Home Economy MP Govt. amends Industrial Promotion Policy on eve of Global Investors’ Summit

MP Govt. amends Industrial Promotion Policy on eve of Global Investors’ Summit

By Pervez Bari, TwoCircles.net

Bhopal: In a significant initiative on the eve of the Global Investors’ Summit at Indore the Madhya Pradesh Government has amended the Industrial Promotion Policy-2004 to make it more industry friendly. The suggestions from industry and trade sector have been accommodated in these amendments.

The amended policy offers a special package for biotechnology industry. Now district level empowered committees would be authorized to give clearance to the projects involving investment of upto Rs. 10 crore. Biotechnology industries with a capital investment of more than Rs. 10 crore have been given the status of mega project. They would now be entitled for capital grant and interest subsidy, according to an official Press release.

Some more important decisions have been taken. As per the amended policy, special facilities would be given to biotechnology industries in addition to the facilities available to general industries.

Double permissible floor space index would be available to these industries in the biotechnology park and 40 per cent of the area allotted to a unit can be used for supplementary purposes and support services. A unit providing employment to more than 500 people would get 50 per cent exemption in premium of land. The units to be set up in the biotechnology park would be given cost capital grant of upto Rs. 20 lakh at the rate of 20 per cent and the industries with capital investment of over Rs. five crore would be given this grant upto Rs. 150 at the rate of 15 per cent. In case a unit obtains loan from a bank or financial institution it would be given interest subsidy at the rate of 5 per cent per annum for a period of three years subject to maximum Rs. 20 lakh. Setting up of venture capital fund would be encouraged for biotechnology units. Subsidy up to Rs. one lakh at the rate of 30 per cent would be provided on drug control audit and certification by the W.H.O. or different countries.

As per the amendment in the mega project policy, now biotechnology industries with capital investment of over Rs. 10 crore have been given the status of mega project. Amending the definition of a mega project to make it employment oriented, now mega project status would be given to the industries which provide over 1000 regular employments and these have been exempt from the condition of minimum capital investment.

As per the amendment, the district level empowered committee headed by the collector has been authorized to issue clearance to projects involving capital investment of upto Rs. 10 crore.

In order to ensure revival of sick industries, now exemption from transfer fee would be available in the Industrial Estates and AKVN Growth Centres. The empowered committee constituted for revival of small scale sick units has been decentralized to district level. It would be headed by district collector and General Manager, District Commerce and Industries Centre would be its member secretary.

Provisions have been made for basic facilities like labour welfare centres and night rest houses for workers at industrial development centres. Now areas would be earmarked and provided for warehousing in the large industrial areas spread over more than five hundred acre.

Liberal provisions have been made for providing facilities to the industries. Now eligible industries would be eligible to get cost capital subsidy and interest subsidy along with industrial investment promotion assistance.

Besides, the major and medium industries going for expansion spending 30 per cent of the principal capital investment or minimum Rs. 50 crore permanent capital investment and small scale industries doing so by spending 50 per cent of the principal permanent equal to the minimum capital investment or Rs. 25 lakh would get the grant facilities at par with new industries. The pharmaceuticals industries would get the exemption on investment lower than this. Provisions have been made for revision of the list of ineligible industries and to delete many of them.

With a view to promoting herbal industries, ten types of industries based on minor forest produce have been included in thrust sector.

The package for revival of sick industries after taking over has been made more practical. Now project appraisal may be done by M.P. Entrepreneurship Development Centre as consultant. ([email protected])