Industry demands labour reforms, cheap power from Yogi government

Suggest ways to improve 'ease of doing business' index

As Uttar Pradesh gears up for foundation laying of projects worth almost Rs 600 billion at the hands of Prime Minister Narendra Modi on July 29, the Confederation of Indian Industry (CII) on Friday urged the Yogi Adityanath government for labour reforms and reducing industrial power tariffs to further boost its 'ease of doing business' index.

"There have been positive developments in UP under the present dispensation, including improvement in law and order, power situation and infrastructure development. However, we feel the state also should liberalise labour laws to make it easier to do business here," CII Northern Region chairman Sachit Jain told Business Standard.

For example, he claimed, the labour laws restricted workers to work overtime even if they were willing to work extra time to earn extra money, as is allowed in the developed and industrialised economies.

"Besides, there is also the need to reduce industrial power tariffs for cost competitiveness and ensuring 24x7 power supply to industries," he added.

However, he maintained the Adityanath government had incrementally been undertaking far reaching reforms, which would start showing results in near future.

"There has been a perceptible improvement in the law and order situation in the state. The power situation has also improved considerably although there is room for further improvement. The state government is also working for improving road connectivity," Jain added.

The CII is sanguine on the over dozen new policies announced by the government, which would firmly put on the track of socioeconomic and industrial development going forward.

Meanwhile, CII has suggested the Adityanath government to focus on agriculture and ways to boost farm income by combining farming with allied activities, such as food processing, diversifying into other vocations using agricultural land.

“There is a vast potential in the state farm sector beyond conventional agriculture, such as land leasing and setting up of solar power farm,” he added.

The CII delegation also called upon UP Governor Ram Naik and it is slated to meet the CM in the evening.

Jain said industry was bullish on the proposed Bundelkhand Defence Corridor in UP and the promise it holds for the industrial firmament of the state.

“We have a dedicated team for the proposed UP defence corridor, which coordinates with the state government and other agencies on its progress,” he said. The industry body has already formed a Society of Indian Defence Manufacturers (SIDM) to boost the sector in the backdrop of the Modi government aiming to cut defence import bill and promote domestic industries. The other defence corridor is proposed in Tamil Nadu.

CII is creating awareness among its members regarding rooftop solar power to economise on energy consumption and promote green power. It encourages members to install mini solar power plants on their industrial premises to cut costs.