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Kerala offers sops to NRIs through industrial policy

Part I

All industrial units undertaking expansion / diversification / modernisation will also be eligible for investment subsidy at the rates and conditions as in the case of the additional investment made.

An additional investment subsidy of five per cent of the value of fixed capital investment subject to a ceiling of Rs 100,000 will be offered for tiny and SSI units established by entrepreneurs belonging to the categories such as Scheduled Castes and Scheduled Tribes, women, physically handicapped and ex-servicemen.

The present scale of subsidy for setting up captive generation units will continue as long as the difficult power situation prevailed.

The maximum amount of margin money provided to new units set up under the margin money loan scheme would be enhanced to Rs 250,000 from Rs 100,000. The interest rate for the margin money loan sanctioned under this revised scheme shall be reduced to nine per cent per annum.

The scheme for providing margin money loan to SSI units promoted by non-resident Keralites would be made more broadbased to include all technically qualified non-resident Keralites and they would be given a maximum margin money loan Rs 500,000 at nine per cent interest.

The policy said all new units would be exempted from sales tax for the first seven years, subject to a ceiling of 100 per cent of fixed capital investment.

All units, both new and existing, in the tiny and SSI sectors which install equipment for tapping renewable sources of energy shall be eligible for an additional investment subsidy at 15 per cent on such investment, subject to a maximum of Rs 500,000 per unit, over and above the normal subsidies. Additional subsidy of ten per cent subject to a maximum of Rs 25,000 would be provided for installation of pollution control devices in diesel generators.

UNI

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