State Cabinet approves modifying KALIA scheme to accommodate 10 lakh more small, marginal farmers, share croppers

Surjit kumar Dhal, Bhubaneswar, Feb 27: The State Cabinet Tuesday approved modifying “Farmers Welfare-Krushak Assistance for Livelihood and Income Augmentation (KALIA)” scheme to accommodate over 10 lakh small and marginan farmers and Sharecroppers.

                The Cabinet at its meeting here chaired by Chief Minister Naveen Patnaik approved the proposal as per the announcement of the Chief Minister that no eligible beneficiary will be left out, Chief Secretary Aditya Prasad Padhi said at the briefing after the meeting.

“The cabinet approvec that an additional 10 lakh small farmers/ marginal farmers/ actual cultivators (share croppers)/ landless agricultural households be included in the KALIA scheme during 2018-19, so that no one who is eligible will be left out,” he added.

The Cabinet also decided to provide the support to cultivators for cultivation under the scheme to purchase agricultural inputs prior to beginning of the season– during the first quarter of the financial year, at any time from April 1 onwards for the Kharif season and at any time after September 1 of the year for the Rabi season instead of only on AkshyaTrutiya and Nuakhai, Padhi said.

The Chief Secretary said the Cabinet also decided that Industrial units in IT/ITES/ESDM Sectors which were receiving or are eligible to receive net VAT reimbursement under ICT Policy 2014 , shall be eligible for net SGST reimbursement for balance period out of eligibility period from the date of commencement of production. New Industrial units in IT/ITES/ESDM Sectors shall be eligible for reimbursement of 100 % (hundred per cent) of net State GST (SGST) paid for a period of five (5) years from the date of starting of commercial production on or after July 1, 2017 limited to 100 per cent of fixed capital investment provided that the SGST reimbursement will be applicable only to the net tax paid, after adjustment of input tax credit against the output tax liability.

Existing Industrial units in IT/ITES/ESDM sectors taking up  expansion, modernization or diversification as shall be eligible for reimbursement of 100 per cent of net State GST (SGST) paid for a period of five (5) years from the date of commencement of production on or after July 01, 2017 subject to the condition that it shall be applicable only on increased production over and above the existing installed capacity limited to 100 per cent of additional cost of plant and machinery acquired for taking up Expansion/Modernization/Diversification in a tapered manner provided that the SGST reimbursement will be applicable only to the net tax paid, after adjustment of input tax credit against the output tax liability, he said.

He said the ICT Policy 2014 was published by Government in Electronics & IT Department on 04.01.2014 with an objective to promote Odisha as an attractive investment destination for IT/ITES/ESDM Companies by providing them with a congenial, industry friendly and proactive industrial climate with pool of trained manpower available for entrepreneurs at affordable cost.

The Government also brought out the Industrial Policy Resolution (IPR) in 2015 in which IT/ITES/ ESDM is notified as a Priority Sector.

Padhi said there was provision of reimbursement of VAT and exemption of Entry Tax in the ICT Policy. Due to implementation of GST in the State w.e.f.01.07.2017, provisions like reimbursement of net VAT under para-6.11 of the Policy and Exemption of Entry Tax under Para 6.16 need necessary amendment.

Further, Incentives as envisaged in this Policy shall not be applicable to an Industrial unit in IT/ITES/ ESDM sectors if the similar incentives are availed under any other Policies of the State Government.

Padhi said that the Cabinet approved the Revised Special Incentive Package Scheme (RSIP) to attract investments in Electronics Systems Design and Manufacturing (ESDM) Sector to Odisha.

The State Government is according high priority to promotion of Electronics Systems Design and Manufacturing (ESDM) Sector in the State and to keep pace with the growth in ESDM Sector and to attract investments in Electronics Systems Design and Manufacturing (ESDM) Sector to Odisha, the State Government formulated a Special Incentive Package Scheme on September 4, 2015 by giving additional incentives on Capital Investment Subsidy, Entry Tax, Human Capital Investment Subsidy, SalesTax & VAT, Power Incentives, Water Incentives, Interest subsidy etc over and above the provisions made in ICT Policy-2014, Padhi added.

The eligibility criteria for such Large & Mega Investment Projects to be covered under this Scheme was fixed with minimum investment project value of Rs.200 crore and to generate an employment opportunity of minimum 500 person at the time of starting of production and create an employment opportunity of more than 2000 persons in a span of 5 years to avail the capital investment subsidy, the Chief Secretary said.

In view of inadequate response from industries for investment in ESDM sector the State Level Single Window Clearance Authority (SLSWCA) and the Inter-Ministerial Committee recommended to re-examine various criteria of Special Incentive Package Scheme, he said adding, in the meantime Goods and Services Tax (GST) has been rolled out across the Country and therefore the incentives provisions notified under Special Incentive Package Scheme like exemption from Entry Tax reimbursement of VAT etc needed amendment.

“Now, the State Government has decided to formulate the Revised Special Incentive Package Scheme (RSIPS) as stated below applicable to the first twenty such prospective new Large & Mega ESDM units and Expansion of Capacity/modernization and diversification of existing ESDM units which required to have investment intents with minimum investment of Rs 50 crore and generate an employment  of  minimum   100   persons  at  the  time  of  starting   of commercial production,” he said.

The cabinet also approved Dynamic  Assured  Career  Progression   (DACP)   Scheme  for  Medical Officers of Odisha Medical and Health Services (OMHS) Cadre to encourage the members of Medical and Health Services Cadre and to bring about greater commitment and dedication, said the Chief Secretary.

                Among other proposals, it also approved framing of the Odisha Government College Physical Education Teachers (Method of Recruitment and Conditions of Service) Rules, 2018 to attract meritorious and physically fit candidates for appointment of P.E.Ts, State Govt, amendment to Wildlife (Protection) (Odisha) Rules, 1974 for expeditious payment of compassionate grant to the victims and legal heir of the victims in respect of injuries and human kills respectively by the wild animals, the Chief Secretary added.