(a) whether the newly created special category State of Uttaranchal
is in dire need of a financial package for economic development
keeping in view its special requirements;
(b) whether the Central Government are also considering to extend
the Income-tax and Excise Relief Schemes to Uttaranchal like other
Special Category States for encouraging Industrial Development; and
(c) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI BALA SAHEB VIKHE PATIL)
(a): Uttaranchal, after its creation on 09.11.2000, has been
receiving funds from Government of India on both plan and non
plan accounts. Financial needs of the States for their overall
economic development are posed by the State Governments at the
time of finalisation of their Annual Plans. Annual Plan of
Uttaranchal for 2001-02 is yet to be finalised. However, Union
Cabinet has approved granting of Special Category Status to
Uttaranchal. This decision will be implemented after the same
is approved by the National Development Council subsequent to
which the State Government would receive Central Assistance for
their Annual Plan in the shape of 10% loan and 90 % grant in place
of 70% loan and 30% grant.
(b) & (c) : Section 80-IB of the Income Tax Act provides two tier
tax holiday to industrial undertakings including cold storage plants
set up in an industrially backward State as specified in the 8th
Schedule of the Income Tax Act, or in notified industrially backward
districts if these commence operation on or before 31.03.2002. All
parts of Uttaranchal, except the districts of Nainital, Pauri,
Udhamsinghnagar, Dehradun and Hardwar, are notified as industrially
backward districts for purposes of this section.
As regards Central Excise Relief, there is no such proposal
under consideration of the Government.