The New Policy would provide following concessions and facilities to industries commencing production on or after 1" April, 2004         

1.       Industrial Investment Promotion Assistance:-   

          An Industrial Investment Promotion Assistance, equivalent to 50% amount of Commercial Tax and Central Sales Tax (excluding Commercial Tax on the purchase of raw material) deposited by the unit in the preceding year would be given to the industry; having fixed capital investment between Rs 1.00 crore to Rs 10 crores. Provision for this purpose would be made in the departmental budget. This would be available for 3 years in advanced districts and for 5 years in the backward districts. Assistance will not be more than fixed capital investment.            

          An industrial Investment Promotion Assistance equivalent to 75% amount of    Commercial Tax and Central Sales Tax (excluding Commercial Tax on the purchase of raw material) deposited by the unit in the preceding year would be given to the industry having fixed capital investment more than Rs 10.00 corers. Provision for this purpose would be made in the department budget. The assistance would be available as per the following chart:-

Amount of assistance will not be more than fixed capital investment. For information technology industries, the above assistance would be available only in the IT Parks.

2.                 Concessions to Mega Projects in allotment of land:- 

Industrial units having fixed capital investment of Rs 25 crore and above (excluding working capital) would be treated as Mega projects. 5 to 20 acres land at concessional rate of 25 percent of the stipulated premium rate would be made available to such projects, depending upon the size of investment.

3.       Concessional package for Mega Projects and Projects of special importance:- 

Mega Projects of special importance with infusion of modem technology management could be given special economic or other package could be sanctioned by the Apex Level Investment Promotion Empowered Committee headed by the Chief Minister, on a case by case basis, keeping in view the requirements of such projects and resources of the state government. Industrial units in food and agro processing, milk products, and forest based products would be treated as Mega Projects for this purpose, if their fixed capital investment is over Rs. I 0 crore. 

4.                 Exemption in Stamp Duty and Registration Charges:- 

(a) Industries that obtain loan for new units, expansion, diversification or modernization would be eligible for exemption in stamp duty and registration charges in the legal documents as per the following chart:-

(b)       Stamp Duty and Registration charges would be levied on the premium amount as charged by the Industry Department for lease deeds of land and shed in Industrial Areas and Industrial Growth Centres. 

(c)       Stamp duty and registration charges would be levied only on the transfer fee; charged by the Industry Department in cases of land transfer.  Blood relations (Husband/Wife/Mother/Father/Son/Daughter/Brother/Sister Grand Daughter/Grand Son) would not be included in the transfer category for ownership or partnership units.  In such cases no transfer fee would be charged.  Appropriate amendments in the lease deed would be made for which Rs I000/- as stamp duty and Rs 100/- as registration fee would be charged. 

(d)       Stamp duty and Registration Charges would be fully exempted for the industrial units, which have been closed down and acquired by the industrial units, which have been closed down and acquired by the financial institutions and banks or sick and closed units referred to BIFR or liquidator for disposal. 

(e)       Full exemption in stamp duty and registration charges for sale/Transfer of sick units; as defined by RBI and closed down industrial units would be given.

(f)       If existing managements of an Industrial unit did not succeed in running the unit at more than 50% of its installed capacity for 3 years and for better utilization of capacity he sells the unit as “on going concern” to another entrepreneur or the said unit Merges/Amalgamates with another company then in the such cases stamp duty and registration charges would be limited to a maximum of Rs I0 lacs.

5.       Exemption from Electricity Duty on Captive Power Generation:-

          For a period of 5 years. 

6.       Entry Tax:-

Exemption would be given to New Industry for a period of 5 years from the date of first purchase of Raw material. 

7.       Interest Subsidy on Term Loan:-

This subsidy will be available to the New units at a interest rate of 3% to 5% for a period of 5 years to 7 years for a total amount of Rs 10 lacs to Rs 20 lacs; depending upon the category of districts in which unit has been set up.  This subsidy would also be available in "No Industrial Block" even though it falls in Advance District. 

8.                 Subsidy to Industry under Thrust Sector:-

Industry under Textile, Information Technology, Bio-Technology, Automobiles, Pharmaceuticals and Herbal, Food Processing, Agriculture and Urban Waste Processing, sectors have been categorized as Thrust Sector. In order to encourage the establishment of industry in the Thrust Sector a special will be given at the rate of 25% of the fixed investment to a maximum of Rs 10 lacs to 25 lacs as per the category of the District. These industries would not be eligible for other capital investment subsidy. 

9.                 Capital Investment Subsidy:-

          On fixed investment as per following particulars would be given to small scale industries.   

10.     Special provisions for entrepreneurs belonging to scheduled caste and      scheduled tribes and women entrepreneurs:-

• Interest subsidy on the term loan at a rate of 5% for a period of 5 years without any ceiling would be provided to the industrial units owned by women, scheduled caste and scheduled tribe entrepreneurs.

•  Investment subsidy at the rate of 15 percent of the capital investment with a ceiling of Rs 5 lacs would be given to said category of entrepreneurs in advanced districts.
• Upper limit for investment subsidy in the backward districts of A, B & C category would be Rs 6 lacs, Rs 12 lacs, 17.5 lacs respectively.  

11.     Concessions to the Existing Units:-

          Existing units undergoing expansion/diversification/ technological up-gradation will be treated as a new unit for the purpose of concessions and facility as  a New unit subject to the condition that additional fixed investment is more than 50 % of the existing unit and with a minimum amount of Rs 5.00 crores.

12.     Exemption from Mandi Tax:-

• Mandi Tax would not be levied on the agricultural produce brought from outside the state as raw material by a food processing industry.
• Agricultural produce used as raw material in the industries set up in the food parks would be exempted from Mandi Tax.

13.     Concessions to Food Processing Industry:-  

• Commercial Tax levied on the raw material of food processing industry; set up in food parks shall be adjusted (set off) against the Commercial Tax of the finished goods.
• With a view to encouraging food processing industry, reimbursement of up to Rs One lakh or I0% of actual expenditure made for obtaining quality certification and research work would be given.  Food processing industry, which is in the small scale category, would also be eligible for marketing grant.  Efforts for brand building of food processing industry in the small-scale sector would also be encouraged.  For this purpose reimbursement for establishing stall in national level/state level, exhibition/seminars or giving advertisement would be made, on the basis of actual expenditure.  In the first year Rs 75 thousand in the second Rs 50 thousand and in the third year Rs 25 thousand could be reimbursed.

14.     The new policy contains Special Packages for textile, medicinal and herbal industries and automobile component industry.  

15.     Special packages for reviving the small scale, large and medium scale sick/closed units and for restarting by a new entrepreneur have been provided in New Industrial Policy.

16.     Partial Reimbursement of Expenditure:-

          Incurred for Project Report, ISO 9000 quality certification, patent etc.

17.     Land at Concessional Rate for Wan Housing would be provided.

18.     Encouragement for the of Industrial Parks by private Sector:-

          All assistance would be provided including subsidy up to Rs 1.00 crore.