GULBARGA: The Hyderabad Karnataka Chamber of Commerce and Industry (HKCCI) has welcomed the new Industrial Policy 2006-11 announced by the State Government and has said the creation of the Rs. 500-crore corpus fund for infrastructure upgradation will enable investors to avail the ready-to-use facilities for rapid industrial development in the State.

In a statement issued here on Thursday, president of the HKCCI Umakant Nigudgi said the special feature of the industrial policy was to promote industrial development in backward areas and categorise the 176 taluks in the State into three zones to provide subsidies ranging from 2 to 25 per cent.

Mr. Nigudgi said the 76 of the most backward taluks had been bracketed in the first zone making them eligible for 25 per cent subsidy and 100 per cent exemption of stamp duty payment. In the second zone, 85 backward taluks had been included, eligible for 20 per cent subsidy and 75 per cent exemption in the payment of stamp duty. The third zone would have the remaining taluks and would get 2 per cent subsidy. This subsidy scheme had been extended to the tiny industries and small scale industries. However, the exemption extended on the stamp duty payment had been extended to all types of industries in these taluks.

He also welcomed the entry tax and special entry tax exemption for three years in zone one and two for the procurement of capital goods, the five year tax exemption on purchase of raw materials and the grant of five acres of land along with a capital contribution of 50 per cent of the project cost for the setting up of human resource development training centres by the industries.

Mr. Nigudgi appreciated the State Government's move to fix a time-bound completion programme for the proposed food park in Jewargi in Gulbarga district, which would help in boosting the agro-based and food processing industries in the Hyderabad Karnataka region.

Another provision for granting exemption from APMC cess in respect of the food processing units engaged in processing pulses, oilseeds, fruits and vegetables would help these industries procure raw materials directly and not depend on the APMC.

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