Question

What step have been taken by the government to provide financial aid to industries set up in rural, backward and hilly areas?

Answer 1

Answer:

Some of the common incentives provided by the government far industries in backward and hilly areas are as fallows

(i) Land Every state offers developed plots for setting up of industries. The terms and

conditions may vary. Some states don’t charge rent in the initial years, while some allow ’ '

payment in installments.

(ii) Power is supplied at a concessional rate of 50 %, while some states exempt such units from payment in the initial years.

(iii) Water is supplied on no-profit, no-loss basis or with 50 % concession or exemption from water charges for a period of 5 years.

(iv) Sales Tax In all union territories, industries are exempted from sales tax, while some states extend exemption for 5 years period.