Amendments on anvil

Succumbing to pressure from corporate houses, the Madhya Pradesh government is changing its Industry Policy 2010 mid-way its implementation. A closed-door meeting it convened with industry advisory council earlier this week saw the participation by rather low-rank executives, even as the administration is learnt to have decided to amend the existing policy in parts.

A well-placed government insider who participated in the meet convened by chief minister Shivraj Singh Chouhan said the government had mooted raising the floor area ration in industrial areas from the existing 1:3 so that industries culd sub-lease floors. “Further, we would design a package for auto, textile and pharma industry. It will include further tax related concessions and land allocation at ease,” he told Business Standard.

Also, micro, small scale and medium industries will get facilities on par with those available on making an investment in backward or ‘C’ category districts. This facility will be extended to all the MSMEs that will make investment of Rs 5 crore.

The government has also assured industry to abolish export tax levied by local civic bodies at 2 per cent in industrial towns like Mandideep, Pithampur, Malanpur and other areas. The amendments to the policy will be completed by this June. “The policy is also likely to have special provisions to motivate women entrepreneurs,” the insider added.

Another source said the CM called on the meeting to regain faith of the industrialists who are now turning away from making investment in the state due to otherwise paralysed bureaucratic system. “The prime agenda was to cajole them to make forthcoming Global Investors meet 2012 to be organized in Indore,” he said.

Chouhan agreed upon certain demands but turned down wage revisions related demands. Almost all industrialists cried for setting up infrastructure for skill development schools and polytechnic colleges. “We are working on setting up industrial training institutes on public private partnership mode so that industries can get properly trained labours and workers,” Chouhan told Business Standard.