The new industrial policy may not offer hefty sops.
At a time when various states are jostling for big-ticket investments by offering sops to investors, Gujarat has yet again decided to stay away from the rat race.
The new industrial policy, which may come into effect from October this year, may not offer large incentives.
The Gujarat chief minister Narendra Modi is learnt to have told officials at the last review meeting that the new industrial policy will not offer large incentives.
“The chief minister has instructed officials of the industries department to remove provisions related to offering huge capital incentives from the recommendations. He also advised against categorising regions as backward and developed regions,” said a senior official of the state industries department.
The move may delay the announcement of the new policy, believe many.
As many as five task forces submitted their recommendations for different sectors. These task forces comprising government officials, experts and representatives of the industry, set up for new industrial policy have made the recommendations on the basis of suggestions received from various industrial bodies and industrialists.
The task force has recommended several sops and incentives to promote large industries as well as small, medium and micro enterprises across sectors.
Some of the recommendations made by the task forces include incentives on electricity duty and stamp duty, special emphasis on cluster development, provision for special ‘land bank’ for industrialists and a mechanism to pave way for smooth port-led development.
The task force has also recommended several incentives for MSMEs such as graded interest subsidy for all MSMEs, full interest subsidy for micro and 5 percent interest subsidy for small & medium enterprises with a cap of Rs. 25 lakh per annum for a period of five years.
In addition to interest subsidy, MSME in 30 ‘undeveloped talukas’ identified by the state government will be provided land at concession rates in industrial estates, the task force had suggested.
The task force also recommended that support to auxiliary industries for value addition should be offered. It has suggested that large units producing raw materials and promoting auxiliary units to be encouraged to develop industrial park for accommodating minimum 30 units and 20 per cent assistance of infrastructure cost excluding land cost with a limit of Rs. 1 crore be given.
More, SMEs in the park will be provided 10 per cent investment subsidy with a ceiling of Rs. 20 lakh in addition to interest subsidy, the task force recommended.
However, with the chief minister directing the department to do away with the incentives, a new set of recommendations are being prepared, which will be tabled before the chief minister’s office shortly.
“The idea is to ensure that the development is uniform, and not just benifiting industries,” said the official.
