MP unclear about stand on industrial policy

A year after the amendment of the Industrial Promotion Policy 2004, the Madhya Pradesh government has still not made it clear whether it wants to launch a new version.

Recently, Chief Minister Shivraj Singh Chauhan had told Business Standard the policy would be changed in a phased manner. He had clarified that amendments would be made in the policy when required, indicating that he has dropped the idea of introducing an overhauled version of the existing policy.

However, a source in the department of industry said, "The amended policy draft is ready and a Cabinet nod is awaited. It can be placed before the Cabinet during any of its meetings coming up." The chief minister is skipping the policy issue since it involves some tough decisions.

Industry has been waiting for three years for policy-related notifications. "As many as 13 notifications are yet to be issued. Industry cannot wait so long," said an office-bearer of an industry association.

State units of various industry chambers had already submitted their suggestions to the government for the policy's amendment. A mega convention was also organised in Indore last year on May 5.

The major amendment industry wants is on land allotment related issues. With prices of land for industrial purposes soaring, fresh investment is in the state is difficult.

The new policy draft (which was seen by Business Standard) promises to rationalise the taxation system and power tariff, provide more teeth to the Madhya Pradesh Trade and Facilitation Corporation (TRIFAC), create a growth task force for speedy disposal of industrial issues, include a new self-employment scheme, setting up regional offices of TRIFAC, an annual block grant to TRIFAC and an increase in the annual (revolving) fund for the Industrial Infrastructure Development Fund to Rs 20 crore from Rs 10 crore.

The draft also mentions demarcation of industrial areas, creation of a model cluster for small-scale industries and an improvised version of the Deendayal Yojna scheme for self-employment, and new land and shed allotment rules, flexible labour laws for apparel parks and export-oriented units, promotion to information technology training institute in private sector and land on lease for 99 years for medical colleges and nursing colleges.

But experts doubt if the overhauled version will attract any investor. The slow pace of decision-making has jeopardised matters for investors since only one-and-a-half year is left for the Bharatiya Janata Party to complete its tenure.

The recent shifting of the principal secretary department of industry, OP Rawat, to another department for unknown reasons has also raised doubts among investors about whether the government will amend the policy.