Firms recruiting locals to get incentives in Rajasthan’s new industrial policy
The new policy is likely to come into effect from May 1.jaipur Updated: Apr 20, 2018 22:15 IST
Rajasthan’s new industrial policy will offer “incentives” to companies providing jobs to natives, official sources said, in a move aimed at addressing state’s growing unemployment problem ahead of the assembly elections slated later this year.
A committee set up under additional chief secretary (industries) Rajeeva Swarup is framing guidelines to amend the existing Rajasthan Investment Promotion Scheme (RIPS), 2014 to factor in the need for creating more jobs for the locals and the new goods and service tax (GST) regime that came into effect last year, said a finance department official on condition of anonymity.
The new policy is likely to come into effect from May 1.
The present policy has the provision of providing employment generation subsidies of up to 20% on value-added tax (VAT) and central sales tax (CST)—the two indirect taxes that have been replaced by the GST.
Moreover, the state government now wants an increase in the number of local people in employment generation, the official said.
“The new policy aimed to encourage companies to recruit local people. A notification will be issued soon for the implementation of the policy,” the official said.
The incentives could be in the form of additional subsidies in taxes or in the form of concessions in utility services such as electricity and water bills.
Industrialists, however, say the process of availing incentives under employment generation is cumbersome and so there should be simple criteria of direct subsidy based on number of locals employed.
In the run up to the 2013 assembly elections, the BJP had promised to generate 15 lakh jobs in its five-year tenure if voted to power.
In her budget speech this year, chief minister Vasundhara Raje had claimed that more than 13 lakh jobs had already been generated.
For employment generation, the BJP-government in the state also provides loans with interest subsidy to new entrepreneurs under Bhamashah Rozgar Srijan Yojana (BRSY).
People aspiring to start their own enterprise in the manufacturing sector can get a loan of up to Rs 25 lakh while the limit is Rs 10 lakhs for a venture in the services sector.
The subsidy for a venture set up by people from SC, ST, OBC communities and women in rural areas is 35% of the loan and 25% in urban areas. For the general category, the subsidy is 25% and 15% for rural and urban areas respectively.
With a 75 million population, Rajasthan ranks 11 in unemployment rate as per the fifth annual employment survey conducted by ministry of labour and employment.
The state’s industrial and tourism sectors contribute nearly 4.5% to India’s GDP.
First Published: Apr 20, 2018 22:15 IST