The modifications will pertain to expediting work on the Chennai-Bangalore-Mumbai industrial corridor, creating sector-specific zones, moving industries out of Bangalore to places near the river basins, skills upgrade in manufacturing sectors and addressing the problem of availability of land for special economic zones.

"We will consult all stakeholders and study the industrial models in Gujarat, Maharashtra and Tamil Nadu before modifying the policy," Industries Minister Murugesh Rudrappa Nirani told reporters in his maiden press conference here.

The policy review comes in the backdrop of a fall in investment and manufacturing in the state. A pointer to this is the number of projects approved by the state-level single window clearance committee (SLSWCC). While 881 projects worth Rs 11,954 crore were cleared in 2006-07, the number fell to 728 projects worth Rs 10,309 crore in 2007-08. However, investment in mega projects increased last year.

"But we want industries to move out to other places instead of jostling for space in Bangalore," Nirani said. To facilitate this, the government would give thrust to early rolling out of the Chennai-Bangalore-Mumbai industrial corridor, which would be laid out alongside National Highway-4 and pass 20 towns. "We will acquire 100-150 acres flanking the corridor. The land will be used for industrial development," Nirani said.

This apart, the government had resolved to clear 120 pending investment proposals worth Rs 20,000 crore in the coming days, he said. While three pertain to the iron and steel sector, a majority of them relate to the IT/ITeS sector. The government said it would continue to promote SEZs. So far, 45 SEZ projects involving a total investment of Rs 25,000 crore have received formal approvals while another eight have got sector-wise approvals in principle.