State bodies at odds over MP industrial policy changes

Amendments expected to be submitted by June 15

Differences between the Madhya Pradesh State Electricity Board and the industry department are delaying amendments to the Industrial Promotion Policy 2004.

The differences relate to exemptions on power dues and interest payments on them in the case of a sick unit takeover by the Board of Industrial and Financial Reconstruction. The Shivraj Singh government had proposed amendments to the policy to make the investment climate better.

The sub-committee, which working on the policy, is scheduled to submit its draft by June 15. Earlier, the committee, headed by state Industry Minister Babulal Gaur, was to submit the proposals by April 30. Finance Minister Raghavji and Power Minister Kailash Vijayvergiya are also part of the committee.

The sub-committee had earlier sought suggestions from various associations but has now decided to organise a symposium in Indore. The symposium, which is to be held in May or June, will help the committee interact with various associations and get feedback after the final draft is presented.

The department of industries will organise a seminar, in association with the Federation of Indian Chambers of Commerce and Industry (Ficci), to interact with small and medium enterprises and get suggestions on the policy, on May 5.

"The associations have made the same suggestions which had earlier been rejected by the then senior officials and chief minister Uma Bharti. There inclusion will not serve the purpose since the suggestions are of an individual nature," an insider said.

Bharti and her team had also organised a similar meet with industrial associations to finalise the draft . "As many as 44 associations had made suggestions symposium," said an insider.

"This time the energy department is not agreeing upon certain concessions which are offered in case of take over of sick units," the insider added

In case of takeover, the present investment promotion policy offers a waiver on penalty and interest if the new owner pays the liabilities in a lumpsum.

The energy department does not want to waive off any amount to industry. "A meeting will take place today (Thursday) evening to discuss the issue. The chief secretary has said the matter to put before state regulatory commission," an insider told Business Standard.

The sub-committee has also sought comments from all departments by May 2. However there is no clue as to when the amended policy will be put into practice.