A week after chief minister Prithviraj Chavan said that the state’s gross domestic production (GSDP) could grow at the rate of 10.5% in the next five years, the state Cabinet has decided to focus on giving financial, infrastructural and planning impetus to micro, small and medium (MSME) projects.

The state’s new industry policy — Magnetic Maharashtra, Brand Maharashtra — which got the Cabinet’s approval on Wednesday, has been designed to ensure that the MSMEs add to the state’s growth rate in terms of revenue and jobs.

The new policy envisages an investment of Rs5 lakh crore and creation of 20 lakh direct or indirect jobs over the next five years. It also plans to increase the industry’s contribution to the GSDP from the existing 21.4% to 28%.

The policy does not have much for mega projects because the policy makers feel that they haven’t contributed much to jobs and taxes. The policy will encourage ultra-mega projects that require a minimum investment of Rs1,500 crore and will create 3,000 jobs

Chavan and industries minister Narayan Rane expect the new policy to turn the tables on other states that are equally aggressive on the investment front. Though the policy was ready in March 2012, it got delayed owing to the concerns over SEZs.

The areas governed by the Maharashtra Industrial Development Corporation (MIDC) will also get an additional floor space index of 0.5.