Nath Comments On Infrastructure Investment Developments

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

18 February 2008

Kamal Nath, India's Commerce and Industry Minister on Friday spoke before the Parliamentary Consultative Committee Meeting of the Ministry of Commerce and Industry, on the subject of 'Industrial Infrastructure Development'.

Nath announced that: “It will be our endeavour to fine tune our strategies and develop a more holistic and integrated approach towards the development of infrastructure for Industry."

He indicated that the government has taken several initiatives to provide a fillip to the development of industrial infrastructure. Some of these initiatives, particularly the Industrial Infrastructure Upgradation Scheme (IIUS), can be seen as successful interventions.

The Commerce and Industry Minister went on to suggest that the primary responsibility for development of infrastructure rests with the State Government and State Industrial Development Corporations, providing basic infrastructure to industrial units by setting up industrial estates in self-contained geographical areas.

Most State Governments have set up industrial estates and the experience so far has been mixed. The Central Government also supplements the efforts of the State Governments through various schemes for the development of industrial infrastructure.

Speaking with regard to the Industrial Park Scheme, the Minister confirmed that income tax exemptions are available to infrastructure developers for any ten consecutive years out of fifteen years, beginning from the year in which the eligible projects commence operation. The response to this scheme has been good, he announced.

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