Defying the directions of the ministry of home affairs (MHA), the draft of new industrial policy prepared by the Chandigarh administration is silent over the implementation of the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006.
The implementation of the Act has been a bone of contention between industrialists and the local administration since it was enacted by the central government.
In November last year, MHA had pulled up the administration for not having an industrial policy and had asked it to formulate one in line with the MSMED Act, which the Centre had formulated for the overall growth of enterprises.
The administration was asked to formulate a new industrial policy commiserative to the MSMED Act, 2006 on the lines of Government of National Capital Territory of Delhi (GNCTD).
In the MSMED Act, the word ‘industry’ has expressly been replaced by ‘enterprises’, in which services along with manufacturing are allowed, while GNCTD has defined ‘industry’ and ‘enterprise’ as one entity. The directions were issued after a delegation of joint forum of Industries Association Chandigarh (IAC) and Chamber of Chandigarh Industries (CCI) took up the issue with the ministry.
Despite repeated attempts, UT secretary-cum-secretary industries Anil Kumar was not available for comment. Director industries Mahavir Kaushik said they had sought suggestions from other departments of the administration and would take the decision thereafter. He also added that they would invite objections from the industry before notifying the policy.
Coming down heavily on the administration, IAC president Arun Mahajan said the new policy was just eyewash and it had nothing much for the industry.
“The administration did not even bother to mention the Act in the draft despite MHA clearly asking to formulate a policy along the lines of Delhi for implementation of the Act. It shows the highhandedness of the local administration,” Mahajan said.
Key focus area
As per the draft of the industrial policy, the administration is looking to promote clean, energy-efficient, hi-tech, low-volume and high value-added industries, which are not labour intensive. The draft policy aims to create a pollution-free industry based on promotional avenues for micro small and medium enterprises.
The list of activities to be promoted, includes electronic items, information technology (software development and hardware manufacturing without including knowledge process outsourcing business), light engineering goods, knowledge based industries, automotive components (tractor parts), handloom and handicrafts, furniture items, paper and paper products, sanitary fittings, pharmaceuticals, industrial fasteners and allied industries and assembly of battery operated vehicles.
In the industrial policy 2009, the administration emphasised on the expansion of micro, small and medium-scale enterprises in the city along with thrust on development of the information technology sector.