In what is perceived to be a new year gift for industrialists in the state, Haryana government has approved the much-awaited ‘Industrial and Investment Policy-2011’ of the state.
The new policy has eased the norms for industrial investment. Most important, there has been easing of the land acquisition policy, with the state volunteering to undertake land acquisition on behalf of the private sector promoters of various projects.
Addressing mediapersons after a Cabinet meeting, Chief Minister Bhupinder Singh Hooda maintained the new policy, effective from January 1, would not just be limited to the manufacturing sector. The policy tries to addresses the state’s potential for attracting investment across sectors.
Highlighting the priorities, the chief minister said the policy would emphasise on reaching beyond the boundaries of industrial activities beyond selected areas and investment would be brought to the relatively backward areas of the state.
The chief minister emphasised, “Provision of quality infrastructure and good connectivity holds the key to development of new areas. To ensure spatial distribution of the benefits, the policy endeavours to encourage development of hinterland areas. Using a development block as a defining unit, the entire state has been divided into (A) industrially developed blocks, (B) areas with intermediate development and (C) industrially backward areas.”
The policy also focuses on development of industrial estates in backward areas, with involvement of the private sector under the PPP model. This measure is expected to open new areas to investment.
The policy proposes to enhance the competitiveness of enterprises in Haryana by providing quality infrastructure. Apart from state agencies like Haryana State Industrial & Infrastructure Development Corporation (HSIIDC), the state would also involve the private sector in development of industrial infrastructure in the backward areas under the PPP model. This would help in taking development/investment opportunities to new boundaries.
The agro and food processing sector has been accorded a special focus through a number of incentives — viz reduction in stamp duty and CLU charges for the units established in the backward areas, exemption of market fee on fruits and vegetables, among others. These measures are expected to lead to promotion of industry in this sector and help the farmers by way of increased demand and better price realisation for their produce and further catalyse localisation of the agricultural output and economic development activities in such areas.
The existing Land Acquisition Intervention Policy of May 2006 has been modified. Under the new norms, the state government would facilitate acquisition of land for the private developers mainly for the purposes of enabling contiguity of project areas.
The ceiling for allotment of industrial plots under the ‘prestigious category’ has been reduced from a uniform Rs 30 crore to Rs 20 crore for ‘B’ category areas and Rs 10 crore for the ‘C’ category areas. This measure is expected to accelerate the pace of investment in these areas.
Hooda maintained the state government was committed to improving the business climate, to streamline business entry and operation procedures through decentralised governance measures and efficient facilitation.
This is sought to be achieved under the policy through putting into place the entire gamut of business regulatory processes, and strengthening the supportive institutional framework in order to facilitate improvement of investment climate and business environment. There is a marked shift in favour of third party certifications and self-regulation.
The policy also focuses on development of Micro, Small and Medium Enterprises (MSMEs): and has proposed to set-up industrial cluster centres in partnership with industry. These cluster centres would address the common needs of MSMEs in the areas of research and development, provide technology up-gradation support, standardisation of products, quality testing and marking facilities, marketing initiatives with promotion of branding of products. . These cluster centres would largely be maintained and operated by the industry itself.
