- (1.) X X X X "The Guzarish of the Minister for Industries, Commerce and Communications dated 15-11-1946 is sanctioned. Exemption from any form of taxation on the income for a period of 12 years from the date of starting of the factories is granted. The other two concessions he has asked for should be given and attempt should be made to establish and start these factories as early as possible."
(2.) The substance of this order was communicated to Messrs. Birla Brothers Limited and eventually an agreement was entered into on April 7, 1947 between the Government of Gwalior and Messrs. Birla Brothers Limited, which stated that in accordance with the orders of the Ruler dated January 18, 1947, it was hereby agreed to grant and accord the facilities, privileges, concessions and benefits hereinafter mentioned to the said company. These facilities, privileges, concessions and benefits in the agreement were three, namely - 1. provision for sufficient and adequate land or lands absolutely free of any cost, revenue or cess whatsoever, for the construction and erection of factory etc. for starting the industries mentioned in the agreement; 2. making of arrangements for the supply of adequate and sufficient quantities of suitable water, whatever available, for the above-mentioned industries on most concessional and suitable terms; 3. granting of exemption to the above mentioned industries and/or any concern or concerns promoted or started or to be hereinafter promoted or started for the establishment and starting of all or any of the above-mentioned industries from the payment of all taxes and/ or duties, in any form or nature whatsoever, on their income, profits, gains or business, levied or to be hereinafter levied in the Gwalior State, or any part thereof, for a period of twelve years reckoned from the date on which the factory or factories of the above mentioned industries has or have started working or starts or start working.
(3.) In consequence of this agreement, the company was started and actual production began some time in June 1949 so far as the weaving section for manufacturing cloth from artificial silk yarn was concerned. It may be added that the staple fibre section of the company started actual working on or about February 18, 1954. That is how the company came to be established and started working in what was the former Gwalior State in pursuance of the agreement of April 7, 1947.;