheme 1971.

    2.  @ Commencement and duration: It comes into effect from 15.7.1971. For selected areas, (A) with effect from 24.8.1973 for selected areas (B) with effect from 1.12.1976 for selected areas (C) and with effect from 5.12.1977 for selected areas (D) and will remain in operation till 31.3.2000. The scheme shall, however, remain in operation till 31.3.2007. for the North Eastern Region.

    3. @ It is applicable to all industrial units (barring plantations, refineries and power generating units) both in the public and the private sectors, irrespective of their size in the selected areas (A), (B), (C) and (D).

    4. Definitions :-

    1. "Industrial Unit" means an industrial unit where a manufacturing programme is carried on.
    2. "New Industrial Unit" means an industrial unit, which has set up manufacturing of the Scheme.
    3. "Existing Industrial Unit" means an industrial unit, which has set up manufacturing capacity and came into production before the date of commencement of the Scheme.
    4. "Substantial expansion" means increase in production of an industrial unit by 25 per cent of more of the licenced or approved capacity.
    5. "Diversification" means manufacture of new article or articles by an industrial unit by 25 per cent or more (by value) of the approved or licensed capacity of the Article or Articles already manufactured by it during the preceeding year.
    6. Amended vide Notification No. 11(1/95.DBA-II dated 28.7.93 and dated 29.09.1997 and Notification No. 11(1)/98-DBA-II. Dated 29.01.1998.
    7. ** The Selected Areas (A) means the State of Jammu & Kashmir and the North-Eastern Region comprising the States of Assam, Meghalaya, Manipur, Nagaland and Tripura and the Union Territories of Arunachal Pradesh and Mizoram, the Selected Area (B) means the State of Himachal Pradesh and Hilly areas of Uttar Pradesh State comprising the districts of Dehradun, Nainital, Almora, Pauri Garhwal, Tehri Garhwal, Pithoragarh, Uttar KAshi and Chamoli, the Selected Areas (C) means the Union Territories of Andaman & Nicobar Islands and Lakshadweep, and teh Selected Areas (D) means the State of Sikkim.
    8. "Industrial Unit" means any raw material actually required and used by an industrial unit in its manufacturing programme as approved by the Government of India and/or by the Government of State/Union Territory in which the industrial unit is located.
    9. "Finished goods" means the goods acutally produced by an industrial unit in accordance with the manufacturing programme approved by the Government of India and/or the Government of the State/Union Territory in which the industrial unit is located.

    5.  %

    6.   Details of the scheme

    1. A transport subsidy will be given to the industrial units located in the selected areas in respect of raw materials which are brought into and finished goods which are taken out of such areas.
    2. @ Industrial units will not be eligible for the transport subsidy for internal movement of raw materials and finished goods within the State of Jammu & Kashmir, the North Eastern Region, the State of Himachal Pradesh, the hilly areas of Uttar Pradesh the Union Terriories of Andaman & Nimobar Islands and Lakshadweep and the State of Sikkim.
    3. @ In the case of Jammu & Kashmir, transport subsidy will be given on transport costs between the location of the industrial units and rail head of Jammu of Pathankot, whichever is nearer.
    4. In the case of Himachal Pradesh the transport subsidy will be given on the transport costs between the location of the industrial unit and the nearest railhead viz., (i) Pathankot (ii) Kitatput Sahib, (iii) Nangal, (iv) Kalka, (v) Ghanauli (v0) Yamuna Nagar (vii) Barara and (viii) Hoshiarpur

      In the case of hilly areas Uttar Pradesh State, the transport subsidy will be given on the transport costs between the location of the industrial units and the nearest railhead viz., (i) Dehradun (ii) Rishikesh (iii) Muradabad (iv) Bareily (v) Kotdwara (vi) Shahjahanpur and (vii) Rampur.

    5. In the case of North Eastern region comprising the States of Assam, Meghalaya Nagaland, Manipur, Trupura and the Union terriories of Arunachal Pradesh and Mizoram the transport subsidy will be given on the transport costs between Siliguri and the location of the industrial unit in these States/Union Territories. While calculating the transport roots of raw materials the cost of movement by rail from Siliguri to the railway station nearest to the location of the industrial unit will be taken into account. Similarly, while calculating the transport costs of finished goods the costs of movement by read from the location of industrial unit to the nearest railway station and thereafter the cost of movement by rail to Siliguri will be taken into account. In the case of North-Eastern region, for raw materials moving entirely by road or other mode of transport the transport costs will be limited to the amount which the industrial unit might have paid had the raw materials moved from Siliguri by rail upto the railway station nearest to he lication of the industrial unit and thereafter by road. Similarly in the case of movement of finished goods moving entirely by road or other mode of transport in the Notrh-Eastern region, the transport costs will be limited to the amount which the industrial unit might have paid had the finished goods moved from the location of the industrial units to the nearest railway station by road and thereafter by rail to Siliguri.
    6. & in the case of Andaman & Nicobar Islands, the transport subsidy will be given on transport costs by sea and road between Madras Port and the location of the industrial unit in the Union Territory. In the case of Lakshadweep, the transport subsidy will be given on transport costs by sea and road between Cochin Port and the location of the industrial unit in the Union Territory. If any other port on the mainland is used for the purpose of transport subsidy, the transport costs will be taken at the industrial unit would have incurred had Madres or Cochin Port, as the case may be, been used, or the actual transport costs, whichever are less.
    7. & In the case of Sikkim, the transport subsidy will be transport cross between the location of the industrial unit in the States and the railhead of Siliguri.
    8. +Freight charges for movement by road/sea will be determined on the basis of transport transshipment rates fixed by the Central Government/State Government Union Territory Administration concerned form time or the actual freight paid whichever is less.
    9. Costs of loading or unloading and other handling changes such as from railway station to the site of the industrial unit will not be taken into account for the purpose of determining transport costs.
    10. All New Industrial units located in the selected areas will be eligible for transport subsidy equivalent to 50 per cent or the transport costs of both raw materials as well as finished goods.
    11. Existing industrial units in the selected areas are also eligible for transport subsidy in respect of the additional transport costs of raw materials and finished goods arising as a result of substantial expansion or diversification effect by the them after the commencement of the Scheme. Transport Subsidy in such cases will be restricted to per cent of the transport costs of the substantial expansion or diversification.
    12. + Transport subsidy will also cover per cent of the transport charges for movement of steel from Gauhati Stockyard of M/s. Hindustan Steel Limited to the site of the industrial units in the North-Eastern region and for movement of industrial raw materials from the State Corporations depots situated in the hill districts of Uttar Pradesh to the sites of the Industrial units located in the hill districts of the State.
    13. * The State Government/Union Territory Administration will set up a committee consisting of the Director of Industries, a representative each of the State Industries Department and the State Finance Department etc, on which a representative of the Ministry of Industrial Development will also be nominated. The Committee will operate at the State/Union Territory. The claimants should be asked to provide proof of raw materials, imported' into and finished goods 'exported out of the selected States/Union Territory/areas where the unit is situated from the registered chartered accountants. The committee may also lay down the production claimant for the transport subsidy, however, in the case of small units with a capital investment of Rs. 1 lakh or less the requirement of production of certificate from Chartered Accountant may be waived subject to the condition that such claims are properly verified by the State Government authorities before the subsidy is sanctioned/disbursed. After having scrutinised an settled the claims, the amount disbursed to industrial unit should first be adjusted against the outstanding ways and means of advances made to the State Government Union Territory Administration for Centrally Sponsored Scheme in , dated accordance with the procedure outlined in the Ministry of Finance letter No 2(17) P11/58 dated 12..5.1958 and the balance if any shall be paid in cash to the State Government/union Territory administration.
    14. Provided that in the case of small units with a capital investment of Rs. 1,00,000 and less, the requirement of production of proof of import of raw material and export of finished products from registered Chartered Accountant will be substituted by an appropriate verification by the State Government authorities.

    15. In order to check any misuse of transport subsidy Directorate of Industries in the state/Union Territories will carry out periodical checks to ensure that the raw materials and the finished goods in respect of which transport subsidy has been given were actually used for the purpose by a system of scrutinising of consumption of the raw materials and the output of the finished goods.
    16. Directorate of Industries of the State and Union Territories concerned will draw up procedures and arrangements not only for scrutinising the claims for transport subsidy but also arrange for prompt payment of the claims. The number of transport subsidy claims that may be preferred by an industrial unit should not ordinarily exceed one in a quarter, the Director of industries may at his discretion entertain more number of claims in a financial year. If the financial position of the industrial unit so warrants.
    17. Directorates of Industries of the states and Union Territories concerned will lay down a system of pre-registration of industrial units, which are eligible for transport subsidy. At the time of registration the Directors of Industries will fix and indicate the capacity of such units. They will also lay down procedure to ensure regular inflow of information regarding movement of raw material and finished goods to and from the industrial units. The Directorate of Industries of the States and Union Territories should also lay down that statistics of production and utilisation of raw materials should be maintained and kept open for inspection on request by the Directorate of Industries.
    18. The Ministry of Industrial Development will continuously review the arrangements made by the Directorate of Industries of the concerned State and Union Territories and suggest modifications in the procedure for scrutinising the claim, payment of transport subsidy etc.
    19. Notwithstanding the provisions of the Scheme Government of India and/or the Government State/Union Territory concerned have full discretion to refuse to entertain or reject any claim for transport subsidy.
    1. * Any false statement made deliberately by an industrial unit or any mis representation of facts by it will disqualify it from the grant of transport subsidy for such period of time as the Government of India and/or the Government of State/Union territory concerned may decide after giving a reasonable opportunity to the industrial unit to state its case.

    FREIGHT FOR RAW MATERIAL (11)

    FREIGHT FOR FINISHED GOODS (12)

       

    Railway freight (Rs.)

    Road freight (Rs.)

    Total
    (Rs.)

    Railway freight
    (Rs.)

    Road freight
    (Rs.)

    Total
    (Rs.)

    Total of (11) & (12)

    Amount of subsidy earlier paid to the unit (Rs.)

       

    (13)

    (14)

     

     

         

    Subsidy entitled (50% - 90% of col.13)

    Whether the Unit is a new Unit under para 6(vii) & (viii) of the Transport Subsidy Scheme.

    Date of SLC meeting sanctioning the subsidy

    Date of disbursement of subsidy

    (15)

    (16)

    (17)

    18

    NAME OF STATE:

    STATEMENT OF CLAIM : REIMBURSEMENT OF TRANSPORT SUBIDY

    Name of the Unit and Capital investment of the unit.

    Complete address of

    (a) Office (b) Manufacturing Unit

    Status of the Unit (whether Proprietor/ Partnership etc.

    Name of Proprietor / partner etc.

    Date of Registration

    Date of commencement of production

    Road Transport rate fixed by the State Government per Quintal/kg/Meter (Rs.)

    (1)

    (2)

    (3-a)

    (4)

    (5)

    (6)

    (7)

    (8)

     

     

    RAW MATERIAL (9)

    S.No.

    Name

    Quantity in Qts

    Period

    From - To

    Distance from prescribed rail head (Siliguri, Jannu, Kalka, Dehradun to nearest rail-head) (in Kms.)

    Road movement, if any from the nearest rail-head to Unit (in Kms)

    Whether goods have moved by road only from the prescribed Railway Station to the Unit {if the answer is Yes' then claim to be limited to (e) & (f)

           

    (a)

    (b)

    (c)

    (d)

    (e)

    (f)

    (g)

     

    FINISHED GOODS (10)

    S. No.

    Name

    Quantity

    In Qtls.

    Period

    From - To

    Road movement, if any from the Unit to the nearest rail-head (distance in Kms.)

    Rail movement from the nearest railhead to the prescribed Station (Distance in Kms.)

    Whether goods have moved by road only from the Unit to the prescribed rail-head {if the answer is 'Yes' then claim to be limited to (e) & (f)

     

    (a)

    (b)

    (c)

    (d)

    (e)

    (f)

    (g)

     

    The Gazette of India Extraordinary

    (Part 1 Section 1)

    MINISTRY OF INDUSTRY

    (Department of Industrial Policy & Promotion)

    NOTIFICATION

    New Delhi the 29th January, 1998

    No 11(1)/98-dba II.The Central Government hereby makes the following further amendment in the Notification of the Government of India in the erstwhile Ministry of Industrial Development Notification No. 5/26/71. IC, dated 23rd July, 1971, namely the Transport Subsidy Scheme, 1971 as published in the Gazette of India Extraordinary Part 1, Section 1, dated 27th July, 1971 as amended from time to time: -

      1. In para 2 of the said Scheme under the heading "Commencement and Duration" the following shall be added at the end :-
      2. "The Scheme shall, however, remain in operation till 31st March, 2007 for the North-Eastern Region"

      3. In para 6 of the said Scheme after sub-para (xii a) the following sub-para (xii b) shall be inserted namely :-

    "The North East Development Financial Corporation (NEDFi) shall act as a nodal agency for release of transport subsidy on the basis of the recommendations of the State Level Committee, for the North East Region, as per existing terms & conditions of the said Scheme"

    SMT PRATIBHA KARAN, Jt. Secy.

     

     

     

    MINISTRY OF INDUSTRY

    (Department of Industrial Policy & Promotion)

    NOTIFICATION

    New Delhi, the 1st June, 1998

    F. No. 6(1)/DBA-II. The Government of India is pleased to make the following scheme of Central or Subsidy for industrial units in the North Eastern Region comprising the States of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura with a view to accelerating the industrial development in the region.

    1.   Short Title: - This scheme may be called the Central Capital Investment Subsidy Scheme, 1997.

    2.   Commencement and duration:- It will come into effect from the 24th December, 1997 and remain in force and inclusive of 31-3-2007.

    3.   Applicability:- The scheme is applicable to all industrial units in the Growth Centres approved for the North Eastern region and also to the new industrial units or their substantial expansion in other Growth centres or IIDC industrial estates/parks/export promotion zones set up by the States in the North Eastern region and new industrial units their substantial expansion in the specified industries (as at Annex. A) located outside these growth centres and identified locations.

    4.   Definitions:-

    1. 'Industrial unit' means any industrial undertaking, suitable servicing unit other than that run departmentally Government.
    2. 'New Industrial Unit' means an industrial unit for the setting up of which effective steps where not taken priority 24th December 1997.
    3. 'Existing Industrial Unit' means an industrial unit for the setting up of which effective steps were taken priority 24 December 1997.
    4. 'Substantial Expansion' means increase in the value of fixed capital investment in plant and machinery of industrial unit by not less than 33% for the purpose of expansion of capacity/modernisation etc.
    5. 'Effective steps' means one or more of the following steps:-
      1. that 10% or more of the capital issued for the industrial unit has been paid up.
      2. that any part of the factory building has been constructed.
      3. That firm order has been placed for any plant and machinery required for the industrial unit.

    6. 'Fixed Capital Investment' means investment in plant and machinery for the purpose of this scheme.

    5.   Extant of admissible subsidy

    All eligible industrial units located in the Growth Centres approved for North Eastern Region shall be given cap investment subsidy at the rate of 15% of their investment in respect of new units or additional investment in respect substantial expansion in plant and machinery subject to a maximum ceiling of Rs. 30 lakhs.

       5.1  Similar benefits would also be extended to the new industrial units or their substantial expansion in other Centres or IIDC or industrial estates/parks/export promotion zones set up by the States in the North Eastern Region industrial unit or their substantial expansion in the specified industries (As at Annexure 'A') located outside these growth centres and other identified locations would also be eligible for similar fiscal incentives.

    6.  Plant & Machinery

    In calculating the value of plant and machinery the cost of industrial plant and machinery as erected at site with taken into account which will include the cost of productive equipment, such as tools, jigs, dies and moulds, insurance premium etc.

       6(a)  The amount invested in goods carriers to the extent they are actually utilised for transport of raw materials marketing of the finished products will be taken into account.

       6(b)  Working capital including raw materials and other consumables stores, will be excluded for computing the value of plant and machinery.

    7.   Designated Agency for disbursement of subsidy

    North Eastern Development Financial Corporation (NEDFI) shall be the designated agency for disbursement of Capital Investment Subsidy on the basis of the recommendation of the concerned State Government.

    8.  Procedure for claiming Capital Investment Subsidy

    Industrial units eligible for subsidy under the scheme will get themselves registered with the State Department concerned prior to taking effective steps for setting up the new units or undertaking substantial expansion of the existing units an indicate their assessment of the total additional fixed capital likely to be invested by them in the plant and machinery of their unit. Such of the units as had taken effective a steops prior to the date of announcement of the scheme but afters 24-12-1997 will get themselves registered by 31-12-1998.

    9.   Procedure for disbursement of Capital Investment Subsidy

    Each State Government concerned will set up a Committee consisting of a representative each of the State Department concerned, the State Finance Department, State Directorate of Industries and if the industrial unit is to be assisted by a financial institution, the financial institution concerned, to go into each case to decide whether it should qualify for the grant of subsidy and also about the quantum of subsidy.

    10.   In respect of a new industrial unit set up without assistance from the financial institutions or the State Government concerned, the subsidy will be disbursed the unit by NEDFI on the recommendation of the State Government at the time the unit goes into production. Similarly, in respect of substantial expansion by an existing industrial unit without assistance from the financial institutions or the state Government concerned, the subsidy will be disbursed to the unit by NEDFI on the recommendation of the State Government concerned after substantial expansion has been effected and the unit has gone into production however, in such cases where the concerned State Government is satisfied about the safety of the public funds, not more than half of the amount of the estimated subsidy may be released prior to the unit going into production on the entrepreneur's furnishing a proof of having taken effective steps to the satisfaction of State director of Industries and the remaining amount be released only after the unit goes into production.

    11.  In respect of an industrial unit to be assisted by the State Government concerned, the subsidy will be disbursed to the unit by NEDFI on he recommendation of the State Government concerned. In such cases, the contract/agreement to be drawn up between the State Government and the unit concerned may cover mortgage, pledge, hypothecation of the assets of the unit upto the amount of the loan to be advanced by the financial institution concerned and the subsidy.

    12.  Rights of the Centre/State Government/Financial Institutions

    If the Central Government/State Government/Financial Institutions concerned is satisfied that the subsidy or grant to an industrial unit has been obtained by misrepresentation as to an essential fact, furnishing of false information or if the unit goes out of production within 5 years after commencement, the Central Government/State Government/Financial Institution concerned may ask the unit to refund the grant or subsidy after giving opportunity to the concerned to be heard.

    13.  Without taking prior approval of the Ministry of Industry, Department of Industrial Policy and Promotion/State Government/Financial Institution concerned, no owner of an industrial unit after receiving a part or the whole of the grant or subsidy will be allowed to change the location of the whole or any part of industrial unit or affect any substantial contraction or disposal of a substantial part of its total fixed capital investment within a period of 5 years after its going into production.

    14.  In respect of all units to whom the grant or subsidy is disbursed by the financial institution/State Government, certificate of utilization of the grant or subsidy for the purpose for which it was given shall be furnished to the Central Ministry of Industry, Department of Industrial Policy and Promotion by the financial institution/State Government concerned within a period of from the date of receipt of the last instalment/full anount.

    15.  After receiving the grant of subsidy, each industrial unit shall submit annual Progress report to the Ministry of Industry. Department of Industrial Policy and Promotion/State Government concerned, about its working for a period of 5 years after going into production.

     

    MRS. PRATIBHA KARAN, Jt. Secy.

     

    ANNEX-A

    Tentative List of Agro-Forest and Gas-based Industries Appropriate for Development in the North Eastern Regions

    1.   Fruit and Vegetable Processing

      1. Canned/Bottled Products
      2. Aseptic Packaged Products
      3. Frozen Products
      4. Dehydrated Products
      5. Oleoresins

    2.   Meat and Poultry Products

      1. Meat Products (buffalo, sheep, goat and pork)
      2. Poultry production
      3. Egg Power Plant

    3.   Cereal Based Products

      1. Maize Milling including starch and its derivatives
      2. Bread Biscuits, Break fast Cereals etc.

    4.   Consumer Industry

      1. Snacks
      2. Confectionery including Chocolate
      3. Pasta Products
      4. Processed Spices etc.
      5. Processed Pulses
      6. Tapioen Products

    5.   Milk and Milk-based Products

      1. Milk Power
      2. Cheese
      3. Butter/Ghee
      4. Infant Food
      5. Weaning Food
      6. Malted Milk Food

    6.   Food Packaging

    7.   Paper Products

    8.   Jute and Mesta Products

    9.   Cattle/Poultry/Fishery Feed Production

    10.   Oil Processing/Vanaspati

    11.   Essential Oils and Fragrances

    12.   Processing and Raising of Plantation Crops

      1. Tea, Rubber, Coffee Coconut etc.

    13.   Gas based Intermediate Products

      1. Gas exploration and Production
      2. Gas Distribution and Bolting
      3. Power Generation
      4. Plastics
      5. Yarn Raw Materials
      6. Fertilizers
      7. Methanol
      8. Formaldebycle and FR Resin Melamme and MF Resin
      9. Nitrate Acid and Ammonium Nitrate
      10. Carbon Black
      11. Polymer Chips

    14.   Agro Forestry

    15.   Horticulture

     

    MINISTRY OF INDUSTRY

    (Department of Industrial Policy & Promotion)

    NOTIFICATION

    New Delhi the 18th February 1999

    No.6 (2)/98-DBA-II.- The Government of India is pleased to make the following scheme of Interest Subsidy on the Working Capital Loans for industrial units in the North-Eastern Region comprising the States of Assam. Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura with a view to accelerating industrial development in the region.

    1.  Short title: This Scheme may be called the Central Interest Subsidy Scheme, 1997.

    2.  Commencement and duration: It will be effective from the 24th day of December 1997 and remain in force upto and inclusive of 31.03.2007.

    3.  Applicability: The Scheme is applicable to new industrial units or their substantial expansion in the Growth Centres or HDCs or HDCs or industrial estates/parks/export promotion zones set up by States in the North Eastern Region and new industrial units or their substantial expansion in the specified industries (as at Annexure-A) located outside these Growth Centres and other identified located.

    4.  Definitions:

    1. 'Industrial' Unit means any industrial undertaking, suitable servicing unit other than that run departmentally by Government of India/State Government;
    2. 'New Industrial Unit' means an industrial unit for the setting up of which effective steps were not taken prior to 24th December 1997;
    3. 'Existing Industrial Unit' means an industrial unit set-up prior to the operative date of the scheme i.e. 24th December 1997;
    4. 'Substantial Expansion' means increase in the value of fixed capital investment of an industrial unit by not less than 10% for the purpose of expansion of capacity/modernization and diversification; and
    5. 'Effective steps' means one or more of the following steps:-
      1. that 10% or more of the capital issued for the industrial unit has been paid up;
      2. that any part of the factory building has been constructed;
      3. that a firm order has been placed for any plant and machinery required for the industrial unit.

    6. 'Fixed Capital Investment' means investment in land, building an plant and machinery.

    Total fixed capital investment will be assessed as following:

      1. Land: The actual price paid for the land to the extent needed for the purposes of the plant Charges for the leased land will not be taken into account.
      2. Building: Same as in the case of land Rent of a hired building will not be taken into account.
      3. Plant and machinery:

      1. In calculating the value of plant and machinery, the cost of plant and machinery as erected at site will be taken into account which will include the cost of productive equipment, such as tools, jigs, dies and moulds; transport charges, insurance premium, etc. will also be taken into account.
      2. The amount invested on goods carriers to the extent they are actually utilised for transport of raw materials and marketing of the finished products will be taken into account.
      3. Working capital including raw materials and other consumable stores will be excluded for computing the value of plant and machinery.

    1. Fixed Capital: represents the depreciated value of fixed assets owned by the factory as on the closing day of the accounting year. Fixed assets are those which have a normal productive life of more than one year. Fixed capital covers all types of assets, new or used or own constructed, deployed for production, transportation, living or recreational facilities, hospitals, schools etc, for factory personnel. It includes the fixed assets of the head office allocable to the factory and also the full value of assets taken on hire purchase basis (whether fully paid or not) excluding interest element. It excludes intangible assets and assets solely used for post manufacturing activities such as sale, storage, distribution etc.
    2. Physical Working Capital: - is defined to include all physical inventories owned, held or controlled by the factory as on the closing day of the accounting year such as the materials, fuels and lubricants, stores etc., that enter into products manufactured by the factory itself or supplied by the factory to other for processing. Physical working capital also includes the stock of materials, fuels and stores etc., purchased expressely for re-sale, semi-finished goods and work in progress on account of others and goods made by the factory which are ready for sale at the end of the accounting year. However, it does not include the stock of the materials, fuels, stores, etc, supplied by others from raw materials supplied by the factory and held by them are included and finished goods processed by the factory from raw materials supplied by others are excluded.
    3. Working Capital is the sum total of the physical working capital as already defined above and the cash deposits in hand and at bank and the net balance of amount receivable over amounts payable at the end of the accounting year. Working capital, however, excludes unused overdraft facility, fixed deposits irrespective of duration, advances for acquisition of fixed assets, loans and advances by proprietors and partners irrespective of their purpose and duration, long-term loans including interest thereon and investments.

    5.  Extent of admissible subsidy:

    All eligible industrial units in the North Eastern Region shall be given an interest subsidy to the extent of 3% on the Working Capital advanced to them by the Scheduled Banks or Central/State financial institutions for a maximum period of 10 (ten) years from the date of commencement of production.

    6.  Norms for Working Capital calculation:

    For the purpose of this scheme, the minimum working capital requirement of a unit shall be worked out @ 25% of their annual turnover. Inventory norms may be applied, if necessary, after providing for aforesaid minimum level. In respect of such units for which norms have not been laid down/are not applicable (due to the units coming below the cut off point of Rs.10 lakhs of working capital), the request of working capital should be considered favourably so long as the working capital is not very much above such minimum level. Special norms can also be evolved for inventory and receivables. Working capital below the minimum level may be justified under special circumstances in which the requirement is demonstrably lower, as in the case of ancillary units in the small scale sector with assured supply of inputs and off-fake of output.

    7.  Designated Agency for disbursement of Subsidy:

    North Eastern Development Financial Corporation (NEDFI) shall be the designated agency for disbursement of interest subsidy on the basis of the recommendation of the concerned Stated Government.

    8.  Procedure for claiming Interest subsidy:

    Industrial units eligible for subsidy under the scheme will get themselves registered with the State Department concerned prior to taking effective steps for setting up the new units or undertaking substantial expansion of the existing units and indicate their assessment of the total working capital likely to be required for a unit. Such of the units as has taken effective steps on or after 24.12.1997 i.e. the date of announcement of the scheme will get themselves registered by 31.12.1999.

    9.  Procedure for disbursement of Interest Subsidy:

    Each State Government concerned will set up a State Level Committee consisting of a representative each of the State Department concerned the State Finance Department, State Directorate of Industries. NEDFI or its designated agency and the financial institution concerned, to go into each case to decide whether it qualifies for the grant of subsidy an also about the quantum of subsidy.

    10.  The subsidy will be disbursed to the unit by NEDFI on the recommendation of the State Level Committee/State Government concerned.

    11.  Rights of the Centre/State Government/Financial Institutions:

    If the Central Government/State Government/financial Institution concerned is satisfied that the subsidy or grant to an industrial unit has been obtained by misrepresentation of the essential facts, furnishing of false information or if the unit goes out of production within 2 years after having availed the subsidy under the scheme, the Central Government/State Government/Financial Institution concerned may ask the unit to refund the grant or subsidy after giving opportunity to the concerned to be heard.

    12.  Without taking prior approval of the Ministry of Industry, Department of Industrial Policy & Promotion/State Government/Financial Institution concerned, no owner of an industrial unit will be allowed to change the location of the whole or any part of the industrial unit will be allowed to change the location concerned, no owner of an industrial unit or effect any substantial contraction or disposal of a substantial part of its total fixed capital investment within a period of 2 years of receiving a part or the whole of the grant or subsidy under thescheme.

    13.  After receiving the grant of subsidy, each industrial unit shall submit annual progress report to the Ministry of Industry, Department of Industrial Policy and Promotion/State Government concerned, about its working for a period of 10 ears after going into production.

     

    SMT. PRATIBHA KARAN, Jt. Secy.

     

    MINISTRY OF INDUSTRY

    (Department of Industrial Policy and Promotion)

    NOTIFICATION

    New Delhi the 14th July, 1999

    No 17/1/98-DBA-I.- In purchase of Para E(ii) of the Ministry of Industry, Department of Industrial Policy & Promotion O.M. No. EA/1/2/96-IPD dated 24th December 1997, the Government of India is pleased to make the following Scheme of Comprehensive Insurance for industrial Units in the North Eastern Region comprising the States of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura with a view to accelerating industrial development in the region.

    1.   Short Title:- This scheme may be called Central Comprehensive Insurance Scheme, 1997

    2.   Commencement and Duration: It will be effective from the day of its publication and remain in force for 10 (ten) years.

    3.   Applicability: The Scheme is applicable to new Industrial Units set up in the North Eastern Region after 24 December 1997.

    4.   Definition of Industrial Unit: Any industry, which is included in Fire Policy 'C' as per All India Fire Tariffs.

    5.   Fixation of Sum Insured: The Policy shall be issued on market valuation by the Insurance Company.

    6.   Mode of Operation: The insured party shall pay the initial premium which shall be reimbursed by the nodal insurance company (National Insurance Corporation) out of the revolving fund maintained by that company. Funds for this revolving fund shall be contributed by Ministry of Industry, Department of Industrial Policy & Promotion.

    7.   The Insurance policy envisaged under the Scheme will be as indicated in Annexue-A.

     

    MRS. PRATIBHA KARAN, Jt Secy.

     

    ANNEXURE-A

    COMPREHENSIVE INSURANCE POLICY FOR INDUSTRIAL UNIT IN NORTH EAST REGION

     

         "IN CONSIDERATION OF the Insured named in the schedule hereto having paid to the ______________________ Insurance company Limited (hereinafter called the company) the premium mentioned in the said scheduled, THE COMPANY AGREES, (subject to the conditions and exclusions contained herein or endorsed or otherwise expressed hereon) that if after payment of the premium the property insured described in the said schedule or any part of such property be destroyed or damaged by the following:-

    1. Fire
    2. Lightning
    3. Explosion/Implosion but excluding loss of or damage


    4. (a) to boilers (other than domestic boilers), economizers or other vessels, machinery or apparatus in which steam is generated or their contents resulting from their own explosion/implosion,
      (b) caused by centrifugal force.

    5. Riot, Strike, Malicious, and terrorist Damage as per Riot, strike, Malicious and terrorist Damage clause printed hereon.
    6. Impact by any Rail/Road vehicle or animal.
    7. Aircraft and other aerial and/or space devices and/or articles dropped therefrom, excluding destruction or damage occasioned by pressure waves caused by such devices,
    8. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation.
    9. Subsidence and Landslide (including Rockslide) resulting in collapse of the entire building or part of.
    10. Earthquake Fire and Shock.

    During the period of insurance named in the said schedule or of any subsequent period in respect of which the insured shall have paid and the Company shall have accepted the premium required for the renewal of the policy, the Company will pay to the Insured the value of the Property at the time of the happening of its destruction or the amount of such damage or at its option reinstate or replace such Property or any part thereof.

    PROVIDED that the liability of the Company shall in no case exceed in respect of each item the sums expressed in the said Schedule to be insured thereon or in the whole the total sum insured hereby or such other sum or sums as may be substituted thereof by memorandum hereon or attached hereto signed by or on behalf of the company."

    RIOT, STRIKE, MALICIOUS AND TERRORIST DAMAGE CLAUSE

    This Policy covers Riot, Strike, Malicious and Terrorist Damage as under:-

    I.  Loss of or visible physical damage by external violent means to the property insured directly caused by:

    1. The act of any person taking part together with others in any disturbance of the public peace (whether in connection with a strike or lockout or not) not being an occurrence mentioned in exclusion 7(a), (b).
    2. The action of any lawfully constituted authority in suppressing or attempting to
    3. Suppress any such disturbance or in minimizing the consequence of any such disturbance.

    4. The willful act of any striker or locked out worker done in furtherance of strike or in resistance to a lock out resulting in visible physical damage by external violent means.
    5. The action of any lawfully constituted authority in preventing or attempting to prevent any such act or in minimising the consequences of any such act.
    6. Any malicious act but excluding any omission of any kind of any person (whether or not such act is committed in the course of a disturbance of public peace) provided that the Company shall not be liable for any loss or damage arising out of or in the course of burglary, housebreaking, theft or larceny or any attempt by any person taking part therein.

    II.   Loss of or Damage to the property insured by explosion or otherwise directly caused by:

    1. An act of terrorism committed by a person or persons acting on behalf of or in connection with any organisation.
    2. The action of any lawfully constituted authority in suppressing or attempting to suppress any such act, of terrorism or in minimising the consequences thereof.

    For the purpose of the this clause "terrorism" shall mean the use of violence for political ends and shall include any use of violence for the purpose of putting the public or any section of the public in fear.

    EXCLUSIONS

    THIS INSURANCE DOES NOT COVER

    1.  Loss by theft during or after the occurrence of any insured peril except as provided for in the Riot, Strike and Malicious Damage Clause.

    2.  Loss or damage to property occasioned by its undergoing any heating or drying process.

    3.  Loss or damage occasioned by or through or in consequence of

    1. the burning of property on order of any public authority
    2. Subterranean fire.

    4.  Loss of damage directly or indirectly caused by or arising from or in consequence of or contributed to by nuclear weapons material.

    5.  Loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to by ionising radiations or contaminations by radio-activity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purpose of this Exclusion only, combustion shall include any self-sustaining process of nuclear fission.

    6.  Loss or damage to any electrical machine, apparatus, fixture or fitting (including electric fans, electric household or domestic appliances, wireless sets, television sets and radios) or to any portion of the electrical installation, arising from or occasioned by over-running, excessive pressure, short circuiting, arcing, self heating or leakage or electricity, from whatever cause (lighting included) provided that this exemption shall apply only to the particular electrical machine, apparatus, fixture, fitting, or portions of the electrical installation so affected and not to other machines, apparatus, fixtures, fittings, or portions of the electrical installation which may be destroyed or damaged by fire so set up.

    7.  Loss or damage occasioned by or in consequence directly or indirectly, of any of the following occurrences, namely,

    1. War, invasion, act of foreign enemy hostilities or warlike operations (whether war be declared or not), civil war,
    2. Mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power.

    In any action, suit or other proceeding where the company alleges that by reason of the provisions of the above exclusions any loss or damage is not covered by this insurance, the burden of proving that such loss or damage is covered shall be upon the insured.

    8.  Loss or damage to bullion's or unset precious stones, any curios or work of art, for an amount exceeding Rs.1000/- manuscripts, plans, drawings, patterns, models, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of account or other business books, computer system records, explosives, unless otherwise expressly stated in the policy.

    9.  Property insured if removed to any building or place other than in which it is herein stated to be insured except Machinery and Equipments temporarily removed for repairs, cleaning, renovation or other similar purposes for a period not exceeding 60 days.

    This insurance does not cover:

    1. Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind of description whatsoever.
    2. Loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation or omissions of any kind.
    3. Loss or damage occasioned by permanent or temporary dispossession resulting from confiscation commandeering or requisition by any lawfully constituted authority.
    4. Loss or damage occasioned by permanent or temporary dispossession of any building or plant or unit or machinery resulting from the lawful occupation by any person of such building or plant or unit or machinery or prevention of access to the same.

    PROVIDED nevertheless that the Company is not relieved under © or (d) above of any liability to the Insured in respect of physical damage to the property insured occurring before dispossession or during temporary dispossession.

    CONDITIONS

    1. THIS POLICY shall be violable in the event of mis-representation, mis-description or non-disclosure of any material particular.
    2. All insurance under his policy shall cease on expiry of seven days from the date of fall or displacement of any building or part thereof or of the whole or any part of any range of building or of any structure of which such building forms part.
    3. PROVIDED such a fall or displacement is not caused by insured perils loss or damage by which is covered this policy or would be covered if such building, range of buildings or structure were insured under this policy. Notwithstanding the above, the company, subject to an express notice being given as soon as possible but not late than 7 days of any such fall or displacement, may agree to continue the insurance subject to revised rates, terms and conditions as may be decided by it and confirmed in writing to this effect.

    4. This insurance may be terminated at any time at the request of the insured, in which case the company will retain the premium at customary short period rate for the time the policy has been in force. This insurance may also at any time be terminated at the option of the Company on 15 days notice to that effect being given to the Insured, in which case the company shall be liable to repay on demand a ratable proportion of the premium for the un-expired term from the date of the cancellation.
    5. (1) On the happening of any loss or damage the insured shall forthwith give notice thereof to the company and shall within 15 days after the loss or damage or such further time as the company may in writing allow in that behalf, deliver to the company.
      1. A claim in writing for the loss or damage containing as particular an account as may be reasonably practicable of all the several articles or items or property damage or destroyed, an of the amount of the loss or damage thereto respectively, having regard to their value at the time of the loss or damage not including profit of any kind.
      2. Particulars of all other insurances, if any.

      The insured shall also at all time at his own expense produce, procure and give to the company all such further particulars, plans, specification books, vouchers, invoices, duplicates or copies thereof, documents, investigation reports (internal/external), proofs and information with respect to the claim an origin and cause of the fire and the circumstances under which the loss or damage occurred and any matter touching liability or the amount of the liability of the Company as may be reasonably required by or on behalf of the Company together with a declaration and oath or in other legal from of the truth of the claims an of any matters connected therewith.

      No claim under this policy shall be payable unless the terms of this condition have been complied with.

      1. The Company reserves the right to treat the claim as no claim if no information/documents are submitted by the insured within a period of 6 months from the date of loss.
      2. In no case whatsoever shall the Company be liable for any loss or damage after the expiration of 12 months from the happening of the loss or damage unless the claim is the subject of pending action or arbitration; it being expressly agreed and declared that if the Company shall disclaim liability for any claim hereunder and such claim shall not within 12 calendar months from the date of the disclaimer have been made the subject matter of a suit in a court of law then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.
    6. On the happening of loss or damage to any of the property insured by this policy, the Company may:-
      1. enter and take and keep possession of the building or premises where the loss or damage has happened.
      2. take possession of or require to be delivered to it nay property of the insured in the building or on the premises at the time of the loss or damage.
      3. keep possession of any such property and examine, sort, arrange, remove or otherwise deal with the same.
      4. sell any such property or dispose of the same for account of whom it may concern.

      The powers conferred by this condition shall be exercisable by the Company any time until notice in writing is given by the insured that he makes o claim under the policy, or if any claim is made, until such claim is finally determined or purported exercise of its powers hereunder, incur any liability to the insured or diminish its rights to rely upon any of the conditions of this policy in answer to any claim etc.

      If the insured or any person on his behalf shall not comply with the requirements of the Company or shall hinder or obstruct the Company, in the exercise of its powers hereunder, all benefits under this policy shall be forfeited.

      The Insured shall not in any case be entitled to abandon any property to the Company whether taken possession of by Company or not.

    7. If the claim be in any respect fraudulent, or if any false declaration be made or used in support thereof or if any fraudulent means or devices are used by the insured or any one acting on his behalf to obtain any benefit under the policy or if the loss or damage be occasioned by the willful act, or with the connivance of the insured, all benefits under this policy be forfeited.
    8. If the company at its option, reinstate or replace the property damaged or destroyed or any part thereof, instead of paying the amount of the loss or damages, or join with any other Company or Insure(s) in so doing, the Company shall not be bound to reinstate exactly or completely but only as circumstances permit and in reasonably sufficient manner, an in no case shall the Company be bound to expend more in reinstatement than it would have cost to reinstate such loss or damage nor more than the sum insured by the Company thereon.
    9. If the Company so elect to reinstate or replace any property, the insured shall at his own expense furnish the Company with such plans. Specifications, measurements, quantities and such other particulars as the Company may require, and no acts done, or caused to be done, by the company with a view to reinstatement or replacement shall be deemed an election by the company to reinstate or replace.

      If in any case Company shall be unable to reinstate or repair the property hereby insured, because of any municipal or other regulations in force affecting the alignment of streets or the construction of buildings or otherwise, the Company shall in every such case, only be liable to pay such sum as would be requisite to reinstate to its former condition.

    10. The insured shall at the expense of the Company do an concur in doing, and permit to be done, all such acts and things as may be necessary or reasonably required by the Company for the purpose of enforcing any rights and remedies or of obtaining relief or indemnity from other parties to which the Company shall be or would become entitled or subrogated, upon its paying for or making good any loss or damage under this policy, whether such acts and things shall be or become necessary or required before or after his indemnification by the Company.
    11. If at the time of any loss or damage happening to any property hereby insured there be any other subsisting insurance or insurances, whether effected by the insured or by any other person or persons covering the same property, this Company shall not be liable to pay or contribute more than its rateable proportion of such loss or damage
    12. If the property hereby insured shall at the breaking out of any insured peril, be collectively of greater value than the sum insured thereon, then the insured shall be considered as being his own insurer for the difference, and shall bear a rateable proportion of the loss accordingly. Every item if more than one of the policy shall be separately subject to this condition.
    13. Provided, however, that if the sum insured hereby on the property insured shall at the operation of any of the perils insured under this Policy or at the commencement of such destruction or damage be not less than 85% (eight-five percent) of the collective value of the property insured, this condition shall be of no purpose and effect.

    14. If any dispute or difference shall arise as to the quantum to be paid under this Policy (liability being otherwise admitted) such difference shall independently of all other questions be referred to the decision of a sole arbitrator to be appointed in writing by the parties to or they cannot agree upon a single arbitrator within 30 days of any party invoking arbitration the same shall be referred to a panel of three arbitrators, comprising of two arbitrators, one to be appointed by each of the parties to the dispute/difference and the third arbitrator to be appointed by such two arbitrators and arbitrator shall be conducted under and in accordance with the provisions of the Arbitration and Concilliation Act, 1996.
    15. It is clearly agreed and understood that no difference or dispute shall be referable to arbitration as herein before provided, if the company has disputed or not accepted liability under or in respect of this policy.

      It is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or suit upon this policy that the award by such arbitrator/arbitrators of the amount of the loss or damage shall be first obtained.

    16. At all times during the period of insurance of this policy the insurance cover will be maintained to the full extent of the respective sum insured in consideration of which, upon the settlement of any loss under this policy, pro rata premium for the unexpired period from the date of such loss to the expiry period of insurance for the amount of such loss shall be payable by the Insured to the Company.

    The additional premium referred above shall be deducted from the net claim payable under the policy. This continuous cover to the full extent will be available notwithstanding any previous loss for which the Company may have paid hereunder and irrespective of the fact whether the additional premium as mentioned above has been actually paid or not following such loss. The intention of this condition is to ensure continuity of the cover to the insured subject only to the right of the company for deduction from the claim amount, when settled of pro-rata premium to be calculated from the date of loss till expiry of the policy.

    Notwithstanding what is stated above, the Sum Insured shall stand reduced by the amount of loss in case the insured immediately on occurrence of the loss exercises his option not to reinstate the sum insured as above.

    ********

     

     

    ----------------------------------------------------------------------------------------

    ** Amended vide Notification No 6/3/75-RD dated 19.7.1978.

    @Amended vide Notification No F 6/26/71 IC dated 28.2.1974 and No 6/3/75 RD dated 19.7.78

    %Dated vide Notification No 6. (26)/74-IC dated 28.2.1974.

    & Inserted vide Notification No. 6/3/75 RD dated 19.7.1978

    *Amended vide notification No, F. 6(26)/71-IC dated 28.2.1974

    +Renumbered and amended vide Notification No. 6/3/75-RD dated 19.7.1978

    Renumbered vide Notification No. 6/3/75 RD dated 19.7.1978

    + Renumbered and amended vide notification No 6/3/75 RD dated 19.7.1978.

    Renumbered vide Notification No. 6/3/75-RD dated 19.7.1978.

    * Amended vide Notification No. F. 6(26)/71-IC dated 28.2.1974.

    Renumbered vide Notification No. 6/3/75-RD dated 19.7.1978.

    *Amended vide Notification No. F 6(26)/71-IC dated 28.2.74.