Captive power generation to be allowed

By Our Special Correspondent

HYDERABAD, DEC. 26. Captive power generation, creation of a Rs. 100-crore fund for infrastructure development, stamp duty exemptions and phase-out of subsidies are major highlights of the new industrial policy (NIP) unveiled by the Government on Tuesday.

The Cabinet approved the report of the sub-committee set up to evolve the policy. The State Investment Promotion Board (SIPB), headed by the Chief Minister, also approved the policy at its sitting last week.

Today's Cabinet meet also examined the recommendations of another sub-committee on cooperative law and reforms. The amended legislation is to be introduced in the next sitting of the Assembly. The Minister for Information and Public Relations, Dr. N. Siva Prasad, said the Cabinet reviewed the seasonal conditions, progress of procurement and payment of minimum support price, and noted that farmers got MSP for their produce in 191 market yards in the State. It also okayed a proposal to lease out 2 hectares of land in Madhapur, near here, to the Confederation of Indian Industry (CII) for setting up Green Business Centre.

Dr. Siva Prasad explained that the focus of the policy was on provision of quality infrastructure coupled with gradual phasing out of subsidies and creating the right industrial environment to make the State attractive for foreign and domestic investors. The incentives mentioned in the NIP (2000-2005) will come into retrospective effect from April, 2000, and cover all new units, except those listed as ineligible, located anywhere in the State barring the jurisdiction of the Municipal Corporations of Hyderabad, Vijayawada and Visakhapatnam and going on stream before March 31, 2005. A special package of incentives will be considered for mega projects with investment of Rs. 500 crores plus. Principal features of the policy are: provision of infrastructure such as roads,power, water, drainage at the `doorstep' of identified industrial estates, creation of allied infrastructure facilities like telecom, internet linkage, info kiosks, transportation links, container depots and exhibitions by promoting private participation.

A Rs. 100-crore fund will be created for use in the absence of regular budget provision for the works. Captive generation will be allowed to all industrial units and dedicated feeders or lines laid by the AP Transco to all the existing and proposed industrial areas and estates. Up to 10 per cent of water from the existing and new projects will be earmarked for industrial purposes. Fifty per cent exemption will be allowed on stamp duty, registration fee and transfer duty of lands meant for industrial use.

Even while proposing to phase out subsidies, the policy states that 20 per cent subsidy on capital investment up to a maximum of Rs. 20 lakhs will be given to eligible small-scale and tiny units.

Single-window registration for clearance will be compulsory by law - the District Collector designated as competent authority to clear cases up of to Rs. 1 crore investment, the State Industrial Promotion Committee up to Rs. 25 crores and the SIPB empowered to approve projects with investment exceeding Rs. 25 crores.

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Section  : Southern States
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