Govt wants to put aside funds for infrastructure development

Following constant complaints from industrialists about lack of basic infrastructure in the areas where they plan to invest,the Uttar Pradesh government is planning to set aside a specific percentage of funds received from tax on entry of goods which can be used for infrastructure development through Department of Infrastructure and Industry.

According to sources,the decision would mean ready availability of about Rs 300-400 crore for utilisation on the basis of priority in investment areas and could ease creation of infrastructure like road,separate electricity feeders,public amenities in proposed IT parks and special economic zones in the state. The collection of entry tax on goods and its utilisation is governed by the Uttar Pradesh Tax on Entry of Goods into Local Areas Act,2007 and its rules which say “the entry tax levied and collected under this Act shall be credited to the Uttar Pradesh Trade Development Fund and shall exclusively be used for facilitating trade,commerce and industry”. The fund is managed by the Uttar Pradesh Trade Development Fund Management Committee.