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New industrial units and existing units taking up expansion and modernization programmes may enjoy exemption from payment of land premium once the Odisha government finalises its draft industrial policy resolution (IPR)-2013.
According to the draft IPR, units in the micro and small sector can avail waiver on premium of up to 100 per cent for land area of five acres whereas units in the medium sector will be entitled to 75 per cent exemption for an area not exceeding 25 acres.
The IPR promises 50 per cent exemption for large industrial units for an area of up to 500 acres. Similarly, units falling under the priority and thrust sectors can enjoy exemption of 50 per cent and 100 per cent respectively on land premium payments.
Thrust sector includes ancillary and downstream units and industries in the field of agro-processing, automobiles, auto components, textiles and apparel. Similarly, information technology, tourism, bio-technology, chemicals, handicrafts, sea food processing and pharmaceuticals fall under the priority sector.
In a bid to ensure hassle free land allotment, the IPR has suggested that the government may consider transferring additional land to Odisha Industrial Infrastructure Development Corporation (Idco) to enable it to set up new industrial areas, estates and parks. Idco is the government's nodal agency for land acquisition.
“Idco may be provided with budgetary support or the corporation may utilise its own finances to acquire private land and notify them as industrial areas. The infrastructure projects of Idco shall be entitled to allotment of government land at concessional rates,” the draft IPR says. The rehabilitated sick industries will be eligible for such incentives as recommended by the State Level Institutional Committee (SLIIC) within the provisions of the IPR.
Likewise, a transferred unit going into commercial production will be eligible to avail all or any of the incentives for the period for which the unit was eligible before transfer but could not avail the same due to suspension of production or closure on account of sickness or for any other reason.
An industrial establishment seized under Section 29 of the State Financial Corporation Act, 1951 and thereafter sold to a new entrepreneur on sale of assets basis will be treated as a new unit by IPR-2013.
