Department of Industrial Policy & Promotion

ID Desk
…

Subject :- Material for preparation of brief for the Parliament Standing Committee to
be held on 18.4.06 - References from Hon’ble M.Ps in the Department
Related Parliamentary Standing Committee on Commerce and from the
concerned States.
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With reference to note dated 10.4.06 on the above subject from JS(RSJ) to JS(UK),
it is submitted that in so far as ID Desk is concerned no reference were received from the
Hon’ble Members of Parliament as attached with the said note and no issues/matters raised
by the State Government of the concerned Members of Parliament are pending in this
Desk.

However, this Desk deals with the applications under the Industrial Park Scheme
and a statement showing the number of approvals accorded under the Industrial Park
Scheme to undertakings in the concerned States and the number of applications pending
for approval under the Scheme in those States, as on 10.4.06, is furnished below -

S State No. of approvals No. of

l.N given applications
o pending

1. Andhra Pradesh 14 23
2. Assam Nil 1
3. Bihar Nil Nil
4. Gujarat 5 12
5. Karnataka 35 23
6. Kerala 1 Nil
7. Maharasthra 54 28
8. Meghalaya Nil Nil
9. Uttar Pradesh 4 4
10 West Bengal 7 3

Total 120 94

(Sashi Ranjan Kumar)

Deputy Secretary

JS (SRJ)
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D/o IPP, I.D. Note No. 3/1/06-ID dated April 10, 2006
 Department of Industrial Policy & Promotion
ID Desk
…

Subject :- Parliament Standing Committee to be held on 18.4.06 – Material for

opening remarks of Secretary (IPP) - Brief on Industrial Park Scheme
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With reference to note dated 10.4.06 on the above subject, brief on Industrial Park
Scheme in the form of bullet points in furnished below –

Industrial Park Scheme

• The Industrial Policy scheme was first notified in March, 30, 1999. It was
revised on December 1, 1999 and April 1, 2002. The Scheme presently in
operation is known as the Industrial Park Scheme, 2002. The Scheme is
under revision.

• This scheme is to encourage private investment in development of

industrial parks etc. in which high quality infrastructure is made available in
a centralized manner, so that the units operating from such parks can have
the benefit of lower transaction cost and shorter start up time.

• Under this Scheme, 100 % tax incentives are provided under Section 80 IA
of the Income Tax Act, 1961, and no other financial support is provided.
The undertaking is eligible for 100% deduction of profits and gains from the
industrial park for a period of 10 consecutive years in a block of 15
assessment years. The benefit can be claimed only after notification of the
project by Central Board of Direct Taxes.

• The deduction under the Scheme is applicable for any undertaking which
develops, develops and operates or maintains and operates Industrial
park/Growth Centres/Industrial Model Towns for the period beginning on the
1st day of April, 1997 and ending on 31st day of March, 2006. Hon’ble
Finance Minister in his Budget speech on 28.2.06 has announced extension
of the scheme to projects developed upto March, 2009. Therefore the
scheme is under revision.

• As on date 173 proposals for setting up projects in different parts of the

country have been approved under the industrial Park Scheme (involving
investment of Rs. 16127.80 crores. Out of these 55 projects have
commenced operation. 95 projects are under various stages of
implementation and one project is not functioning. Approvals in respect of
22 projects have been withdrawan.

(Sashi Ranjan Kumar)

Deputy Secretary

JS (SRJ)
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D/o IPP, I.D. Note No. 3/1/06-ID dated April 10, 2006