The Cabinet today decided to waive Rs 450-crore licence fees for the radio paging industry besides switching to a revenue-sharing mechanism from the present fixed licence fee regime.
In the new arrangement, paging companies would have to pay 5 per cent of their revenues, including the universal service obligation (USO), said Information and Broadcasting Minister Sushma Swaraj.
The Cabinet also decided to waive Rs 295.71 crore worth of loans and interests owed by public sector Burn Standard Company Ltd in an attempt to attract prospective bidders for the disinvestment of the company. The waiver would enable Burn Standard to post a positive net worth, Swaraj said.
It also approved a proposal for signing a bilateral investment promotion and protection agreement with Sudan, under which both countries will extend the most-favoured nation treatment to investors.
India has already signed similar agreements with 51 countries and is in the process of signing up with another 25 countries.
For radio paging operators, the outstanding spectrum charges amounting to Rs 13 crore will not be waived.
The waiver of the outstanding licence fees and switchover to a revenue-sharing arrangement will make the radio paging service affordable to the lower income segment and make the industry viable.
With the waiver of loans and interest, the net worth of Burn Standard will increase about Rs 2.44 crore. The interests of existing employees would also be protected, the minister said.
The Cabinet also approved a package for promoting investment in Himachal Pradesh and Uttaranchal, which included a 100 per cent excise duty exemption for 10 years and a 100 per cent income-tax waiver for 5 years.
All new industries set up in the notified industrial estate will be provided a tax-free status.
These include theme parks, growth centres, industrial infrastructure development centres, export processing zones and other industrial locations.
Income-tax exemption after 5 years will be restricted to 30 per cent for companies and 25 per cent for other companies.
New industries in the notified locations will be eligible for capital subsidy at the rate of 15 per cent, and their investment in plant machinery will be subject to a maximum ceiling of Rs 3 million.
Similar benefits will also be extended to existing units in notified locations on their substantial expansion as well as thrust industries irrespective of location.
