The State Cabinet on Wednesday approved Kerala’s new industrial policy with an added focus on sunrise sectors, including Artificial Intelligence (AI) and electric vehicles, and promising several incentives to attract large-scale investments to the State.
Speaking at a press conference here, Industries Minister P. Rajeeve said the State would observe next financial year as ‘year of investments’, even while continuing with the entrepreneurship activities of the last year.
Some of the major incentives include 10% investment subsidy of up to ₹10 crore on fixed capital and 100% State GST reimbursement for capital investment for five years for mega projects and 100% electricity duty exemption for MSMEs for five years.
As part of ushering in Industrial Revolution (IR) 4.0 initiatives, involving AI, data mining and analysis, 20% reimbursement of the cost of software including big data analytic tools and machinery will be provided subject to a maximum of ₹25 lakh per unit
Reimbursements
For mega projects, the government will reimburse up to ₹5,000 per month in salary costs to the company for a period of one year for filling more than 50% of the job openings from the local population. Similar reimbursement will be provided if more than 50% of the permanent employees are women.
Salary reimbursement of ₹7,500 will be given monthly for one year for providing permanent employment to transgender persons.
Stamp duty and registration charges will be waived up to 100% on lease deed or purchase of land or building for setting up manufacturing units in government and notified private industrial parks. Similar waiver will be provided for women and SC/ST entrepreneurs for setting up manufacturing units anywhere in the State.
Financial aid
Financial aid of up to ₹3 crore for basic infrastructure development for ventures on private industrial estate. To promote research and development, initiatives which have R&D arrangements with universities in the State will get 20% reimbursement of the cost. Scale-up loans of ₹1 crore will be provided for start-ups.
Companies will be reimbursed up to 100% of the stall charges incurred, subject to a maximum of ₹5 lakh for participating in one international fair or exhibition per year. As much as 50% of the expenses incurred for compulsory quality marking like CE, FDA, ISO and BIS will be refunded, to a maximum of ₹25 lakh per unit per year.
As part of incentives for following sustainable practices, reimbursement of 25% of expenses incurred for setting up effluent treatment plants, rainwater harvesting, zero discharge technologies, recycling of e-waste and recycling of waste water, excluding expenditure incurred for civil works, subject to a maximum of ₹25 lakh.
Priority sectors
The priority sectors identified by the policy makers include aerospace and defence, AI, robotics and breakthrough technologies, Ayurveda, biotechnology and life sciences, design, electric vehicles, electronic system design and production, engineering research and development, food processing, graphene, value-added rubber products, hi-tech farming and value-added plantation crops, logistics and packing, maritime sector, medical devices, nanotechnology, pharmaceuticals, recycling and waste processing, renewable energy, retail sector, tourism and hospitality and 3D printing.
Source from: https://www.thehindu.com/news/national/kerala/cabinet-approves-keralas-new-industrial-policy/article66675706.ece