What is the meaning of “Category of Talukas” and list of such talukas under industrial policy 2020

Focused approach for balanced regional development

Balanced regional development is quintessential to the growth agenda of the government. It can be achieved by promoting industries in lesser developed areas which will thereby facilitate optimal utilization of natural and human resources available in that particular region. Balanced regional development supports dispersal of industrial employment, reduction of disparity in per capita income across regions and prevents concentration of industries in a few centers or cities.

Therefore, special enhanced incentives are being provided in the policy to encourage enterprises to invest in industrially less developed areas. Enhanced package of incentives will be provided on the basis of Taluka Categories for manufacturing and service enterprises. This would in turn promote local job creation, infrastructure redevelopment and thereby give an overall thrust to the local economy of these areas.

Incentives to MSMEs will be provided in terms of Capital and Interest Subsidy on term loans based on the category of talukas. As per the revised definition of MSMEs by Government of India, enterprises investing upto INR 50 crore in Plant & Machinery and turnover upto INR 250 crore have been categorized as “Medium Enterprises”. Incremental incentives will be provided to these Medium enterprises.

Subsidy is classified on the basis of Category of Talukas due to following intentions of policy makers:

• Growth agenda of the government
• Optimal utilization of natural and human resources available in that particular region
• Reduction of disparity in per capita income across regions
• To encourage enterprises to invest in industrially less developed areas
• Promote local job creation
• Infrastructure redevelopment
• Overall thrust to the local economy of these areas

The all 33 districts, all 251 Talukas and Municipal areas are classified in Three Category. It was decided to extend graded incentives, looking to the backwardness of talukas. 119 talukas are Industrially less developed  and more backward talukas which is kept under Category I  Talukas. 76 Talukas which are medium development  in industry is Classified as Category II Talukas. And Those 56 Talukas which are very well developed in Industry and all municipal areas are classified as Category III Talukas.

List of Talukas as per categories is as under:

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