CBSE Class 11-commerce Answered
14. Discuss any five incentives provided by Indian Government for industries in backward and hilly areas ?
Asked by sntshtrk530 | 04 Dec, 2017, 09:00: PM
Expert Answer
Incentives provided by the Government for industries in backward and hilly areas are
1. Land: It is provided by the government at concessional rates to people in the backward region. Although the terms and conditions may vary, some industries are charged with rent in the initial years and some are allowed to pay in instalments. This makes it easier to set up a business at a low cost.
2. Water: It is supplied for 5 years on a no-profit and no-loss basis with 50% concession or exemption from water charges.
3. Power: It is an indispensable requirement for the functioning of industries. Thus, it is supplied at 50% concessional rate, whereas some states may exempt units from paying in the initial years.
4. Sales tax: Many states exempt industries from paying sales tax, while some states extend exemption for five years.
5. Octroi: It is scrapped by many states.
2. Water: It is supplied for 5 years on a no-profit and no-loss basis with 50% concession or exemption from water charges.
3. Power: It is an indispensable requirement for the functioning of industries. Thus, it is supplied at 50% concessional rate, whereas some states may exempt units from paying in the initial years.
4. Sales tax: Many states exempt industries from paying sales tax, while some states extend exemption for five years.
5. Octroi: It is scrapped by many states.
- 6. Raw materials: Preference is given to backward areas with respect to allotment of scarce resources.
Answered by Tharageswari S | 05 Dec, 2017, 11:25: AM
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