Agriculture, automobiles, tourism, will be the focus areas for Government

Bhopal: Agri business, food processing, textiles, automotive-auto components, tourism, pharmaceutical, bio-technology, IT/ITES, healthcare, skill development and logistics & warehousing will be the main ares on which Madhya Pradesh Government to focus.  A cabinet meeting chaired by Chief Minister Shri Shivraj Singh Chouhan on Tuesday gave its approval to amendments in Industrial Promotion Policy-2010.

 Arrangements have been made in the amended policy for appointment of investment relationship managers for prompt implementation of investment proposals, network/hardware/software for transparent administration and online implementation of schemes for industries, making TRIFAC holding company for all the Audyogik Kendra Vikas Nigams and arrangement of State Government’s block guarantee for smooth running of TRIFAC.

As per the policy, special assistance will be provided for setting up industrial and high-tech parks in private sector. Assistance equivalent to 15 percent of development cost subject to a maximum of Rs. five crore will be given on establishment of minimum 10 units in minimum 100 acre area and on providing regular employment to minimum 250 persons.

Under the scheme, units to be set up in industrial parks to be established in all the districts will be given facilities of ‘C’ Category.

The policy has abolished export tax charged presently by local bodies. For this, necessary amendments will be made in concerning Acts by the Urban Administration & Development Department. The Finance Department will make available adequate funds to the Urban Administration & Development Department to reimburse entry tax to local bodies. The compensation amount will be limited to the quantum of entry tax being realised by local bodies presently.

In the amended policy, provisions have been incorporated for making necessary amendments in the Act for abolishing export tax, declaring new industrial areas as industrial townships, making positive revision of the list of present ineligible industries in the context of present industrial scenario and abolition of energy development cess if power generated by captive power plant is consumed by unit itself.

Provisions have also been incorporation in the amended policy to create a land bank of suitable government/private lands for industrial use, formulate suitable Act for acquiring land for development of land bank from private landowners on the basis of mutual agreement between landowners, set up online application and allotment system for making land allotment process transparent and make requisite amendments in Madhya Pradesh Industrial Lands and Industrial Buildings Management Rules-2008.

The policy provides for granting facilities like mother units to vendor units of big automobile and textile sector industries if vendor units sell 75 percent of their products to mother units. Mother units have been permitted to sub-lease land to vendor units. Assistance of 50 percent of input tax will be given in the context of transferred goods of automobile and textiles sector.

Classification of districts for micro and small industries will be abolished and facility under ‘C’ category will be provided. Reimbursement of industrial investment promotion assistance and input tax will be made quarterly. In all the district, loan subsidy rate has been fixed at 5 percent, period 7 years and maximum limit Rs. 20 lakh for micro and small industries. For medium manufacturing units, facilities will be provided as before as per classification of districts. Assistance rates will continue to be 6 percent for 8 years upto a maximum of Rs. 25 lakh for scheduled caste, scheduled tribes, women and disabled categories.

Capital investment subsidy under the new policy will be at the rate of 15 percent upto a maximum of Rs. 15 lakh for micro and small industries in all the districts and at the rate of 20 percent upto a maximum of Rs. 20 lakh for scheduled caste, scheduled tribes, women and disabled categories. In all the districts, 25 percent investment capital subsidy upto a maximum of Rs. 30 lakh will be given to micro and small industries of thrust sector. Accordingly, Rs. 12 lakh will be given in backward “A” district, Rs. 18 lakh in backward “B” districts and Rs. 30 lakh maximum investment capital investment subsidy will be given in backward “C” districts.

Provision of special package has been made for automobile industries in the amended policy. Case-wise decisions will be taken by the apex Investment Promotion Empowered Committee about automobile industries to be set up with permanent capital investment of Rs. 500 crore or more. Ten percent investment subsidy will be given to new textiles industries on investment of Rs. one crore or more. Exemption from entry tax will be given for seven years to new units to be set up with permanent capital investment of Rs. 100 crore or more. Maximum Rs. five crore loan subsidy will be given for five years at the rate of two percent on linked term loan from Centrally sponsored Textile Upgradation Fund Scheme, which will be upto a maximum limit of Rs. 25 lakh.

As per amended policy, special package will be given to industrial groups investing more than Rs. 20 thousand crore but less than Rs. 50 thousand crore (Category-1) and more than Rs. 50 thousand crore (Category-2). Counting of an industrial group’s investment in the state will be made with effect from October 2007. Under the investment, 50 percent part of the project received through bidding process will be subject to counting. Fifty percent amount of investment made in any one sector will be admissible for counting of entire investment.

Exemption for eight to ten years will be given from entry tax to Category-1 and 2 projects. Size of government land (eight kilometers away from Municipal limits) given to Category-1 and 2 projects on 75 percent concessional rate will be 70 acres and 100 acres. Exemption from electricity charge will be given for 12 and 14 years respectively, to captive power plants of Category-1 and 2 projects.

 
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