 "New industrial policy for Assam from March 1")
The Assam government on Saturday announced ‘The Industrial and Investment Policy of Assam, 2014’, a new industrial policy that would come into effect in the state from March 1. The move is seen as an effort to fine-tune the Congress-ruled state government’s policy to promote industry. The new policy would be in place for a period of five years and has identified promotion of micro, small and medium enterprise (MSME) sector as its “priority area”.
The new policy has laid down “various incentives” for units set up by private sector, joint sector, co-operative, partnership, self-help groups , trust, NGOs, as well as units set up by state government.
Also incentives have been provided to service sector activities such as employment-oriented skill building and vocational training institute, hotels and resorts above two-star category and diagnostic facility.
The new policy also provides value-added tax (VAT) exemption for 15 years to industries set up on or after March 1, 2014. For the first and the second year, there would be 100 per cent VAT exemption, followed by 80 per cent in the third and fourth year and 50 per cent till 15th year. Additional VAT exemption proposed for units set up in designated industrial parks such as Food Park, Bamboo Park, Plastic Park, Tea Park, etc. Entry tax has also been exempted for all eligible units including state public sector units (PSUs) on procurement of plant and machinery from other states.
The new industrial policy has also exempted luxury tax by 50 per cent in hotel industry.
However, figures from recent years show the government-sponsored incentives, by both centre and the state, have failed miserably to attract sizeable amount of private sector investment in the state. State industry minister Pradyut Bordoloi, while announcing the new industrial policy on Saturday, admitted the previous state-sponsored industrial policy could not attract much investment from the private sector.
In the last five years, he added, the state could attract about Rs 12,000 crore, out of which around Rs 9,800 crore was by the central government in the Assam Gas Cracker Project.
Though the private sector, especially the big-ticket investors, had often sited availability of land, power and a conducive environment as prerequisites for investments, rather than incentives, Bordoloi sounded ambiguous and unconvincing while replying to questions of media persons on how the state government planned to meet the demand for land and power for industry. “We are looking at how we can create new industrial hubs through public-private-partnership (PPP) model,” replied the minister to a query on unavailability of land even within the premises of current industrial estates, given that the thrust area of the new policy would be on MSME sector.
“We have realised we can’t attract big-ticket investors because of unavailability of land. So the utmost priority would be on the MSME sector. Efforts are on to create a conducive environment for the MSME sector,” said Bordoloi. He added: “The broad objective of the policy is to encourage sustainable investment in the MSME sector on local resources, create employment especially in rural areas and build a vast pool of skilled personnel.”
The new policy has laid down “various incentives” for units set up by private sector, joint sector, co-operative, partnership, self-help groups , trust, NGOs, as well as units set up by state government.
Also incentives have been provided to service sector activities such as employment-oriented skill building and vocational training institute, hotels and resorts above two-star category and diagnostic facility.
The new policy also provides value-added tax (VAT) exemption for 15 years to industries set up on or after March 1, 2014. For the first and the second year, there would be 100 per cent VAT exemption, followed by 80 per cent in the third and fourth year and 50 per cent till 15th year. Additional VAT exemption proposed for units set up in designated industrial parks such as Food Park, Bamboo Park, Plastic Park, Tea Park, etc. Entry tax has also been exempted for all eligible units including state public sector units (PSUs) on procurement of plant and machinery from other states.
The new industrial policy has also exempted luxury tax by 50 per cent in hotel industry.
However, figures from recent years show the government-sponsored incentives, by both centre and the state, have failed miserably to attract sizeable amount of private sector investment in the state. State industry minister Pradyut Bordoloi, while announcing the new industrial policy on Saturday, admitted the previous state-sponsored industrial policy could not attract much investment from the private sector.
In the last five years, he added, the state could attract about Rs 12,000 crore, out of which around Rs 9,800 crore was by the central government in the Assam Gas Cracker Project.
Though the private sector, especially the big-ticket investors, had often sited availability of land, power and a conducive environment as prerequisites for investments, rather than incentives, Bordoloi sounded ambiguous and unconvincing while replying to questions of media persons on how the state government planned to meet the demand for land and power for industry. “We are looking at how we can create new industrial hubs through public-private-partnership (PPP) model,” replied the minister to a query on unavailability of land even within the premises of current industrial estates, given that the thrust area of the new policy would be on MSME sector.
“We have realised we can’t attract big-ticket investors because of unavailability of land. So the utmost priority would be on the MSME sector. Efforts are on to create a conducive environment for the MSME sector,” said Bordoloi. He added: “The broad objective of the policy is to encourage sustainable investment in the MSME sector on local resources, create employment especially in rural areas and build a vast pool of skilled personnel.”