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Bhopal City
MP cabinet endorses Industrial Policy-2014, amends State Tourism Policy
01-10-2014

BHOPAL: Madhya Pradesh cabinet meeting chaired by Chief Minister Shivraj Singh Chouhan here on Tuesday endorsed new Industrial Promotion Policy-2014 aiming at attracting maximum investments to the state and amended the tourism policy of the state.

Under the policy, an online Investors Monitoring & Facilitation System will be put in place to make available facilities and permissions within prescribed time-limit to investors through single window system. MP TRIFAC will serve as nodal agency for this.

Process to get assistance pertaining to VAT and Central Sales Tax has been simplified. In view of delay in reimbursement of VAT to units at present, 75 per cent assistance will be given immediately on payable amount on confirmation of deposit of total tax amount annually. Remaining 25 per cent will be given by Commercial Taxes Department after fixation of tax.

Under the policy, resources of government polytechnics and ITIs will be used for promoting skill development. Side by side mega ITIs will be established in major industrial areas.

The new policy has increased the upper limit of loan subsidy for MSME sector from Rs 20 lakh to Rs 30 lakh. A state-level investment empowered committee headed by the Chief Secretary will be constituted to provide assistance to investment projects. District-level committees for MSMEs will be made more effective. Minimum 20 percent land in new industrial areas will be earmarked for MSME sector.

Maximum assistance of Rs 25 lakh will be given for establishment of waste management system to promote green industrialisation. Vender Development Programme will be made more effective to promote establishment of auxiliary units. As per the new policy, assistance will be given through deferment in government outstanding dues (except taxes) to financial crisis-ridden investment projects involving over Rs 500 crore capital investment.

Maximum Rs 3 crore will be reimbursed against expenditure made on infrastructure development on undeveloped land outside industrial areas in the context of major and medium industries. Non-polluting micro and small industries will be exempted from obtaining NOC from Pollution Control Board. Minimum space will be reduced from 100 acres to 50 acres for establishment of private industrial areas.

The new policy provides that maximum 20 per cent of the total land in new/expanded industrial areas of 100 acres or more will be reserved for residential/commercial activities. Number of ineligible in-operation industries will be reduced from 52 to 19 by rationalisation of their list so that maximum number of industries can be provided assistance. Equal facilities/assistance will be given to industries in entire state by abolishing classification of districts in respect of industries.

For overall development of tourism in the state and to attract more investment from private sector, amendments have been made in Madhya Pradesh State Tourism Policy.

According to the amendments, all applications for investment in tourism sector will be disposed of through single window system. Tourism projects have been enlisted in the policy. Exemption from Luxury Tax liability on rooms available in hotels has been increased from Rs 2000 to Rs 3000. Subsidy expenditure on capital expenditure in heritage hotels has been increased from 25 per cent or Rs 1.50 crore to 35 per cent or Rs 1.50 crore.

For obtaining budget hotel construction grant, condition of 50 rooms has been reduced to 25 rooms. Condition to fix maximum rent as Rs 2000 has been abolished. Apart from relaxation in provisions of construction of convention centre of land bank of Tourism Department, now construction of convention centre on private land will also be encouraged.

The cabinet also endorsed amendments in the Land Disposal Policy 2008 for disposal through auction the government lands allotted to Tourism Department. As per it, disposal of government lands allotted to Tourism Department through auction has been exempted from “Niji Poonji Nivesh Ke Mamlon Mein Sarkari Dakhal Rahit Awantan Niti” issued by Revenue Department.

On demand by investors for tourism projects, such land, which is a part of land bank mentioned in Revenue Department’s policy of 2013 and has not been transferred to Tourism Department, will be disposed of under Revenue Department’s policy of 2013.