Chief Minister Mulayam Singh Yadav Thursday announced a new tax on industry to mobilize resources.

The cabinet has decided to levy a one percent tax on all industries with an annual turnover of more than Rs.5 million, and an ordinance to this effect is in the pipeline, official sources said Thursday.

"We have to mobilize resources, and this tax will net an annual revenue of about Rs.1.5 billion ($34 million)," a government official told.

According to the industries department, 225,000 units out of the state's 461,000 industries record a turnover of more than Rs.5 million, deeming them eligible for the tax.