In 1971, UT was declared as an industrially backward area by Government of India and increased the cash subsidy to 15 to 25% for the industrial units on their capital investment which resulted in the speedy industrial development. The scheme was however terminated from 30 September 1988. Sales Tax Act was implemented from January 1984 until 1998 under which industries enjoyed sales tax exemption for 15 years from the start-up date. VAT was introduced in 2005. At present, the newly established units get Central Sales Tax exemption which will continue until 2017.