State will not give incentives to new alcohol, bidi units | mumbai news | Hindustan Times
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State will not give incentives to new alcohol, bidi units

mumbai Updated: Sep 18, 2016 00:58 IST
Faisal Malik

Existing incentives to manufacturing units will not be discontinued. However, new proposals will not be entertained.(HT File Photo)

New manufacturing units of beer, liquor, cigarette, gutka, pan masala and bidi will not be able to get incentives from the state government from now as the state decided to cancel incentives to such manufacturing units as they are injurious to health. The decision was taken after a cabinet sub-committee headed by chief minister Devendra Fadnavis cleared the proposal. Apoorva Chandra, principal secretary, state industries department confirmed the development.

The government decided to provide incentives to companies setting up new data centres in the state. A data centre is a facility that centralises an organization’s IT operations and equipment, and where it stores, manages, and disseminates its data. Data centres house a network’s most critical systems and are vital to the continuity of daily operations. Tata communications, NTT, netmagic solutions, Reliance IDC and Microsoft are some of the prominent names in the sector. This is the first time data centres will get incentives for setting up units in the state. The incentives include stamp duty exemption for purchasing land to set up a unit, electricity duty exemption, refund on octroi/LBT/ escorts tax or other cess for capital goods and raw materials and refund in VAT.

“The Maharashtra government is working hard towards industrial development. But now we are of the view that the manufacturing units of liquor, beer, cigarette, bidi, gutka and pan masala don’t need incentives as they are injurious to health. Also, they are self-sustaining,” Chandra told HT.

According to Package of Incentives 2013, the state provides incentives to various industries for setting up units in the state. This includes waiving stamp duty, 10% refund in sales tax and exemption in electricity duty, which will continue for up to seven years. Rate of incentives are higher in areas such as Vidarbha and Marathwada that are not industrially developed as compared to developed areas.

Chandra said they will not discontinue existing incentives to manufacturing units. However, new proposals will not be entertained.