Saved Bookmarks
| 1. |
Briefly explain any four common incentives to attract small scale industries in rural area by the government. |
|
Answer» (a) Land (b) Power (c) Water (d) Finance Detailed Answer : The incentives provided by the government are as follows : (a) Land : Developed plots are offered by every state for establishing industries. (b) Power : Some states supply power at a concessional rate of 50%, while some give it free of cost during the initial years. (c) Water : Water is either supplied at 50% concession or is totally free for a period of 5 years. (d) Finance : Small business units are offered loans at a very low rate of interest, i.e., 10 to 15% subsidy is given for building capital assets. (e) Sales tax : Exemption from sales tax is extended by some states for a period of 5 years while all union territories provide full exemption from sales tax. It is also known as Value Added Tax (VAT). (f) Raw material : Units located in backward areas get preferential treatment in the matter of allotment of scarce raw materials like cement, iron, steel, etc. |
|