The new policy has come after a gap of 8 yrs succeeding the UP Industrial and Service Sector Investment Policy 2004, which lapsed in 2009
Industry in Uttar Pradesh has welcomed the state Cabinet approving the New Industrial & Infrastructure Policy 2012, saying it would usher in new dimensions of development.
The Confederation of Indian Industry (CII) said here that the industry had been ‘keenly awaiting’ the interventions by the new Samajwadi Party government in the industrial sector.
The Akhilesh Yadav-led government has come out with the new industrial policy to address regional imbalances and attract fresh investment in different sectors. It is aimed at ameliorating the ills of traditional industries and energising the large micro, small and medium enterprises (MSME) base in UP estimated at over 3 million.
The new policy has come after a gap of 8 years succeeding the UP Industrial and Service Sector Investment Policy 2004, which lapsed in 2009.
“CII is delighted that the government is aiming for a growth rate 11.2 per cent in the industrial sector. The announced policy has unveiled a roadmap and graphed a trajectory for bolstering the industrial climate of the state and removes roadblocks, which hampered the industrial expansion,” said Alok Saxena, chairman, state council, CII UP.
He underlined that investment incentives and assurance of effective facilitation mechanisms would complement UP’s core advantages of 57 per cent share of dedicated freight corridor (DFC) and 7 per cent of the Delhi Mumbai Industrial Corridor (DMIC) region covering 12 districts.
UP contributes 20.2 per cent in the national food grain production and ranks second in vegetable production.
The new policy gives impetus to food processing industry, which has been a long pending demand of industries. However, the new policy framework would require active involvement of industrial and business bodies to leverage the opportunity at hand.
One of the key CII recommendations was removal of entry tax on material/capital goods. The new policy exempts entry tax on iron and steel.
Meanwhile, CII has suggested that UP should develop basic infrastructure and provide for rehabilitation and resettlement of displaced persons.
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