Cabinet nod for sops to mega projects

Civic bodies could give tax relief for attracting investments

The state cabinet today approved the proposal which authorises it to direct municipal corporations to give mega projects exemptions or concessions in octroi and property tax.

Speaking with mediapersons after the weekly cabinet meeting, Chief Minister Vilasrao Deshmukh said, "The cabinet today approved to issue ordinance to carry out necessary amendments in the municipal act in this regard."

He further said, "There is tremendous competition among states to attract investments and after the value-added tax (VAT) regime has come into place, state governments have been prohibited from giving any concession in sales tax. So, the state government had to find alternatives to give concessions in sales tax and exemption from octroi or concessions in property tax could be one way."

He clarified that this exemption would be given in the case of industries or service sector companies which are going to put investment of Rs 500 crore or more and create 1,000 or more jobs.

The cabinet has also given a nod for making available Rs 462 crore to various irrigation projects in north Maharashtra.

Elaborating on the decision, Deshmukh said that north Maharashtra, which consists of four districts of Dhule, Nandurbar, Jalgaon and Buldhana, is the most backward region of the state and districts such as Dhule and Nandurbar are a predominantly tribal districts.

These rank lowest in terms of human development index and per capita income. Irrigation projects in these districts would help tribals to set themselves free from rain-fed agriculture and increase their income level substantially, he added.

Besides, the cabinet today gave an approval to increase the limit of transport tax levied on various vehicles and license fees which government collects from the automobile manufacturers and dealers.

TEMPTING TIMES
EXEMPTION would be given for industries or service sector companies which plan investment of Rs 500 cr or more and create 1,000 or more jobs

CABINET also approves making available Rs 462 cr to irrigation projects in north Maharashtra