In view of an inordinate delay in the proposed new industrial policy, industries in Madhya Pradesh have renewed their demands pertaining to more facilities.
A high-level Confederation of Indian Industry (CII) delegation called on Chief Minister Shivraj Singh Chouhan recently and demanded making the environment more conducive to industrial growth through proposed industry policy. The delegation drew the CM’s attention on value addition in agriculture, skill development and improve quality in education and demanded him to make proper provisions in the forthcoming industry policy. It also demanded faster implementation of the new industrial policy.
MP Association of Cotton Processor and Traders’ has also demanded more sops in the new policy; low power tariff for ginning and processing mills, grant and subsidies to value addition for cotton processing units, and yarn manufacturing units. Similarly packing units have said they want a level playing field in terms of taxation.
Although the CM has reportedly assured the industry to incorporate maximum number of suggestions in the policy and a meeting in January, the policy is unlikely to come before February as Panchayat elections are in process and will be over by month end.
The policy is delayed as the department of industry has conflict in opinion among officials, the industry minister and various industrial organisations. The new policy will curtail down investment incentive and grants to certain industries.
“The policy draft is ready but it is in hands of the industry minister,” a well placed source in the department of industry said. It is proposed to pare investment promotion incentives under various provisions of the existing Industrial Promotion Policy 2004,” The source said and added, “... certain facilities offered on fresh investment to industries are likely to be withdrawn in the new policy.”
Reportedly in lieu, the industrial units will get sops on diversification, expansion and technical up-gradation provided they make an investment of 30 per cent of the existing investment or Rs 50 crore (whichever is less).