Retrospective financial caps expansion projects inapplicable fresh capital incentives new industrial units

Retrospective executive instructions and policy amendments limiting capital investment subsidy claims to overall financial ceilings previously availed under prior industrial policies apply exclusively to expansion, modernisation, or diversification projects of existing industrial units. Such cumulative financial caps cannot be invoked to reject or curtail fresh capital investment and generator subsidies sanctioned for a newly established industrial unit governed by general entitlement provisions. Denying full policy incentives to a distinct new unit on the basis of subsidies drawn by the parent or predecessor entity for earlier projects constitutes an erroneous misapplication of expansion restrictions. (IFGL Refractories Ltd. v. Orissa State Financial Corporation & Ors. | 2026 INSC 18)