Up Officials Divided Over Capital Subsidy To Ssis

The Uttar Pradesh government is reworking its industrial policy, following a dismal industry performance in the Eighth Plan. The industry registered a growth rate of 3.5 per cent against the Seventh plan figure of 11.5 per cent.

The industry department has conducted a study on how other states are faring and has found the states in the frontline of industrial development, like Maharashtra, Gujarat and Andhra, are offering capital investment subsidy to the small-scale industry sector. The capital investment subsidy offered by these states is about 20 per cent. Industrialists in the state are, however, divided on reintroducing the subsidy as a means of promoting industrialisation in the state. A majority of state officials feel this kind of support tends to weaken industries, making it difficult for them to survive once subsidies are withdrawn. This argument has held sway for now, though not dropped, and the issue of providing such incentives has been put on the backburner. The state has decided to encourage private sector participation in infrastructure development. The Rs 340 crore Noida bridge project will see an investment of only Rs 10 crore. by the state.

 

In the power sector, captive power plant generation is proposed to be encouraged and surplus electricity is to be bought by the state electricity board.

The government feels bureaucracy needs to be trained to become more industry friendly and is planning special courses for the purpose.

The state was also planning to revamp its industrial estates, but has found no takers in absence of adequate infrastructure facilities.

The small scale industries sector, which is the backbone of industrialisation in the state, is in serious trouble. Out of 2.64 lakh units, nearly 36 per cent are sick. The government is conducting a survey to identify the sick units and the reasons for sickness.

As part of its effort to revive the small scale sector, the state is providing escort services to entrepreneurs in the sector. Officials have been appointed to keep a watch on SSIs, help them establish and ensuring they do not fall sick.

Sectoral schemes, that were introduced earlier, but failed to take off are to be revived. These include: Talanagri in Aligarh, for locks; Peetalnagri, for brass in Mordabad, and Plastic complex in Basti. The scheme was launched to help the small scale sector in the state.