Chavan bats for Integrated Industrial Areas

Addressing a press conference to give details of the new Industrial policy which was approved by the cabinet yesterday, Chavan said social infrastructure should not be undermined.

According to him, minimum 60 per cent of the total area notified as IIAs shall be used for industrial development and the remaining 40 per cent for development of support activities including residential and commercial activities.

"We intend to lead the country in terms of IIAs. Out of the total area earmarked for support activities, 10 per cent will be for commercial and 30 per cent for residential, educational, health, recreational infrastructure," he said.

Chavan rejected criticism that the new industrial policy, applicable till 2018, was meant to promote housing sector and said that reports in a section of the media were "motivated".

Industries Minister Narayan Rane said the news reports were due to lack of knowledge about the industrial policy, which drew sharp reaction from journalists at the conference.

Chief Minister said upon de-notification of SEZs, land owners can avail the facilities of the IIAs. Under the SEZs, 50 per cent of the total area was meant for industrial development and rest for allied activities.

"In IIAs, we have reduced the cap for allied activities from 50 to 40 per cent. Permit will be given for commercial, residential and non-residential activities only after development of infrastructure facilities on the area earmarked for industrial development," he said.

Rane said with this decision the government has held back the land of 15,000 hectare for industrial development which was free after the SEZs were denotified. "If farmers want the land back, they should repay the compensation amount to the developer. Government has nothing to do with it," he said.

Both Rane and Chavan however did not comment on questions whether the housing in the IIAs would be meant only for employees in the industrial projects or would be sold in open market.

Chavan said the 2007 Industrial policy focussed on mega projects but the new one will have a thrust on development of small and medium enterprises since the employment potential is vast.

Under the last policy, 354 mega projects was set up with an investment of rs 2.80 lakh crore and employment to 3.22 lakh people.

"Our focus is now to continue the success story of mega projects, promote a new concept of ultra mega projects and give momentum to the manufacturing sector," he added.

Manufacturing projects with fixed capital investment of Rs 1500 crore and employing more than 3000 persons will be classified as ultra mega projects.