New industrial policy may suggest stronger local bodies

The proposed new industrial policy is likely to suggest strengthening municipal bodies and setting up of commercially viable units to recycle waste to produce energy.

The municipal bodies need to be encouraged to raise funds at competitive rates and also impose user charges for the services, official sources said.

The policy is also expected to emphasise on the need to promote research and development (R&D) activities and set up an institutional mechanism for encouraging commercial utilisation of research done using government funds.

The research activities would focus on futuristic technologies and innovations which could be used by small and medium enterprises.

For this, the policy may also recommend development of a national R&D vision and a network of research institutes dedicated to the frontier technologies and linking that with industry.

The new policy will replace the industrial policy of 1991 which was prepared in the backdrop of balance of payment crisis.

Commerce and Industry Minister Suresh Prabhu had earlier said the proposed policy aims to promote emerging sectors, modernise existing industries, reduce regulatory hurdles and encourage adoption of frontier technologies such as robotics and artificial intelligence.

The ministry in August last year floated a draft industrial policy with the aim to create jobs for the next two decades, promote foreign technology transfer and attract USD 100 billion FDI annually.