The much awaited new state manufacturing policy was announced in the state assembly on Monday by energy and petrochemicals minister Saurabh Patel.
He said the policy aims at giving incentives to the existing and potential players in the manufacturing sector. Under the new policy, the government aims to increase the contribution of the state’s manufacturing sector from the present 27% of gross state domestic product (GSDP) to 32% by 2017.
The government has made changes in the industrial policy of 2009 and has come out with a new incentive scheme to boost the manufacturing sector. The industries covered under the scheme include auto and auto components, solar and wind equipment, specialty and fine chemicals, electronic system design and manufacturing along with food and agro business. Incentives to promote manufacturing in these industries will be in various forms.
Interest subsidy incentive
For MSME sector interest subsidy will be 7%. For units having an investment of more than Rs.100 crore, there will be a 2% interest subsidy for five years. For smaller units the maximum benefit will be up to Rs.25 lakh, for bigger units Rs.50 lakh per annum.
Core infrastructure development
For core infrastructure like internal roads, water supply, electrification and communication facilities in the industrial parks, 50% of the cost or Rs.20 crores, whichever is lower, will be offered.
Common facility development
For new technology, process or design development and for developing testing facilities for things like raw material, 80% of the total cost or Rs.10 crores, whichever is lower, will be offered.
Common effluent treatment plant
Including the Government of India’s grants if any, the state government will give a maximum of up to 75% of the total cost. If the Central assistance is not available, the state government will give 40% of the cost.
Incentive for centres of excellence
If the centre of excellence is of national level, 70% of the total cost or a maximum of Rs.20 crore will be offered. If it is of international standards, the assistance will be a maximum of Rs.30 crore.
1 comment:
Just thought that it may be relevant here to mention that there are two ways contribution of manufacturing to GDP can be increased. 1. By increased investment (subsidy included) and 2. by improving the fundamental productivity levels of indian industries. The second one is important to be globally competitive and get the desired ROI from the first.
Glad to inform that we have been working on dramatically improving productivity of indian manufacturing and have figured out a way to do it without costly trade offs. And now there is a book available that presents the recipe for building competitive of indian industry.
here is the link:
http://www.amazon.com/dp/B00CIZR1LQ
wbr
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