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Dehradun, September 12
After announcing the reimbursement (exemption of Value Added Tax) on the sale of self-produced goods by the newly set up manufacturing and production industries as part of the Special Integrated Industrial Policy (SIP) for hill and remote areas, the Industries Department has no funds to pay towards the subsidy.
To spur industrial development in the hill areas of the state,the Uttarakhand government had announced the reimbursement scheme in 2008 and after the new Congress government took over, the Industries Department was asked to pursue the matter on a priority basis. Accordingly, the Directorate of Industries prepared a budget of Rs 10 crore for reimbursing the manufacturers, out of which the Industries Department thought it fit to sanction only Rs 3crore for repayment of VAT, out of which only Rs 1 crore has been allocated.
“Things have come to such a pass that there is more demand than the supply. If there is no timely reimbursement of VAT, the small manufacturers would not be able to take the full benefits of the incentive announced as part of the Special Integrated Industrial Policy. Small manufacturers are basing all their calculations on the timely payment of incentives,” said Pankaj Gupta, president of Industries Association of Uttarakhand.
The objective of the scheme is to provide support to the manufacturing units to be set up in the hill regions. The scheme came into operation with effect from April 1, 2008, and shall remain in operation till March 31, 2018.
According to the scheme, the maximum limit of reimbursement of the VAT subsidy for the enterprises classified under Category A shall not be more than 90 per cent and the enterprise classified under Category B districts shall not be more than 75 per cent of the total VAT payable by them.
Beside, the government has also not issued any order on the payment of VAT to the commercial wing by the Industries Department. "This new arrangement was introduced as part of the amended SIP. The procedure for sanctioning of disbursement for reimbursement of claims of VAT is still awaiting sanction,” said Gupta.
The Special Integrated Industrial Policy covers the entire territories of district Pauri Garhwal, Tehri, Almora, Bageshwar, including the development blocks forming the hill areas in district Dehradun and Nainital, except the territories comprising Doiwala, Vikasnagar, Sahaspur and Raipur blocks in district Dehradun, and the territories comprising the Haldwani and Ramnagar blocks in district Nainital. 


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