Madhya Pradesh government order said that industrial units from thrust sector in Borgaon, Maneri and Purnea areas will be entitled for a record 250 per cent sales tax exemption for seven years. The deferment of payment of sales and commercial tax will be for 300 per cent for a period of nine years.

There will be no capping on quantum of tax concessions for thrust sector industries set up with the minimum specified investment in plant and machinery. Concessions will also be available on finished products, byproducts, waste products, new materials, incidental goods and packing material.

State capital investment subsidy has been made available to small-scale industrial units in cooperative sector with a minimum investment of Rs 1 crore in plantand machinery and a membership of a minimum of 100 persons.

In advanced districts, such subsidy will be 5 per cent of fixed investment with a ceiling of 100 per cent of the incentives which it can avail of. In backward A, it will be 7.5 per cent with a ceiling of 150 per cent; in backward B, subsidy will be 10 per cent of fixed capital investment with a ceiling of 250 per cent; in backward C, it will be 10 per cent of fixed capital investment and a ceiling of 300 per cent. In growth centres, the subsidy will be 15 per cent of fixed capital investment with a ceiling of 500 per cent.

Madhya Pradesh, which comes under the BIMARU (financially weak Bihar, MP, UP and Rajasthan) category, has also granted additional concessions which will be extended for five years. Units in growth centres Borgaon, Maneri and Purnea will be entitled to get these additional sops for two years while units set up by women entrepreneurs, persons belonging to SC, ST and backward classes will be get it for one year. New industrialunits in cooperative sector with an investment of at least Rs 1 crore in plant and machinery will be entitled to concessions for three years.

The MP government has also offered special incentives for 100 per cent export-oriented units set up by non-resident Indians. These units will be entilted to get 250 per cent exemption from payment of commercial tax for 11 years while the deferment will be 300 per cent for 13 years. Additional investment on expansion by existing units will be eligible for commercial tax concessions as available for new units.

This facility is available to units with investments of more than Rs 10 lakh and is conditional to the extent of additional investment being made.