Question : INCENTIVES FOR BACKWARD STATES



(a) whether the Government propose to provide special incentives for setting up of industries in backward districts of Orissa like Kalahandi-Bolangir-Koraput;

(b) if so, the details thereof; and

(c) if not, the reasons therefor?

Answer given by the minister



THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SMALL SCALE INDUSTRIES AND AGRO AND RURAL INDUSTRIES (SMT. VASUNDHARA RAJE)

(a) to (c): Yes, Sir. The Central Government provides special incentives for setting up of industries in backward districts of the country including those in Orissa under various schemes like Integrated Infrastructural Development (IID) Scheme, Growth Centre Scheme, National Programme for Rural Industrialisation, Prime Minister`s Rozgar Yojana, Rural Employment Generation Programme, etc. Simultaneously, Government has a strategy for the development industries in backward districts of the country by strengthening and continuation of the existing schemes and on-going programmes and preparing need based new scheme. These relate to enhanced supply of credit, technology upgradation, infrastructural development, market development, entrepreneur development etc. Based on the proposal from State Government of Orissa three IID Centres have been sanctioned in the districts of Khurda, Rayagarha and Jagatsingpur and four Growth centres have been sanctioned in Chhatrapur (Ganjam), Kalinganagar-Duburi (Cuttack), Jharsuguda (Jharsuguda), and Kesinga (Kalahandi). Besides these fiscal incentives in the form of five years` Tax Holiday and 25% deduction from profits and gains for another five years (30% in case of companies) is available for new undertakings set up in the industrially backward districts of Oriassa viz. Phulbani, Kalahandi (Category-A) and Bolangir, Mayurbhanj, Balasore and Ganjam (Category-B).