Bhopal, Apr 17: The state cabinet has decided to amend the provision relating to exemption in stamp duty under Incentive Policy for projects of power generation through non-conventional sources. Besides, several other important decisions were taken. At present, 50 per cent exemption in stamp duty would be given on the purchase of land for setting up project to generate power through non-conventional sources of energy but the concession would be withdrawn if such a project is not established on this land.
The cabinet has decided to add the words 'bank guarantee for 50 percent exemption in stamp duty would have to be submitted' at the end of this provision. This bank guarantee would be valid for 21 months for projects based on biomass and for 36 months for projects based on urban wastes. The bank guarantee would be confiscated against recovery of exemption amount if a project is not set up on the land for which exemption in stamp duty was granted. The cabinet also decided to repeal two provisions of the Incentive Policy. The provisions which have been deleted include exemption in commercial tax (entry tax or octroi) on non-conventional energy plants and other necessary material related to them as well as other tax like VAT which would be imposed in future. This decision has been taken in the context of the fact that VAT rate is four percent on equipment for renewable energy. This rate has been approved by the empowered committee of finance ministers of all the states. To include it in the tax-free list in Madhya Pradesh only would be against the unanimous decision of this committee. Therefore, this provision has been deleted.
Some provisions of Industrial Promotion Policy Action Plan (Amended 2007) were amended to make it more effective. As result of this the policy has become convenient and result-oriented. Now, mega projects of food processing projects would be provided land on concessional rates. Earlier, land to such units was provided free of cost. Under the extension scheme, taxation period of the existing industrial units has been amended. The state cabinet has amended the provision of giving free land to mega food processing projects under special incentive facilities and decided to give land to mega food processing projects on concessional rates. The state cabinet also decided to de-nationalize the remaining 171 roads in the state. Three years back in February 2005, the state government had decided in principle to wind up the Madhya Pradesh Road Transport Corporation (MPRTC).