Changes on the cards
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Changes on the cards

THE STATE Government is changing its industrial policy to make it more investment and employment-oriented and the Industrial Promotion Policy (IPP)-2004 is being re-christened ?Investment Promotion & Employment Policy?.

india Updated: May 31, 2006 15:25 IST

THE STATE Government is changing its industrial policy to make it more investment and employment-oriented and the Industrial Promotion Policy (IPP)-2004 is being re-christened ‘Investment Promotion & Employment Policy’.

“The Chief Minister wants that the industrial policy should not be confined to industrial investment alone. Instead, it should incorporate all types of investments with emphasis on employment generation,” Industry Principal Secretary OP Rawat told Hindustan Times.

The broad contours of proposed changes in the existing industrial policy were deliberated upon in the recent Government-Industry meet at Indore. A section of the participating industry representatives questioned the rationale of re-christening the policy.

The Government reasoned that the Chief Minister was keen on amending the policy to make it more ‘appropriate with the changing industrial scenario’ in the country. With this idea in mind, the Industry department constituted six groups during the Indore meet, each headed by an industry representative with three Government officials.

The six groups – energy, concessions and facilities, sick industries, labour, implementation issues and miscellaneous are headed by Rajesh Agarwal, Gautam Kothari, Naresh Randhar, Mahendra Tyagi, Jagdish Verma and Rajendra Kothari respectively.
The groups have already submitted their recommendations to the State Government for study by a Cabinet sub-committee. The final draft for the revised policy will be chalked out within a fortnight.

Groups have also apprised the Chief Minister of recommendations and by mid-June the Cabinet committee will announce the final blueprint, added Rawat.

Justifying changes in the IPP-2004, Mahendra Tyagi of Nahar Spinning Mills told Hindustan Times that the industrial scenario at present was in a flux due to several factors like abolition of quota system in textiles and introduction of VAT. “So, we can’t have a static policy and to make it dynamic, a re-look into the existing one is imperative,” he remarked.

On re-branding the policy, group heads opined that by proposing a change in name, the Government wants to hard sell its investment idea with renewed vigour.

In the Indore meet, the Chief Minister also announced that henceforth, single window concept would be replaced by ‘single table’. He contended that the single window system makes an entrepreneur to do rounds of several windows, which ultimately leaves him confused and unattained.

However, industrialists are a bit skeptic about the idea of transition from single window to single table. “The Industry department has failed to issue all notifications against IPP-2004 even after two years and a large number of entrepreneurs are still grappling with problems.

Single Table concept and renaming of the policy could be effective only if all these complaints get redressed within a stipulated time-frame,” said Pitampur Audhogik Sangathan’s Gautam Kothari.

“After all, implementation of policy remains with the bureaucracy, and here it’s the same as the previous one, irrespective of change in government or policy,” remarked an economist and industry watcher.

If, the new policy with desired changes is implemented properly, the Chief Minister’s intention would bring fruits, as he’s sincere about bringing about industrial growth in MP,” said Naresh Randhar , nominated leader of the Labour group.

1 The contours of proposed changes discussed at Government-Industry meet in Indore.

2 Industry Dept constitutes six groups.

3 The groups submit recommendations to the Government.

4 Revised policy final draft in a fortnight.

First Published: May 31, 2006 15:25 IST