The government has approved 173 industrial parks for claiming tax exemption with retrospective effect from April 1, 2005, Minister of State for Industry Ashwani Kumar said in Lok Sabha on Tuesday.

"As per the Industrial Park Scheme, 2002, the Government of India has granted approvals to 173 Industrial Parks for claiming tax exemptions under Section 80 IA of Income Tax Act, 1962 during the period from April 1, 2005 to date," Kumar said in a written reply to a query.

The junior industry minister said 232 live approvals for industrial parks have been granted from April 1, 1999 till date involving 17,200 industrial units with an investment of Rs 16,924 crore.

"The Industrial Parks have been able to achieve their objectives ... 198 industrial parks have since commenced their operation," the minister noted.

The government (Department of Revenue) had introduced the revised Industrial Park Scheme, 2008 to facilitate and incentivise setting up of industrial parks.

A 10-year tax holiday is granted to entrepreneurs for setting up industrial parks.

Some industrial parks have also been set up by the state government undertakings, he said.