Right time to take steps to attract firms looking at shifting mnfg base from China: FIEO

Seeking intervention of Prime Minister Narendra Modi, Federation of Indian Export Organisations on Sunday suggested various steps to the government to attract foreign firms that are looking at shifting manufacturing base from China after coronavirus outbreak.

The suggestions include fixing accountability on state and central government officers to perform in a time-bound manner; deemed approval for all licences and permits if not granted well in time; change in land acquisition law; power connection in one month and bank loan sanction within two months.

"All State Industrial Development Corporations must allot land to the applicant in one month positively if vacant land is available. At present, it takes about six months to get land allotted. Land use permission including non-agricultural use must be given in one month," FIEO President S Saraf said in a letter to the Prime Minister.

He also suggested that all forest land within 10 km from taluka capital should be available for industry with a condition that the promoter will plant a specified number of trees in another forest land and maintain the trees for three years as this will provide enormous employment opportunities in the rural area.

District collectors should be made responsible to increase investments in their districts, he said adding there are many such ground level issues that are making foreign investment in industry very difficult.

At present, only large companies are coming to India and if we address all ground level issues, India will be able to attract even medium and small industries, Saraf said.

"This is exactly what China has done where there is 'Ease of Doing Business' in true sense," he said.

He added that now there are concerted efforts by major world economies to shift base from China as Japan has announced a fund of USD 2 billion to support Japanese industries who would like to shift from China.

Industries from the US and Europe are also drawing up plans to move out of China.

"Sir, this is a great opportunity for us. If we do not put our house in order, we will lose the opportunity and these companies will shift to other Asian countries. As an immediate short-term action plan, we suggest to revamp our grass root field offices and laws," the letter said.