A comparative status on State Government Incentives for Mega Projects has been provided for the States of Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh and Maharashtra.
· Mega projects have been defined differently for the different states in terms of the quantum of investment. It varies from as low as Rs 25 crores in Madhya Pradesh, to Rs 250 crores and above in Andhra Pradesh and Karnataka. The benchmark is Rs 500 crores and above in Maharashtra to Rs 1000 crores and above in Gujarat. Some states have in addition attached a clause on employment to be generated through these projects.
· Customised benefits and tailor made packages for Mega Projects have been assured by all the States.
· Incentives provided range from rebates in land cost to assurances of provision of land, exemptions in electricity duty, reductions or exemptions in stamp duty and registration fees, exemptions from entry tax, interest free loans on VAT, industrial promotion and capital subsidies and special incentives for setting up industries in areas with the lowest human development index.
· Gujarat assures customized and tailor made packages for mega projects which is to be decided on a case to case basis. Specifics have not been spelt out under the various incentive heads separately.