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The contribution of power outages as a major factor constraining production is described in the next section. The most popular incentive asked for is sales tax exemption on new
technology intensive products, followed by duty free imports of machine tools for the sector. Other innovative proposals include establishment and access to a technology
upgradation fund with SMEDA, establishment of centre for
RD in the auto parts sector, possibly with funding from the Export Development Fund and access to training programmes in computer assisted design and production through EDB/PIM.
These measures could help, in particular, in achieving deletion targets under the AIDP.
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