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Spl package on offer to boost investment

ALARMED BY the flight of capital in the backdrop of the Centre?s special package to Uttaranchal, the State Cabinet on Tuesday announced a package to boost investment with special concessions to those investing Rs 100 crore or more in UP.

india Updated: May 24, 2006 01:40 IST

ALARMED BY the flight of capital in the backdrop of the Centre’s special package to Uttaranchal, the State Cabinet on Tuesday announced a package to boost investment with special concessions to those investing Rs 100 crore or more in UP.

Chief Minister Mulayam Singh Yadav presided over the Cabinet meeting that took a decision in this regard. As per the decision, the concessions to the tune of 200 per cent of the invested amount would be given to prospective investors.

This will include granting concessions to new investors on trade tax and providing subsidies on transportation and development of infrastructure facilities.

According to industrial development commissioner Atul Kumar Gupta, the State Cabinet had to announce concessions from its own resources to check flight of capital to Uttaranchal.

With new concessions, the State Government hoped that most of proposals worth Rs 33000 crore received in 2005 would be implemented, said Gupta adding an investment to the tune of Rs 3000 crore was made in UP in a few years.

Besides some pharmaceutical units, the plants of some leading private companies had been installed in Uttaranchal, he said. New units would, however, come to UP now, he said.

Under this package, the trade tax payable by the investor would be treated as interest free loan for 15 years. This loan would be payable after 7 or 15 years, provided, the concessions in the rate of interest did not exceed 100 per cent of the invested amount. Barring actual cost of acquired land, no acquisition charges, overhead charges, lease rent, maintenance charges or interest would be charged from such investors, he said.
Such investors would also be given subsidy, barring coal and natural gas, on transportation of minerals and metals that may be brought from other states as raw material. Such subsidy would be equivalent to actual cost of transportation of such goods and would be payable for 15 years, he said.

The State Government would also reimburse expenses that the investor may incur on construction of road, power connection, laying of power feeder lines, railway siding and creation of other infrastructure facilities. This would, however, not exceed 10 per cent of actual investment. In addition to this, the State Government would provide capital subsidy of 10 percent to those investing a sum of Rs 100 to Rs 200 crore.

This subsidy would, however, go up to 20 per cent if the amount of investment exceeded Rs 200 crore. This facility would also be available on expansion or backward integration of existing units that have made an investment of Rs 100 crore or more.

Besides announcing the package of financial concessions, the State Cabinet decided to set up Orai Development Authority comprising area under Orai Nagar Palika and 24 adjoining villages, said chief secretary Naveen Chand Bajpai. This decision has been taken in pursuance of the Chief Minister Mulayam Singh Yadav’s announcement made on January 31, he said. The commissioner Jhansi and the country and town planner had already submitted their reports in that regard, he said adding a sum of Rs 3 crore had been given as soft loan to new authority.

The State Cabinet approved a proposal to grant a subsidy of Rs 10 lakh to 1443 societies that were involved in skinning and tanning of dead animals. The subsidy would be given to set up corpus utility plants to the societies under a scheme of the Union Government, he said.

The State Cabinet today decided to provide 63.45 acres of land of Delhi-Bulandshahar bypass road to a private educational trust of Ghaziabad to set up medical and dental colleges. In another decision the State Cabinet approved a scheme to grant Rs 5 lakh subsidy to provide employment opportunities in Bundelkhand region and eastern UP.