State Policy

The State Government proposed a new industrial policy in 2005, the highlights of which are mentioned in the subsequent section. The State Government recognises infrastructure as a key facilitator of economic development. The state proposes to adopt an integrated approach to develop industrial and supportive infrastructure. The Industrial Policy aims to encourage private sector participation in development of infrastructure.

The objectives of the Industrial Policy, 2005 are as follows:

• To re-establish industry as a key driver of economic growth

• To create wealth for the residents of the state and improve the quality of life

• To generate employment and entrepreneurial opportunities across all sectors of the economy

• To facilitate spatial dispersal of economic activities particularly in economically and socially backward regions of the state

• To ensure sustainable development through investment in key sectors of the economy

Keeping in view the importance of granting fast track clearances and approvals for the industrial projects, the State Government aims to introduce an Industrial Promotion Act and formulate rules to make it mandatory on the part of various departments and authorities to provide clearances within a fixed time frame.

The State Government aims to give special attention to the development of infrastructure to support development of the IT/ITES sectors. Apart from public sector investment, investment in the private sector and public-private partnerships are being encouraged in setting up technology parks and other supportive infrastructure and services.

In order to encourage investment in the IT, ITES, communications, biotechnology, genetics, robotics and other frontier technologies, the State Government has enlarged the scope of the scheme on IT parks. The Department of Information Technology is to be the nodal department to receive and process all proposals for setting up technology cities/parks.

The State Government is committed to provide good governance that ensures transparency, reduction in transaction costs, efficiency and citizen centric delivery of public services. With these objectives an e-Governance roadmap for implementation in a fixed time frame is to be prepared. Modernisation of administrative processes, electronic delivery of services, e-procurement, convergence of delivery points and citizen access to public information are to form part of this roadmap.

The State Government aims to constitute a Steering Committee and Grievances Redressal Committee to co-ordinate the activities of various departments involved in the industrial development of the state and to handle issues which create bottlenecks in the process of industrialisation.

The State Government accords highest priority to the development of human resources. Strategies are to be adopted to enable residents to take full advantage of employment opportunities. A detailed scheme is proposed incorporating role of industry in deciding curriculum and in management of ITIs, polytechnics and engineering colleges.

Special curriculum is to be evolved to produce a job oriented workforce for availing opportunities in the services sector. The State Government aims at organising Entrepreneur Development Programmes to help youth set up their own ventures. The role of employment exchanges is to be recast to meet the requirements of industry.

Development of Small and Medium Enterprises (SMEs) sector

The Government has set up an SMEs Renewal Fund for technology upgradation, creation of quality consciousness, promotion of branding and adoption of improved management practices. The State Government proposes to set up a Centre for Competitiveness to assist the small and medium scale enterprises to reap benefits of new technology, providing technology information services, consultancy & advisory services in agri-food processing and biotechnology sector. The State Government is encouraging the existing small scale industrial units to undertake modernisation and/or technology upgradation to meet the challenges of the WTO regime.

Scheme of Incentives and Concessions

In order to attract domestic as well as foreign direct investment and for dispersal of industry to backward areas, the state aims to provide following incentives to the new industrial units:

• Incentives for mega projects in backward areas

• Incentives for Small Scale Industries in backward areas

• Incentives for Exporting Oriented Units (EOUs)

• Incentives for food processing industries

The new scheme of incentives are applicable to units in commercial production after the commencement of this policy. However, export incentives shall be available to existing units as well. Special priority will be given for release of electric connection to mega projects, 100 per cent EOUs, IT industry and FDI project.