With 99-yr land lease offer, Arunachal fast-tracks plans to woo investors

With a slew of measures including relaxations, exemptions and subsidies in its new industrial policy, the country’s frontier state in the east hopes to dump the dubious distinction of the state with the least number of registered manufacturing units.

The state Government also plans to allow 100 per cent equity ownership of an industrial unit to any entrepreneur. The current practice is that an investor from outside the state has to take a trading licence in the name of a resident of Arunachal Pradesh to set up any enterprise.

“We are set to bring in these changes through a new industrial policy which will come into force in a month’s time,” said Arunachal Pradesh Chief Minister Dorjee Khandu.

The Arunachal Pradesh government also plans to grant 99 per cent exemption from Value Added Tax (VAT) to industries. “This exemption will apply to both the entry of actual raw materials, plants and machineries and sale of finished products in the local market for a seven-year period from the date of commercial production,” said a senior state government official.

In addition, basic requirements like getting a regular electricity connection from the government’s power grid or wanting to set up a captive power generation plant will entitle investors to get subsidies worth 50 per cent on the equipment cost or Rs 10 lakh, whichever is less.

Further, investors having a Detailed Project Report (DPR) sanctioned from either a bank or other financial institutions for their projects will get a government subsidy on the cost incurred on getting the DPR prepared.

To enhance comfort levels of potential investors, the state government also plans to give preference to industries located within its borders while making procurements for its departments. “Government departments and other organisations will give preference to products manufactured within the state while procuring. Further, the state...