New industrial unit determination requires physical functional separateness distinct capital investment fixed assets

To qualify as a new industrial unit entitled to fiscal incentives under an industrial policy, an undertaking must be a physically and functionally distinct entity established through fresh outlay of capital investment in fixed assets made after the policy's effective date. The true test is not whether the unit represents an expansion or advancement of an existing business, but whether it emerges as a separate, identifiable production unit with independent licensing, distinct power infrastructure, and separate location, capable of operating as a commercially viable entity even if the parent business ceases operation or if its output feeds the existing enterprise. (IFGL Refractories Ltd. v. Orissa State Financial Corporation & Ors. | 2026 INSC 18)