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Odisha seeks industry bodies' views on draft IPR

The draft policy prescribes land premium and VAT benefits for existing and new units

BS Reporter  |  Bhubaneswar 

The state industries department has sought suggestions from the industry bodies for formulation of the draft Industrial Policy Resolution (IPR)-2014.

The department has written to the industry associations like Utkal Chamber of Commerce and Industry, the Confederation of Indian Industry (CII)-Odisha chapter, Odisha Assembly of Small & Medium Enterprises (OASME), Odisha Small Scale Industries Association (OSSIA) and Odisha Young Entrepreneurs Association ( OYEA ) for submission of suggestions and views on the draft IPR-2014.

The draft IPR, among other things, proposes to exclude new industrial units and existing units taking up expansion and modernisation programmes from paying land premium. The micro and small units in non-priority sector can avail waiver on premium up to 100 per cent for land area of five acres whereas medium scale units will be entitled to 75 per cent exemption for an area not exceeding 25 acres.

The new IPR promises 50 per cent exemption for large industrial units for an area of up to 500 acres. Similarly, the priority sector units can enjoy 100 per cent exemption in premium payment to Odisha Industrial Infrastructure Development Corporation (Idco) upto 1,000 acres of land.

The new policy, which will replace the IPR-2007, makes the new micro, small and medium enterprises eligible for reimbursement of 75 per cent of VAT paid for a period of five years from the date of commencement of production limited to 100 per cent of cost of plant and machinery provided that the VAT reimbursements are applicable only to the net tax paid, after adjustment of input tax credit against the output tax liability.

This reimbursement for new units in priority sector is 100 per cent with a cap of 200 per cent of cost of plant and machinery. The existing industrial units taking up expansion, modernization and diversification are also eligible for this benefit.

The focus sectors of the state government for next five years include auto and auto components, downstream and ancillary industries, agro and food processing, IT (information and technology) and electronics, tourism, civil aviation , pharma, handicrafts and textile, petroleum and petrochemicals. “We will submit our constructive suggestions for the draft IPR-2014 within two days to the state industries department,” said Ramesh Mohapatra, president, UCCI.

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First Published: Thu, July 24 2014. 20:19 IST