UP Cabinet okays new industrial policy

The Uttar Pradesh Cabinet, in its pursuit to iron out regional industrial imbalance and attract fresh investment, on Tuesday gave its nod and cleared the New Industrial & Infrastructure Investment Policy 2012.

The policy is aimed at ameliorating the ills of traditional industries scattered across the state and energising the micro, small and medium enterprises (MSME) base estimated at over 3 million units.

It comes after a gap of eight years succeeding the UP Industrial and Service Sector Investment Policy 2004, which lapsed in 2009.

According to analysts, it is probably for the first time the government would try to match the sops provided by the neighbouring states for new units coming in the adjoining UP districts.

“The government has decided to consider big investment proposals of over Rs 500 crore on case-to-case basis and as such, the new policy would not impede exclusive considerations in such matters,” said Anil Kumar Gupta, UP infrastructure and industrial development commissioner (IIDC) while speaking to mediapersons in Lucknow.

Under this policy, the government would strengthen the single-window and ‘escort officer’ (facilitation personnel of industry department) systems to simplify and speed up processing of investment proposals. To reach out to investors, the government would hold road-shows in big cities, including Mumbai and Delhi.

“We may even hold similar events in the US and Europe to market our new policy,” he added.

The government had studied the main features of industrial policies of neighbouring states like Uttarakhand, Haryana, Rajasthan, Madhya Pradesh, Bihar and some industrially progressive states like Maharashtra, Gujarat, Karnataka among others to prepare its own policy.

“The government wants that industrial and infrastructure development in Noida, Greater Noida and Western UP percolates to other regions as well, including Poorvanchal (eastern UP), Bundelkhand and Madhyachal (central UP),” Gupta added.

The state has announced a 100 per cent stamp duty exemption to industrial units in these three industrially backward regions.

Although, the government has not set any target for investment, UP is targetting a 11.2 per cent industrial growth during the current 12th Plan (2012-17).

Besides, industrial estates being developed by private sector will be reimbursed 25 per cent stamp duty.

Gupta further added that the issue of land acquisition was being reviewed comprehensively by a state group of minister (GoM) committee.

The new policy would serve as broad roadmap for about 26 different departments associated with industrial and infrastructure development, including labour, IT, food processing, tourism, transport, taxation etc.

Now, the individual departments would issue government orders (GO) under this new policy framework.

UP is targetting industrial and services growth rate of 11.2 per cent and 11.9 per cent respectively during 2012-17, agricultural growth rate of 5 per cent and employment to 10 million people. During the 11th Plan, the average growth rate of UP was 7 per cent.