Ranchi, March 22: In a boost for industries in the state, a high-powered committee chaired by chief secretary S.K. Choudhary today decided to provide capital subsidy benefits to the tune of over Rs 20 crore to five mega industrial units.

The capital subsidy will be given against the VAT reimbursement scheme.

The industries which are set to benefit from this largesse are Seraikela-Kharsawan based Neelanchal Iron & Power (Rs 5 crore), Adityapur-based Ramkrishna Forging Limited (Rs 1.46 crore), Ramkrishna Forging (crown wheel division) (Rs 3.12 crore), Adhunik Alloys & Power (Rs 5.8 crore) and Bokaro-based Inox Private Limited (Rs 5.7 crore).

Industry secretary A.P. Singh, who is also one of the members of the chief secretary-headed committee, told The Telegraph that the benefits were being given according to the industrial policy which recommends capital subsidy plus VAT reimbursement subsidy to the tune of 75 per cent in case of new units and up to 60 per cent in case of existing industrial units on expansion/modernisation mode.

Singh said all the units which are expected to benefit from today’s decision would be provided the money in the 2011-12 fiscal as the funds are not earmarked for the purpose in current fiscal.

Earlier, the mega industries were not covered under the VAT reimbursement scheme. In September 2010, the state industry department framed rules for inclusion of those units which invest over Rs 50 crore capital and qualify to be called mega units.

Till now, only one mega sector unit, Jamshedpur-based JMT Auto, had qualified for VAT reimbursement subsidy to the tune of Rs 80 lakh.

Today’s meeting, chaired by Choudhary, was attended by the industry secretary, finance secretary, commercial taxes secretary and director (industries).

At the meeting, only those applications for VAT reimbursements were considered whose verifications had already been carried out by the commercial taxes department.

The fate of other units like Bihar Caustics, Lafarge Cement, Jharkhand Ispat, ACC, and Kohinoor Steels Private Limited, were not decided due to several technical reasons.

The the file will now be sent to chief minister Arjun Munda for his nod. A nod from the cabinet may also be required.