After the expiry of the state industrial policy last year, the Uttarakhand government appeared to be not in a hurry to fashion a new one.
The hill state had come out with its industrial policy in 2003 when the industrial package comprising tax exemptions were announced by the Centre. The cent per cent excise exemption, which was the main component of the package however expired last year. Since then, the government has not made any substantial work to prepare a new industrial policy in the changed scenario as the central excise exemption had spurred the industrial growth during the past five to seven years in the state.
Several industrial associations as well as Governor Margaret Alva have advised the government to come out with fresh plan for industrialisation in the changed scenario. “The government must come out with an action plan for sustaining the momentum of industrial growth seen during past few years,” said Pankaj Gupta, president of Industries Association of Uttarakhand (IAU).
In the meantime, the industrial process developed sluggishness in the hill state even as the government tried hard to attract industries in the hills for which it had announced a series of sops in 2008. Most of the top-notch companies did not show any interest in the hilly region with the experts suggesting a thorough review of the 2008 hill development policy.
Even in the key industrial estates like Pantnagar, the government found the process of industrialisation in the remaining vacant land very tedious. “We still have vacant industrial plots at our industrial estates but there are no takers,” said an official of the State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (Sidcul).
Since 2009, industries have not been showing any enthusiasm towards the hill state, with Chief Minister Ramesh Pokhriyal Nishank claiming that investment proposals worth over Rs 56,000 crore had been affected, mainly due to the expiry of excise exemption. During the past one year, the government has maintained a wait-and-watch policy. But after getting no positive response from the Centre on the extension of the tax incentives, the government is now trying to fashion a new industrial policy.
When contacted, state industries minister Bansidhar Bhagat told Business Standard that the government would look into the matter of the new industrial policy. “Let us see how it will be done,” said Bhagat.
