Timelines, milestones and disbursement

Commonly 3 years from LoC for large projects, extendable by 1–2 years by the sanctioning committee for reasons beyond the investor's control. Mega/Ultra Mega categories get longer windows.

The date of the first commercial sale invoice, supported by GST returns and a certificate from the District Industries Centre / nodal officer. It fixes which policy version applies and starts the incentive clock.

See C13 — milestone-linked partial disbursement under OIMS, plus front-end land subsidy and stamp duty exemption.

Almost every policy contains a claw-back clause: incentives are recoverable with interest if the unit ceases production or relocates outside the state within a lock-in period (commonly 5–10 years from commercial production). Also triggered by falling below the mandated employment level.

Usually yes, with prior approval, provided the transferee assumes all policy obligations for the residual period. Unapproved transfer is a claw-back trigger.

Subsidies received are generally taxable under the Income Tax Act unless specifically exempt; treatment depends on whether the subsidy is capital or revenue in nature. Advise the investor to take this up with their chartered accountant — this is not a matter on which the department gives a view.