The cabinet on Tuesday sanctioned Rs 300 crore for giving subsidies, grants and tax exemptions to entrepreneurs who have made investments according to the Industrial Incentive Policy of 2006 and 2011.

“The government approved the industries department’s proposal to sanction Rs 300 crore for making reimbursements of various tax, duties, grants and subsidies to the investors,” cabinet co-ordination department secretary Brajesh Mehrotra told reporters in a post-cabinet meeting.

Mehrotra said the amount will be spent on the reimbursement of VAT and stamp duty, capital subsidies, electricity duties exemption, grants for purchase of generators, for setting up units of captive power generation and non-conventional sources of energy, for preparing detailed project report or getting ISO or similar certification or carbon credit.

These subsidies and exemptions were announced under the new industrial policy of the state government, which came into effect in July 2011.

The cabinet also approved the transfer of 17.62 acres of “gairmajarua” land (government plot) to Infrastructure Development Authority for construction of thermal power station at Kajra by private entrepreneurs, the secretary said. He added that the cost of land acquisition would be realised from the selected developer of the power plant and only after that the land would be transferred to the power firm.