New industrial policy approved; huge discounts for new ventures

• The goal is more investment and employment
• Government will provide 25% of monthly salary in big enterprises

THIRUVANANTHAPURAM: The Cabinet meeting approved the Kerala Industrial and Commercial Policy, which includes proposals for the government to provide 25 percent of the monthly salary (up to Rs. 5,000) to large enterprises that provide permanent employment to more than fifty percent of local workers. The new trade policy is aimed at maximizing employment and industrial growth by attracting more investment.

Industries Minister P Rajeev said in a press conference that the policy has been formulated by considering each sector separately and ensuring maximum benefits. If the current financial year was an entrepreneurial year, we are trying to make the next one an investment year. The Minister also said that a special team under the leadership of the Principal Secretary has been appointed to implement the policy.

The process of revising the outdated rules and regulations will be completed by May. The policy includes seven main objectives namely entrepreneurship, infrastructure promotion, hi-tech technology, skill development, business-friendly environment, Kerala brand, and priority sectors. Industries Department Principal Secretary Mohammad Haneesh, Industries and Cashier Principal Secretary Sumanbilla, KSIDC MD, and Industries Department Director Harikishore also attended the press conference.

Key plans and concessions

1. Government will reimburse 20 percent (up to Rs. 25 lakh) of the cost incurred for manufacturing activities using artificial intelligence and data mining & analysis initiatives.
2. Electricity tax exemption for 5 years for Micro, Small, and Medium Enterprises (MSMEs).
3. Exemption in stamp duty and registration for women, SC/ST entrepreneurs.
4. Refund of 100 percent state GST share of fixed capital for non-MSME enterprises for five years.
5. Rs 7500 of the monthly salary of transgender workers will be refunded to the employer for one year.