Financial Daily from THE HINDU group of publications
Friday, Aug 26, 2005

Port Info

Group Sites

Industry & Economy - Industrial Policy

AP Govt sets eligibility criteria for industrial fund

Our Bureau

Hyderabad , Aug. 25

THE State Government has created an Industrial Promotion Fund under the recently announced Industrial Investment Promotion Policy, 2005-10.

The fund will address specific problems of existing large-scale industries. While the Government plans to offer a special package of fiscal benefits on a case-to-case basis, the nitty-gritty would be finalised by the State Investment Promotion Board (SIPB).

To activate the fund, the State Investment Promotion Council (SPIC) met recently and finalised the guidelines and modalities. These would be circulated soon.

Who would be the major beneficiaries of the fund? According to official sources, a list of 10 criteria has been proposed to identify eligible industries.

Primarily, the investment limit for eligible existing large-scale industries has been fixed at Rs 100 crore. The fiscal package would depend on the nature of the project, investment, location and other relevant parameters.

Among the proposed 10 criteria are: A large sick/closed industry with substantial employment potential that is being taken up for revival/rehabilitation under a new management. Similarly, existing industry located in backward areas, sustaining continuous losses and facing threat of closure, would also be eligible.

Industrial units that suffer heavy damage due to natural calamities, extremist violence, and prolonged labour unrest and which are being reopened with infusion of fresh working capital by the management are also covered.

In an obvious attempt to preempt local industries migrating to other states, the Government has incorporated specific incentives and criteria in the guidelines.

Existing industrial units facing marketing problems on account of new units set up in North Eastern Hill States, Gujarat, Himachal Pradesh, Uttranchal etc., which offer 25-30 per cent cost advantage on manufactured goods in the form of excise duty and income tax concessions being offered by Government of India.

The SIPB has the power to sanction fiscal benefits depending on the specific request and need of the industry in question. The benefits include reimbursement of commercial tax paid in one year during the subsequent year at 25 per cent or more, for 5 years. It can also decide on mode of sales tax refund.

The second benefit is the reimbursement of power consumption charges at a prescribed rate over a specific period that the SIPB decides.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Cyclonic circulation deferred by a day

NAC draft Bill urges cess for unorganised sector
Chidambaram asks States to come up with Outcome Budgets
Kerala shows growth in all sectors, says report
Leakages plugged in IMFL duty collections in Karnataka
Outcome Budget: Govt plans 9 new infrastructure projects
Maharashtra ban on plastic bags may face hurdles
Govt in talks with allies on amendments to Electricity Act
`Grid quality power to 25,000 villages by 2012'
System soon to monitor ongoing power projects
Reliance Energy unit trips
We are not hungry for iron ore, says POSCO
Bangalore Management Association for good mechanism to rate B-schools
Food Safety & Standards Bill tabled in Lok Sabha
DLF Universal to enter Hyderabad real estate market
Spot gold may test support level
PHDCCI seeks independent authority for Delhi airport
Handloom sector eyes $50-b exports by 2010
Medal for NGRI scientist
Coalition limits options on privatisation: Manmohan
PM confident of consensus on FDI in retail, labour laws
22,071 units get aid under RYS programme
AP Govt to step up efforts to boost rural economy
Rural infrastructure — Nabard disbursals to States at Rs 25,384 cr
AP Govt sets eligibility criteria for industrial fund
National meet on tourism in Kochi from today
GATE mock test
Singapore to host Asian film festival
Post-flood, Mumbai slowly turns to `GIS' for disaster management

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line