The clause that was deleted had come into effect from July 25, 1991. It prohibited the setting up of factories within 25 kilometers of the urban area limits of cities and towns having a population of more than 900,000 in the 1991 census.
However, electronics, information technology and other non-polluting industries were exempt from the now-deleted clause. Moreover, factories inside industrial parks set up before 24 July, 1991, were also allowed to function.
The clause was deleted as it was creating "unnecessary hurdles" in setting up of industries. "Since grant of industrial licence is on the basis of recommendations of the state government and clearances from the State Pollution Control Board and Ministry of Environment and Forests, the existing procedure of granting licence can be dispensed with," a government release said.
"The environment ministry as well as state level pollution clearances are adequate to ensure that industrial units do not come up within urban limits. Also, with the urban infrastructure already under constraint, no factories would want to come up inside or next to cities," said a Delhi-based industrial policy expert.
The Cabinet also approved setting up a Land Ports Authority of India for overseeing the construction, management and maintenance of Integrated Check Posts (ICPs) on the land borders of the country for regulation of trade and transit.
A draft Bill called Land Ports Authority of India Bill, 2008, will be introduced in Parliament. India already has functional ICPs on borders with Pakistan, China, Nepal and Bangladesh. The move is likely to facilitate border trade with neighbouring countries.
Among other decisions, the Cabinet gave its nod for introduction of