Tripura Industrial Investment Promotion Incentive Scheme (TIIPIS), 2022

The Government of Tripura introduced TIIPIS 2022 with effect from 1 April 2022, valid for a period of five years (until 31 March 2027) for eligible new units.
It replaces/updates earlier incentive schemes in the State and is aimed at making Tripura more competitive for industry, especially in the North-East region.
The scheme covers sectors including thrust-sectors (e.g., rubber, bamboo, agro & horticulture processing, gas based units, etc) with higher incentives.

Here are the main incentives under TIIPIS 2022 that you should note:

Capital Investment Subsidy

For MSMEs in non-thrust sector: 30% of fixed capital investment, subject to a ceiling of ₹1 crore (₹100 lakhs) per enterprise.
For thrust-sector MSMEs: 40% of fixed capital investment, ceiling ₹1.25 crore (₹125 lakhs) per enterprise.
For large-scale enterprises (land & building) subsidy @30% or 40% as applicable, ceiling of ₹2 crore (₹200 lakhs) per enterprise.
For private infrastructure developers (for creation of industrial infrastructure with land area ≥ 30 acres) subsidy @30%, ceiling ₹5 crore (₹500 lakhs).

Procurement Preference

Eligible units get 15% procurement preference in tenders by State Government agencies on products manufactured in Tripura, subject to conditions (e.g., local value-addition ≥20%).

Industrial Promotion Subsidy (SGST / GST related)

Reimbursement equal to the net Goods & Services Tax (GST) actually paid by the enterprise (net of input tax) subject to annual ceilings: ₹80 lakhs for non-thrust, ₹1.25 crore (₹125 lakhs) for thrust sector per year.
The aggregate entitlement for an enterprise shall not exceed 150% of the investment made in plant & machinery.

Power / Utility Subsidies

For eligible units with connected load above 20 HP: power subsidy @ ₹5.00 per unit without any upper ceiling.
For units with connected load up to 20 HP: partial reimbursement of power charges @25% of actual power charges paid, max ceiling of ₹15 lakhs/year for non-thrust and ₹25 lakhs/year for thrust sector enterprise.

Employment Cost / Other Subsidies

Employment cost subsidy: For MSME enterprises with employment of 20 or more persons: 50% of employer contribution paid toward EPF & ESI, after 5 years of operation.
One-time reimbursement of fees/charges for standard certification / technology know-how: 100% reimbursement.

The scheme applies for new industrial units that commence commercial production on or after 1 April 2022 and on or before 31 March 2027.
It covers both manufacturing and specified service/industrial infrastructure set-ups, including large units and infrastructure developers.
Units must meet the definition of eligible enterprise as per scheme guidelines and apply for an “Incentive Eligibility Certificate” from the nodal authority.
Thrust sector status is important: Units in designated “Thrust Sectors” get higher subsidy rates. The list of thrust sectors is available from the State’s Industries Department.
The scheme has specific ceilings and maximum subsidy limits, so you need to check your investment scale and project size carefully.
For large (very large investment) projects: there is mention of “special incentives” where projects with minimum fixed capital investment of ₹100 crore and employment more than 100 persons may merit special consideration.

Cost advantage: With significant capital investment subsidies (30-40%) and other recurring cost subsidies (power, SGST refund), your cost of setting up in Tripura drops, improving financial viability.
Strategic location: Tripura being in the North-East region offers access to local raw materials (e.g., bamboo, rubber, horticulture) and emerging infrastructure support; this scheme enhances attractiveness.
Competitive edge: Preferences in procurement also help in securing local demand / government purchases—good for start-up or scaling firms.
Time-window advantage: Since the scheme is valid until 2027, setting up early can lock in benefits; for units beginning later benefits may be harder to obtain or conditions stricter.
Support for expansion & infrastructure: The scheme covers one-time substantial expansion/modernisation and infrastructure development—so it supports both new units and growth.

Infrastructure readiness in some areas of the state may still be developing—logistics, connectivity, power supply, skilled manpower may pose challenges; incentives help but cannot fully compensate for infrastructure gaps.
You must strictly meet the eligibility criteria and documentation; for example commercial production dates, sector classification, employment thresholds—failure may disqualify you or reduce benefit.
Subsidy ceilings and maximum limits are fixed; if your investment is very large you may still need to self-finance a large part of the cost.
For large projects (₹100+ crore) special incentives are possible but subject to detailed appraisal and approval (not simply automatic) via state investment promotion agency.
Incentives don’t guarantee market success—product viability, raw material supply, market access, competition and cost structure still matter.

Scheme details on official website: “State Scheme Details | Department of Industries & Commerce, Government of Tripura” – industries.tripura.gov.in/state-scheme-details
Thrust sector list & conditions: industries.tripura.gov.in/thrust-sector
Summary of TIIPIS 2022: TIIPS-2022 Executive Summary PDF