The Industrial Policy Resolution (IPR), 2001, of the Orissa government proposes creation of a Foreign Investors Forum (FIF) under the chairmanship of the chief minister to facilitate flow of overseas investment into the state.
The proposed forum will have representation of foreign investors and will work in close coordination with the Foreign Investment Implementation Authority (FIIA) of the Government of India.
It may be noted that Orissa ranked third after Maharashtra and Gujarat in the volume of foreign investment proposals lined up for implementation in the country a couple of years back. But, due to the absence of a proper piloting body to pursue and facilitate implementation, the projects could not take off.
The IPR, which is in the draft stage and is being vetted by the state finance department before being readied for placement before the Cabinet, has listed a slew of measures to speed up the industrialisation process in the state.
To this effect, it has suggested establishment of an Industrial and Infrastructural Advisory Board under the chairmanship of the chief minister. The industry minister will be the vice-chairman of the Board, which will have prominent industrialists and senior government officials as members. The Board will advise the government to ensure timely steps for rapid industrialisation. It will meet at least twice a year.
The IPR also recommends that an Industrial and Infrastructural Advisory Committee (IIAC) be set up under the chairmanship of the chief secretary to give speedy clearance to fast track as well as other industrial projects requiring inter-departmental references.
However, the projects ratified by the chief minister will not require further approval of any department or agency and will stand cleared automatically, it observed.
The draft IPR lays emphasis on development of handicraft sector, which has potential for earning good revenue, particularly forex, for the state but has not contributed much to the economy because of its ailing health. To give the sector a boost, the document has identified 51 handicraft items for total tax exemption.
These items, including artistic footwear, silver filigree, costume jewellery, palm leaf decoratives, teracotta, brass and bell metal, theatrical dress, dhokra craft, stone carving, wood carving, tribal jewellery, wooden carpet weaving, wooden inlay, yarn fabric and garments made out of khadi including polyvastra and handmade paper.
While doing so, the IPR has derecognised 52 industrial units from their favoured status and proposed withdrawal of benefits to them. The units likely to be hit by such suggestions included rice mills, printing press, oil mills including oil processing, filtering, colouring and decolouring, refining, iron and steel processors, hatcheries, piggeries, rabbit and broiler farming, guest houses and restaurants.
The new IPR encourages patent registration by the industrial units and promises to provide assistance for the purpose. It also espouses the need of quality products and assures that assistance will be given to the units aspiring to get quality certification from Bureau of Indian Standards (BIS) and other internationally recognised bodies.
