PUDUCHERRY: In a bid to revive industrial growth which has become stagnant in the Union Territory, the Puducherry government on Friday came up with a new industrial policy with a slew of incentives to compete with neighbouring states in attracting investments.
Releasing it in the Assembly, Chief Minister V Narayanasamy said, “The aim is sustainable industrialisation, by developing a strong manufacturing sector with the focus on employment generation, while considering all aspects of environment and bringing in significant increase in GSDP.”
The thrust is on electronic manufacturing, IT / ITeS, auto components, plastic products, agro and food processing industry, marine products, solar power, alternative and renewable energy products, leather products excluding tannery, biotech industries, engineering industries, gem and jewellery, textile, garments and apparel parks, pharmaceutical formulations, traditional handicrafts, tourism and flavour and fragrance industries.
Capital Investment Subsidy has been offered to new industries and for expansion of existing ones. Micro and small enterprises get 40 per cent subsidy on investments on land, building, plant and machinery subject to a maximum of Rs 40 lakh, while for Medium and Large Enterprises, it is 35 per cent subject to a maximum of Rs 35 lakh.
For women, Dalit and Tribal entrepreneurs, 45 per cent subsidy is offered, subject to a maximum of Rs 75 lakh.
Micro and small enterprises have 100 per cent reimbursement of net VAT, State GST paid for a period of five years for Puducherry and Karaikal regions and 7 years for Mahe and Yanam regions, the Chief Minister said. Reimbursement for Medium Enterprises is 75 per cent of net VAT and SGST, while for large enterprises it is 50 per cent.
Narayanasamy said industrial units, availing loan from financial institutions towards creation of fixed assets and for working capital, are eligible for interest subsidy to an extent of 25 per cent of the annual interest amount paid, for five years, admissible from the date of commencement of commercial production.
This is subject to a maximum of Rs 5 lakh for a period of 5 years for Puducherry and Karaikal regions and 7 years for Mahe and Yanam regions. Interest subsidy is also applicable to units set up by disabled and and ex-servicemen. A 100 per cent stamp duty exemption will be given for purchase and lease of land, shed, buildings, mortgages and hypothecations, he said.
Further, 30 per cent subsidy subject to a maximum of Rs 1 crore, will be granted to infrastructure developers, on investment made on buildings with a minimum extent of 50,000 sq.ft. constructed area. This will also be granted to land owners who lease out land to IT industries or for own industrial use (for manufacture of computer systems, software, ITES, BPO and KPO).
Besides subsidy to pollution control equipment, the policy has thought of everything like technology acquisition fund, skill enhancement fund, quality certification subsidy, intellectual property protection support, market development support, assistance for energy and water conservation as well as awards besides preferential allotment of plots in Industrial Parks.