Uttarakhand appears headed for another push to the growth of SMEs in the state, through a new industrial policy.
After getting an extension in 2008, the state government's industrial policy came to an end on March 31 this year. The government this time seems to be in no mood to give it any further extension.
On the other hand, the government is contemplating a move to bring in a new policy for industrial growth. Uttarakhand is currently witnessing sluggishness in the industrial sector after the hill-based full excise exemption under the concessional industrial package (CIP) expired two months ago. The CIP was responsible for healthy growth of the SME sector during the past five years.
Since 2009, industries have not been showing any enthusiasm towards the hill state, with Chief Minister Ramesh Pokhriyal Nishank claiming that investment proposals worth Rs 32,630 crore and employment to 264,000 persons 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 CIP, the government is now trying to fashion a new industrial policy.
