The new policy aims to encourage investments in Information Technology, IT enabled services, auto-parts manufacturing and agro-based industries
The Jharkhand Government unveiled the state’s new Industrial Policy -2012, envisaging special thrust on four sectors including information technology, agro and food processing, auto components manufacturing and textiles.
The new policy would replace the outlived one, which was notified in 2001 and continuing on extensions till March 2011.
In keeping with the objective of job generation without putting pressure on environment, the new policy has proposed various incentives including offering land to the investors on subsidised cost in industrial areas and special cash benefits to IT and IT enabled Services (ITeS) till five year of their operation.
“Mega IT industries would be exempted from electricity duty for five years and units investing upto Rs 50 crore would be entitled for a comprehensive project investment subsidy.
Several other incentives would be doled out to IT companies. Besides, preferential treatment would be extended to biotechnology units, including setting up of venture capital funds.
To promote investments in food processing sector, the State government would be extending cash incentives to the tune of 25 per cent of the capital cost, upto a maximum of Rs 50 lakh. This apart, projects approved by the Union Ministry of Micro, Small and Medium Enterprises would get 10 per cent of the project cost.
To take the advantage of the State’s competitive edge in automobile and auto parts making, the new industrial policy has chalked out steps to make Jharkhand an auto hub of the country.
Automobile vendor parks, proposed to be set up by the auto majors in PPP or private mode, would get the same benefits from the government, as envisaged for industrial parks.
As per the new policy, the State Government will bear half of the cost on providing skill development training for local youths on industrial operation. Auto majors can also set up new it is or adopt the existing it is for training on relevant trade. Besides, they would also be entitled for VAT concession for one year and extra per training activity.
With a view to promote textile industries, the new policy has proposed interest rate subvention (subsidy on interest) of 2 per cent to the working capital to weavers, reelers, spinners and artisans. Finished products of all existing and new units of Khadi, village, cottage and handicraft units’ would be exempted from sales tax, if sold at authorized sales outlets.