Arunachal Pradesh Industrial Development Policy 2025: Key Benefits & Incentives

Arunachal Pradesh Industrial Development Policy 2025

The Government of Arunachal Pradesh has unveiled the Arunachal Pradesh Industrial Development and Investment Policy (APIDIP), 2025, replacing the earlier 2020 version. This transformative policy aims to establish a robust, pro-business environment across the state, focusing on ease of doing business, targeted financial incentives, sustainable development, and infrastructure expansion.

If you’re a startup, MSME, or investor planning to explore Northeast India, this policy offers significant advantages to kickstart or expand your operations in the region.


Table of Contents

  1. Vision & Objectives of the 2025 Policy
  2. Why Arunachal Pradesh? Strategic Advantages
  3. Infrastructure Support Under APIDIP 2025
  4. Who Is Eligible?
  5. Key Incentives & Benefits
  6. Industrial Estates & Priority Sectors
  7. Registration & Compliance Requirements
  8. How Sigma Solutions Helps You Succeed
  9. Frequently Asked Questions (FAQs)
  10. Conclusion & CTA

Vision & Objectives of the 2025 Policy

The vision behind APIDIP 2025 is to drive inclusive, sustainable industrialization by fostering entrepreneurship while preserving the cultural and ecological identity of Arunachal Pradesh.

Key Objectives:

  • Improve ease of doing business
  • Promote employment, especially among APST communities
  • Strengthen MSMEs and local manufacturing
  • Enhance infrastructure and market linkages
  • Support green and export-oriented industries

Why Arunachal Pradesh? Strategic Advantages

  • Border Trade Opportunities: Proximity to Bhutan and Myanmar
  • Affordable Industrial Power: Tariffs from ₹3.35 to ₹4.30 per unit
  • Skilled Youth Workforce: Training from ITIs and universities across 23+ trades
  • Fast-growing Connectivity: 9 industrial zones, 4 airports, major highways
  • Power Generation Potential: Over 58,000 MW hydropower capacity
  • Tourism & Biodiversity: A top eco-tourism destination with global biodiversity value

Infrastructure Support Under APIDIP 2025

The policy strengthens industrial infrastructure through:

  • 17 industrial estates with long-term land leases (33 to 50 years)
  • Dedicated power feeders (up to 132 kV) for industries
  • Improved rail & air connectivity (Pasighat, Ziro, Itanagar, Tezu)
  • Single Window System (SWS) for streamlined approvals

Who Is Eligible?

  • New industrial/service sector units in priority sectors
  • Existing businesses with substantial expansion plans
  • GST-registered businesses in positive sectors
  • Units hiring APST, women, or physically challenged individuals

Key Incentives & Benefits

1. Stamp Duty & Registration Fee Reimbursement

  • 100% refund for government industrial lease registration fees post-commencement

2. Capital Investment Subsidy

Investment SizeSubsidy %Max Amount
₹5–25 lakh50%₹15 lakh
₹25–50 lakh50%₹30 lakh
  • Additional 10% bonus for APST/local hiring or priority sector involvement

3. Interest Subvention (Capital + Working Capital)

  • Capital Loan: 5–8% per annum (max ₹25 lakh for 5 years)
  • Working Capital Loan: 5% subvention (max ₹50 lakh)

4. Power Subsidy

Enterprise TypeSubsidy/UnitMax DurationMax Cap
MSMEs (11–33 kV)₹2.005 years₹75 lakh/year
Large (132 kV)₹1.005 years100% of plant cost

5. SGST Reimbursement

  • 100% Net SGST refund for 7 years
  • Capped at:
    • 250% of investment for Micro
    • 200% for Small
    • 180% for Medium & Large

6. Green & Sustainability Incentives

TypeRebateMax Limit
Solar/Wind/Hydro setup50%₹25 lakh
Wastewater Recycling Facility50%₹2 lakh
Pollution Control Devices50%₹10 lakh
Electric E-load Carriers10%₹50,000

7. Export & Transport Subsidies

  • Air Freight: 50% of cost (max ₹5 lakh/year)
  • Export Incentives: 60% of transport cost to port + ₹50,000/sample shipment

8. Quality & Facility Support

  • 35% reimbursement for certifications (ISO, FSSAI, etc.) up to ₹5 lakh
  • ₹1 lakh/year for 3 years for use of common testing/R&D facilities

9. Special Support for Underprivileged Entrepreneurs

  • 95% DPR cost reimbursement (max ₹1 lakh)
  • 10% land plot reservation for:
    • Single mothers, widows
    • People with 40%+ disabilities

Industrial Estates & Priority Sectors

Key Industrial Locations:

  • Niglok, Pasighat, Changlang, Naharlagun, Bame, Dirang

Priority Sectors:

  • Food processing, bamboo & forest produce
  • Textiles, handicrafts, green energy
  • Coaching, biotech, tourism, and skill centers

Registration & Compliance Requirements

  • Register via Single Window Portal
  • Ensure compliance with ESI, EPF, labour, and environmental laws
  • Mandatory APST hiring: 20% (management), 30% (non-management)
  • Physical verification is required before incentives are released

How Sigma Solutions Helps You Succeed

Sigma Solutions supports businesses at every stage of growth under the APIDIP 2025 framework. Our expert team assists in:

  • ✅ DPR preparation & feasibility reports
  • ✅ APIDIP registration & portal handling
  • ✅ Loan and capital subsidy consulting
  • ✅ Licensing, ESI, GST & pollution compliance
  • ✅ MSME project planning and setup
  • ✅ Ongoing business mentorship and marketing

Frequently Asked Questions (FAQs)

Q1. Who is eligible for APIDIP 2025 incentives?
New and existing industrial or service sector units in priority or positive sectors are eligible.

Q2. Can Sigma Solutions help with Single Window Portal registration?
Yes, Sigma Solutions handles registration, documentation, and submission for all government portals.

Q3. Is land available for MSME projects under APIDIP?
Yes, land is offered in government industrial estates on long-term lease basis.

Q4. What is the capital investment subsidy limit?
Upto ₹30 lakh with additional 10% for priority sectors or APST hiring.

Q5. Can I apply if I already run a business in Arunachal?
Yes, if you plan to expand by reinvesting at least 25% in assets.

Q6. What certifications are eligible for reimbursement?
Certifications like ISO, GMP, ZED, FSSAI, etc. are eligible under the scheme.

Q7. How does SGST reimbursement work?
You get 100% of net SGST back for 7 years, capped as per your enterprise category.

Q8. Is support available for green energy setups?
Yes, rebates of up to ₹25 lakh are available for solar/wind/hydro systems.

Q9. Can women entrepreneurs get additional benefits?
Yes, women (especially widows and single mothers) get priority land allotment and higher DPR support.

Q10. How long does Sigma Solutions take to process APIDIP assistance?
Typically 10–20 working days, depending on documentation readiness and departmental processing.


Conclusion & Call to Action

The Arunachal Pradesh Industrial Development and Investment Policy 2025 offers unparalleled incentives to businesses across manufacturing and service sectors. With comprehensive support in land leasing, capital subsidy, tax reimbursement, and green development, it paves the way for scalable industrialization in the Northeast.

Sigma Solutions is your end-to-end partner in turning these benefits into tangible business growth.

🚀 Related Services by Sigma Solutions:

  • Business Registration & Licensing
  • DPR & Project Report Drafting
  • MSME & Startup Assistance
  • ISO & FSSAI Certification
  • Capital Subsidy Consulting
  • ESI, EPF & GST Compliance
  • Manufacturing & Service Unit Setup

📞 Contact Us Today: +91-9084729472
🌐 Website: www.sigmasolutions.in
📧 Email: [email protected]

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