Post News Network
Bhubaneswar, August 16: To promote electronic system design and manufacturing, the state government has decided to provide a special incentive package scheme including capital investment subsidy for business houses seeking to set up units in the state.
The meeting of the state cabinet presided over by Chief Minister Naveen Patnaik gave its nod in this regard Thursday. “The state government has decided to formulate a special package scheme to attract investments in electronics system design and manufacturing (ESDM) sector to Orissa by giving additional incentives on capital investment subsidy, entry tax, human capital investment subsidy, sales tax and VAT, power incentives, water incentives, interest subsidy among others over and above the provisions made in ICT policy-2014,” said chief secretary GC Pati.
As per the proposed policy, 25 per cent investment subsidy on fixed capital investment for plant and machinery will be given to new large and maga ESDM units subject to the maximum limit of Rs 50 crore for each cluster company of the EMC at Infovalley or any other ESDM park to be set up in the state.
Companies setting up units in this segment shall be exempted from entry tax on acquisition of machinery and equipments for a period of three years. Similarly, training subsidy up to Rs 800 per person shall be reimbursed by government to each large and mega ESDM cluster company of the EMC at Infovalley or any other park in the state.
Also, the policy has provisions for power and water incentives for business houses. On interest subsidy, the document said, “the company shall be entitled for an interest subsidy at the rate of five per cent per annum from public financial institutions or banks as per ICT policy for a period of five years from the date of starting commercial production.”
