Vijayawada : Industrial Policy offers fiscal sops to SC/STs
In order to encourage SC/ST entrepreneurs in the state, the department of industries and commerce announced fiscal incentives to the categories of micro, small and medium enterprises, large industries and mega industries in the Industrial Policy-2020-23 released recently
Vijayawada : In order to encourage SC/ST entrepreneurs in the state, the department of industries and commerce announced fiscal incentives to the categories of micro, small and medium enterprises, large industries and mega industries in the Industrial Policy-2020-23 released recently.
Industries and enterprises are divided into micro, small, medium, large and mega industries based on the investment and turnover. As per the government norms, enterprises with investment in plant and machinery or equipment not more than Rs 1 crore and annual turnover of up to Rs 5 crore is considered as micro enterprise.
Enterprises with investment of up to Rs 10 crore and annual turnover Rs 50 crore are categorised as small industries. The medium industries are those with investment up to Rs 50 crore and the annual turnover of 250 crore.
Following are the incentives announced by the government under the Industrial Policy for 2020-23 to Micro and Small enterprises.
Micro and small enterprises of SCs and STs will get reimbursement of 100 per cent on stamp duty and transfer duty paid by them on purchase of land meant for industrial use, reimbursement of 100 per cent stamp duty for lease of land/shed/buildings, mortgages and hypothecations, reimbursement of 100 per cent of net SGST accrued to state for a period of five years from the date of the commencement of the commercial production or up to realisation of 100 per cent fixed capital investment, whichever is earlier.
According to department of industries and commerce, the government will offer 15 per cent investment subsidy on fixed capital investment limited up to Rs 20 lakh, whichever is lower. SC/ST entrepreneurs can avail these benefits till 2023. The subsidy will be released only after three years of continuous operation with at least 80 per cent efficiency in all parameters, i.e. employment and production.
Due to impact of lockdown, some small and micro enterprises could not continue production and they may get some difficulties to avail the subsidy. The government also decided to give interest subsidy of three per cent on the term loan taken for fixed capital investment by new micro and small enterprises for five years from the date of commencement of commercial production.
The government also announced reimbursement of 25 per cent land conversion charges for industrial use limited to Rs 10 lakh. Since many entrepreneurs face problems in payment of power bills, the state government has decided to give fixed power cost reimbursement of Rs 1 per unit for a period of five years from the date of the commencement of commercial production to the SC/ST entrepreneurs.
Land conversion is very important process in promotion of industries. The entrepreneurs have to pay charges for converting the agriculture land into non-agriculture purposes. So, the government has decided to reimburse 25 per cent land conversion charges for industrial use limits up to Rs 10 lakh.