Provision of IPR-2001 for Handicrafts & Cottage Industries Sector

The State Govt. in IPR-2001 have declared a number of incentives for promotion of Handicrafts & Cottage Industries in the State. The major assistance provided are:-

i)          Sales Tax Exemption:- (Para 15.6 of Part-C)

            The finished products of all existing and new Khadi, Village, Handicrafts & Cottage Industries sold through approved sales outlets of authorised Cooperatives/Govt. agencies & recognised by KVIC/OKVIB/Coir Board/Handicrafts Corporation and DIC are exempted from payment of sales tax.

 ii)        Electricity Duty Exemption:- (Para 18.7 of Part-C)

            The Handicrafts & Cottage Industries having contract demand upto 100 KVA are exempted from payment of electricity duty for a period of 5 years from the date of availing power supply for production.

iii)       Patent Registration:- (Para 16 of Part-C)

            The State will provide assistance to artisans for patent and intellectual property right provisions @ 50% of the expenditures upto maximum of Rs. 5.00 lakhs.

iv)        Land:- (Para 18.1 of Part-C)

            Govt. land wherever available will be allotted for Handicrafts & Cottage industries at concessional rate.

v)         Cluster Approach for Artisan Crafts:- (Para 23 of Part-C)

            Selected existing Craft Clusters would be developed with involvement of Industries Associations, financing Institutions and NGOs. For this purpose, common facilities for quality improvement, technology upgradation, market promotion and skill development would be designed & implemented.

vi)        Marketing Support:-

            a)         (Para 24.3 of Part-C) Local Khadi & Village Industrial units including Handlooms and Handicrafts will enjoy a price preference of 5% over local large & medium industries.

            b)         (Para 24.8 of Part-C) Local Khadi, Village & Cottage Industries registered with the Directorate of Handicrafts & Cottage Industries, will be exempted from payment of earnest money and pay 25% of the prescribed security deposit while tendering to State Govt. depts. & agencies under its control.

            c)         (Para 24.10 of Part-C) State Govt. departments and agencies under the control of State Govt. will make prompt payment of dues of local Khadi & Village Industries in respect of goods purchased from them.