Maha yet to issue notification on 'game changer' ind policy

Was cleared on Jan 2 to take on Gujarat, other competing states

Despite one-and-a-half month since its release, the Maharashtra government has yet to find a time to issue notification on the New Industrial Policy (NIP).  Congress led government in Maharashtra had termed it as a "game changer" in a bid to take on competition especially from neghbouring Gujarat and couple of other states.

However, slow pace of inter departmental movement of the necessary file has delayed the issuance of notification. NIP was announced after one year delay following the lapse of NIP 2006 in 2011.

Even though the new policy will come into effect from April 1, the government was failed to put the issuance of notification on a fast track. Chief Minister Prithviraj Chavan has confirmed the non issuance of notification as on date.

However, officials of the industry department held by the Congress party has passed the buck on the finance ministry held by NCP. “The delay has been due to certain objections raised by the finance department with regard to slew of incentives offered in the NIP.

These objections could have been raised when the cabinet gave its nod on January 2 and the announcement of which was formally made on January 3 by the chief minister Prithviraj Chavan and industries minister Narayan Rane,” the official told Business Standard.

But the finance department clarified that there was no delay. “The file came to the department on February 1 from the industries department and sent back after scrutiny on February 12,” the official informed.

NIP, which aims to attract investment of Rs 5 lakh crore and job creation for 2 million people during next five years, has proposed exemption in the value added tax (VAT), stamp and registration duty, electricity duty and reduction in power tariff in a serious bid to shift investments in under developed and naxalite and tribal infested districts due to the saturation in the Golden Triangle comprising Mumbai, Thane and Pune.  NIP focuses on promotion of micro, small and medium scale enterprises (MSMEs).

NIP has proposed rebate in electricity tariff charged to MSMEs by the Maharashtra State Electricity Distribution Company (MahaVitaran). Further, NIP envisages conversion of special economic zones into integrated industrial areas where it is mandatory for the developer to use 60% of the land for industrial use and thereafter they will be allowed to use 30% for residential and 10% for commercial purpose.

CS Deshpande, director (research), World Trade Centre said the state government has hurriedly produced policy document, which merely takes forward some micro-aspects of previous policies, without paying the required holistic attention to the crucial problems pertaining to infrastructure, ease of doing business for SMEs, labour reforms and easing land acquisition for industry.