Q.What are the incentives provided by the Government for industries in backward and hilly areas?

To attract industry to backward, tribal and hilly areas, the government offers a package of concessions covering land, utilities, taxes, materials and finance. …

Recognising that developing backward, tribal and hilly areas is a long-term task, the government offers a package of incentives to attract industries to such areas:

1. Land. Every state offers developed plots for setting up industries; some states charge no rent in the initial years, and some allow payment in instalments.
2. Power. Supplied at a concessional rate of 50 per cent, with some states exempting such units from payment in the initial years.
3. Water. Supplied on a no-profit, no-loss basis, or with a 50 per cent concession, or with exemption from water charges for a period of 5 years.
4. Sales tax. In all union territories, industries are exempted from sales tax, and some states extend the exemption for 5 years.
5. Octroi. Most states have abolished octroi.
6. Raw materials. Units in backward areas get preferential treatment in the allotment of scarce raw materials such as cement, iron and steel. …