|government today issued norms for setting up of National Investment and Manufacturing Zones (NIMZs) with host of benefits, including exemption from capital gains tax.|
There will be exemption from capital gains tax on sale of plant and machinery of a unit located in a NIMZ, the guidelines issued by Department of Industrial Policy and Promotion (DIPP) said.
The tax break will be granted in case of re-investment of sale consideration within a period of three years for purchase of new plant and machinery in any other unit located in the same NIMZ or another NIMZ, it said.
Besides, NIMZs will be eligible for Viability Gap Funding, which cannot exceed 20 per cent of the project cost.
As per the norms, the developers of NIMZs will be allowed to raise funds through external commercial borrowing (ECBs) for developing the internal infrastructure of the NIMZs.
Soft loans from multilateral institutions will be explored for funding infrastructure development in NIMZ, it said.
Assistance would be provided for negotiating non sovereign multilateral loans by providing back to back support, if necessary.
NIMZs are conceptualised as integrated industrial townships of at least 50 sq km (5,000 hectares) with state-of- the-art infrastructure.
Source: Business Standard