The Union Government announced on June 3, 1988 further liberalisation of the industrial licensing system and also provides incentives to give a stimulus to industrialisation of backward areas.
Non-MRTP and non-FERA companies will not be required to obtain industrial licenses under IDRA for projects involving investment in fixed assets up to Rs.50 crores if they are located in Centrally declared backward areas and upto Rs. 15 crores if located in non-backward areas.
For the development of backward areas, the Government intends to establish 100 growth centers throughout the country over the next five years. Each growth centre has been allocated Rs.25 crores to Rs. 30 crores for creating infrastructual facilities, particularly in respect of power, water, telecommunications and banking.
To promote industrialisation in backward areas, new industrial undertakings established in declared backward areas, are entitled to the income tax relief under Section 80 HH of the I.T. Act.
ADVERTISEMENTS:
Government is dead set to promote computerisation and electronics along with expansion of communications. Any obstacles in this regard in the form of MRTP and FERA regulations are sought to be removed.