The state government today released Rs 300 crores as subsidies for industries and tax rebates for investors. Majority of this amount will be spent on the capital subsidies and reimbursements of duties and tax.
A decision in this regard was taken at a meeting of the state cabinet presided over by the Chief Minister Nitish Kumar here. The amount will be spent on the reimbursement of VAT, capital subsidies, electricity duties exemptions and grants for purchase of generators. These subsidies and exemptions were announced under the new industrial policy of the state government, which came into effect in 2006 and later revised in 2011.
"Under the new Industrial Promotion Policy, the state government provides various subsidies, rebates and tax exemptions to attract investors. The state government today released additional grant of Rs. 300 crore in this regard for the current fiscal," said Principal Secretary Cabinet Coordination Department Brajesh Mehrotra. The amount is almost equivalent to last fiscal's allotment for the industrial subsidies.
According to the industries department sources, almost Rs. 200 crores will be spent on the capital subsidies. Apart from this, tax reimbursement and electricity duties exemption will also have large shares in this money.
The state government has waived off stamp duties and registration charges on land purchased for setting up industrial units. It provides 35 percent of the total project cost as capital subsidies for food processing units. The policy also promises to provide 80 per cent reimbursement of VAT for 10 years under the enterprise promotion programme.
The industrial policy also provides grants to the investors for setting up captive power plants or purchase of new generator sets.
