Gujarat unveils new Industrial Policy

With a view to becoming Asian leader in terms of industrial growth and attracting quality investments, Gujarat government today announced its new Industrial Policy 2009, which, among other things, lays emphasis on small and medium enterprises (SMEs), Special Investment Regions (SIRs), mega as well as innovative projects.

Apart from textiles, gems and jewellery, engineering, chemicals and petrochemicals, which are the sectors where the state has proved its strength, the new policy will focus on potential sectors such as agri business, fisheries and informal sector. Emerging sectors such as IT/ITes, nano technology, biotechnology, non-conventional energy resources have been given priority in the policy.

 

Terming SME sectors as the backbone of industries in Gujarat, the policy offers interest subsidy, venture capital assistance and quality certification to the sector to make it more competitive. As part of the policy, rehabilitation package will be announced, including revival or allowance of exit for sick units.The package will have options for the units, which include revival or allowance of exit to sick units. Support will also be given for market development including initiatives for creation of 'Made in Gujarat' brand by SMEs.

The new policy also provides for support to develop ancillary and auxiliary industries for value addition. "The state will continue to accord priority towards cluster development of SMEs in the entire state," said Saurabh Patel, minister of state for industries and energy and Gujarat government spokesperson, while announcing the new policy here in Ahmedabad.

The newly unveiled policy also seeks to encourage setting up of mega projects in the state. Projects having investment of more than Rs 1,000 crore and capacity to provide employment to 2,000 people will be treated as mega projects.

Merit-based assistance package will be given to such projects in identified sectors, which include auto components, semiconductor fabrication, nano technology, ship building and repairing, aircraft maintenance, repair and overhaul (MRO).

Special Investment Regions (SIRs) is also given a special focus under the new industrial policy. A 54,000 hectare SIR has already been planned in Dholera area in the state.

"Gujarat government is also considering formulation of Special Investment Region Act to facilitate growth of such regions in the state," said M Sahu vice-chairman and managing director, Gujarat Industrial Development Corporation (GIDC).