Kerala’s Draft Industrial Policy
Kerala recently unveiled a draft industrial policy.
- The new industrial policy would be released in January 2023 and it will be effective from April 1 of the same year.
- The draft industrial policy focuses on upgradation of skills required for the jobs of future, industries and technologies of the Industrial Revolution 4.0 and promotion of sustainable and responsible investments.
- Its priority sectors are artificial intelligence, graphene, space sector, Ayurveda, biotechnology, designing, electronic system design and manufacturing, electric vehicles, engineering and research and development and food technology.
- Other areas of focus include high-tech farming, high value-added rubber products, logistics, medical equipment, nanotechnology, renewable energy, retail, robotics, tourism and hospitality, 3D printing and marine cluster.
- The policy provides incentives such as investment subsidy on fixed capital, reimbursement of state GST and apprenticeship incentives for manufacturing sector.
- In order to encourage MSMEs to get funds through non-traditional routes instead of loans, existing and new MSMEs will get 50 per cent reimbursement of expenses incurred on floating Public Issue through the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE). This incentive is subject to a maximum limit of Rs.1 crore. It is applicable only if the funds raised are used for setting up or expanding the enterprise within the state.
- 100% electricity duty exemption will be provided for MSMEs for five years as well as 100% waiver of stamp duty and registration charges for setting up manufacturing units in industrial parks.
- Non-MSMEs will get 10% investment subsidy for a maximum of Rs.10 crore. They will also get 100% state GST reimbursement for capital investment for five years.
- New MSMEs will get 50% reimbursement (maximum of Rs.1 crore) of the expenditure.
- 20% reimbursement (maximum of Rs.25 lakh per unit) on cost of software, including big data analytic tools and machinery for upgrading manufacturing units.
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