Industrial policy delay bothers MP industrialists

On one hand babus in Madhya Pradesh are busy luring industries from abroad by organising expensive events, on the other industries at home are suffering for the last nine months in absence of an effective industry policy. The Industrial Promotion Policy 2004 has expired and ‘verbally’ effective. As a new policy is yet to be launched, procedural delays in various departments have stalled almost all new investments, various industrial associations have told BS. The state government has apparently skipped the launch of new policy due to elections at regular intervals but the inside story is different.

Members of the Confederation of Indian Industry (MP Chapter), MP Association of Cotton Processor and Traders and MP Laghu Udyog Sangh have said the government had verbally assured the industry that the 2004 policy had been extended till March 31, but in reality no order or notification had been issued in this regard and procedural delays had started showing their effects.

“How come the government is inviting investors without any policy in hand? The government has no clear agenda on the policy issue” said an entrepreneur in Ujjain Anand Bangur.

Similarly cotton growers were promised slash in mandi tax and entry tax, but after November last year the facility was withdrawn. “How can we survive when states like Maharashtra pose intense competition? Only 15 out of 100 units are now surviving and face harassment,” said secretary MP Association of Cotton Processors.Gopal Tayal.

“Industries have pending demands but during the last four years. The existing policy failed to address them as it has lost its appeal,” said a CII member.