The new industrial policy, unveiled by the government in the Legislative Assembly on Friday, has rolled out a slew of incentives, including capital investment subsidy, reimbursement of tax, interest and power subsidies to entrepreneurs with an assurance to give necessary clearance for setting up industrial units within 30 days of submitting application.
Unveiling the new policy, Chief Minister V. Narayanasamy said the government would provide 40 per cent capital investment subsidy to micro and small enterprises subject to a maximum of Rs 40 lakh.
While medium and large enterprises would be eligible for 35 per cent subsidy for investment made on land, building, plant and machinery subject to a maximum of Rs. 35 lakh, women /SC / ST entrepreneurs would be given capital investment subsidy of 45 per cent subject to a maximum of Rs 75 lakh.
VAT reimbursement
The government would also reimburse 100 per cent of net VAT / SGST paid by micro and small enterprises in Puducherry and Karaikal regions for a period of five years and those setting up units in Mahe and Yanam regions for a period of seven years.
The medium enterprises would be eligible for reimbursement of 75 per cent of the net VAT / SGST remitted and large enterprises would be eligible for 50 per cent of the tax paid.
The industrial units availing of loan from financial institutions towards creation of fixed assets and for working capital would be eligible for interest subsidy to an extent of 25 per cent of the annual interest paid for five years.
The government would also exempt payment of stamp duty for purchase, lease of land / shed / buildings, mortgages and hypothecations.
Subsidy
As per the policy, owners of buildings with a maximum extent of 50,000 square feet with the intent to lease out to IT industries or for own industrial units would be given a subsidy of 30 per cent subject to a maximum of Rs. 1 crore for the investment made, the Chief Minister said.
The policy envisages fixed power cost reimbursement of 50 paise per unit for a period of five years for units set up in Puducherry and Karaikal regions and seven years for those in Mahe and Yanam regions.
