What are the incentives provided by the government for industries in backward and hilly areas ?
What are the incentives provided by the government for industries in backward and hilly areas ?
(i) Land : Developed plots are offered by every state for establishing industries.
(ii) Power : Some states supply power at a concessional rate of 50%, while some give it free of cost during the initial years.
(iii) Water : Water is either supplied at 50% concession or is totally free for a period of 5 years.
(iv) Finance : Small business units are offered loans at a very low rate of interest i.e. 10 to 15% subsidy is given for building capital assets.
(v) Sales tax : Exemption from sales tax is extended by some states for a period of 5 years while all union territories provide full exemption from sales tax. It is also known as Value Added Tax (VAT).
(vi) Raw material : Units located in backward areas get preferential treatment in the matter of allotment of scarce raw materials like cement, iron, steel, etc.
(i) Land : Developed plots are offered by every state for establishing industries.
(ii) Power : Some states supply power at a concessional rate of 50%, while some give it free of cost during the initial years.
(iii) Water : Water is either supplied at 50% concession or is totally free for a period of 5 years.
(iv) Finance : Small business units are offered loans at a very low rate of interest i.e. 10 to 15% subsidy is given for building capital assets.
(v) Sales tax : Exemption from sales tax is extended by some states for a period of 5 years while all union territories provide full exemption from sales tax. It is also known as Value Added Tax (VAT).
(vi) Raw material : Units located in backward areas get preferential treatment in the matter of allotment of scarce raw materials like cement, iron, steel, etc.
