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The state cabinet approved a proposal allowing industrial units in backward areas, which enjoy sales tax exemption, to shift to the value added tax (VAT).
As the units were exempted from the sales tax, they were not allowed to claim the credit on VAT which they paid on raw material and services.
The industry associations demanded that they should be allowed to shift to VAT regime. The decision will come into force from July 1, and the units will be given 100 per cent credit on raw material and fuel.
The cabinet also cleared the proposal to computerise all the 14 state run medical colleges and 19 hospitals attached to them.
Announcing the decision CM Vilasrao Deshmukh said that initially the project would be implemented at Grant Medical College and J J hospital and after seeing the result it would be implemented in all the medical colleges and hospitals.
This project will be implemented by Amrita Technologies and Hewlett Packard at the cost of Rs 180 crore.
This project will improve the administration of the state-run hospitals and will provide patients access to modern facilities such as telemedicine. It wilt also help students and doctors in effective research, said Deshmukh.
