Cabinet Nod For New Industrial Policy

The state Cabinet on Friday agreed to a proposal aimed at boosting investments to the state by giving a plethora of incentives to industries, especially micro, small and medium Enterprises (MSMEs), with the approval of the New Industrial Policy (NIP) for the years 2010-15.

The NIP will come into effect from July 1, 2010.

The government hopes to attract over Rs. 15,000 crore and create an additional 5 lakh jobs with the implementation of the NIP. It has targeted a 17% growth rate in manufacturing by increasing the investment subsidy for micro and small enterprises from Rs. 15 lakh to Rs. 20 lakh.

The nod for the implementation of the NIP came at a meeting of the state cabinet, chaired by Chief Minister K Rosaiah.

Briefing media persons after the cabinet meeting, Information & Broadcasting Minister Geetha Reddy said called the NIP the 'best industrial policy in the country'. She said the NIP has the potential to transform the state into the most favoured investment destination.

The policy offers a 75 paisa reimbursement of power cost for each unit. The present electricity tariff for industry is Rs. 3.53 per unit, the lowest compared to other industrially developed states.

The government will provide Rs. 100 crore every year for the promotion of industrial infrastructure for micro and small enterprises.

The NIP has will also enhance the existing investment limit of Rs. 100 crore to Rs. 250 crore. This decision is will not affect projects creating employment for more than 2,000 persons, that will be under consideration of a special package of incentives under mega projects.

Geetha Reddy also said that the government aims to take advantage of the available deposits of natural gas and promote industries along the gas pipeline laid in the state.

The other highlights of the new policy includes 25% of VAT (value added tax) reimbursement for large and medium enterprises, 50% VAT reimbursement for small enterprises, 5% additional subsidy to women entrepreneurs, 10% of plots to women entrepreneurs in the new industrial estates, and special incentives for entrepreneurs belonging to scheduled castes and scheduled tribes.

Courtesy: INN News