Focused approach for balanced regional development
Balanced regional development is quintessential to the growth agenda of the government. It can be achieved by promoting industries in lesser developed areas which will thereby facilitate optimal utilization of natural and human resources available in that particular region. Balanced regional development supports dispersal of industrial employment, reduction of disparity in per capita income across regions and prevents concentration of industries in a few centers or cities.
Therefore, special enhanced incentives are being provided in the policy to encourage enterprises to invest in industrially less developed areas. Enhanced package of incentives will be provided on the basis of Taluka Categories for manufacturing and service enterprises. This would in turn promote local job creation, infrastructure redevelopment and thereby give an overall thrust to the local economy of these areas.
Incentives to MSMEs will be provided in terms of Capital and Interest Subsidy on term loans based on the category of talukas. As per the revised definition of MSMEs by Government of India, enterprises investing upto INR 50 crore in Plant & Machinery and turnover upto INR 250 crore have been categorized as “Medium Enterprises”. Incremental incentives will be provided to these Medium enterprises.