STATE
POLICIES

MADHYA PRADESH

Industrial Policy and Action Plan, 1994

There is tremendous potential for taking Madhya Pradesh into the ranks of the industrially advanced States of the Country. The Industrial Policy and Action Plan, 1994 aims at accelerating & strengthening industrial development, attracting more capital investment, ensuring balanced regional development and providing additional employment opportunities to help improve the standard of livign of the people.

The Industrial Policy and Action Plan, 1994 takes into account the rapid economic changes taking place at the national and international levels. In the context of economic liberalisation, it is becoming increasingly necessary to reduce the regulatory role of administration. The facilitatory role of the administration will need to e strengthened. The document delineates, among others, measure to strengthen the physical and human infrastructure base, as well as, promotional measures, including facilities and concessions. It spells out the use of taxation as an instrument for increasing employment generation and developing synergistic linkages between different sectors.

It will be endeavour of the Government to increase budgetary allocation for industry, at present around four percent, to seven percent over the next two years, with a view to accelerating the pace of infrastructure development and intensifying promotion activities.

The Policy and Action Plan, 1994 lays special emphasis on responsive administration. It outlines measures to make administration a more result oriented responsive instrument for industrial development.

The principal objectives of the Industrial Policy and Action Plan 1994 are to :-

  1. Place Madhya Pradesh among the ranks of the industrially developed States.
  2. Ensure balanced regional development by giving additional facilities in "No Industry" Development Blocks.
  3. Accelerate the pace of industrial development in the State through greater utilisation of the State's human and natural resources.
  4. Create more direct and indirect employment opportunities.
  5. Encourage entrepreneurship among members of Scheduled Castes, Scheduled Tribes, Other Backward Classes and those below the poverty line.
  6. Encourage Women entrepreneurship.
  7. Create special opportunities for the accelerated development of rural industries.
  8. Create new opportunities for the development of the small scale sector.
  9. Create opportunities to attract new investments in the large and medium sector.
  10. Facilitate synergistic linkages between small scale units and large & medium enterprises.
  11. Encourage hi-technology based industries.
  12. Creation of special facilities, 100% Export Oriented Units.
  13. Encourage the establishment of industries in the "thrust sector", and formation of special schemes.
  14. Encourage private sector participation in infrastructure development.
  15. Encourage Cooperative sector for industrial development
  16. Facilitate commercial activity, so that commerce can become a vibrant factor in promoting industrial growth.
  17. Ensure simplification of administrative procedures with a view to transparency and speedy disposal.
  18. Create transparency in administrative procedures for continuing interaction with entrepreneurs.

Madhya Pradesh has tremendous potential for a faster pace of industrial growth given its rich natural resources, rapidly developing infrastructure and a sound human resource base. The dynamism of the State is indicated by the fact that it was the first State in the country to abolish octroi, the first to go into frontier technology like fibre optics and also the first to develop atoll road, opening up infrastructure development to the non-government sector. The Industrial Policy and Action Plan, 1994 aims at all-round development of the State's industrial potential.

1. EMPLOYMENT GENERATION

  1. Industrialisation is an important tool for generating direct and indirect employment.
  2. Along with giving priority to the development of high- technology industries, the document lays special emphasis on employment generation.
  3. Entrepreneurship development programmes, as well as training programmes in polytechnics and Industrial Training Institutes will be strengthened in order to further develop the human resource base.
  4. Special emphasis will be placed on development of entrepreneurship and employment opportunities for members of Scheduled Castes ad Tribes, Other Backward classes, those below the poverty line and Women.

2. INFRASTRUCTURE

  1. Growth Centres will continue to be the hubs of development. The facilities provided in them will be greatly strengthened. Infrastructure facilities like an Air Cargo Complex and Container Deports will be speedily developed. Private participation in developing infrastructure will be encouraged.
  2. State Government will allot land/sheds to entrepreneurs on 99 years lease on the condition that land use will remain for industrial purpose. During this period, the State Government will have the right to increase lease rent, as per rules. The entrepreneurs will not have the right to sell the land which has been leased to him. Change of land use will not be permitted without the permission of the State government. The lease is liable to be cancelled on violation of the conditions of the lease deed.
  3. Procedures relating to transfer of land and sheds, as well as provisions concerning changes in the constitution of industry will be simplified.
  4. The Commissioner of Industries will be empowered to grant exemptions to industrial units under the Urban Land Ceiling Act.
  5. Duality of administrative functioning in the Industrial Growth Centres will be removed.
  6. Services like fire brigade and police station will be available in every Growth Centre.
  7. Government will encourage the setting up of common effluent treatment plants.
  8. Industrial Associations will be encouraged to develop social and infrastructure facilities in Growth Centres. Land will be provided at concessional rates for construction of a school, medical centre and recreational facilities in every Growth Centre.
  9. 2.9 Entrepreneurs will be allotted land at concessional rate around Growth Centres for construction of airstrips. Private land acquired for the purpose will be made available at actual acquisition cost. The airstrip will be available for public use.
  10. The matter of having international airports at Bhopal, Indore and Raipur will be pursued with the Government of India. Efforts will also be made to put more industrial centres in State on the air map and increase the present frequency of air services. Private sector participation in construction of airports will be welcome. Efforts will be made to establish an inter-city rail service between Indore and Bhopal. This will be taken up with the Government of India.
  11. A Container Depot will soon become operational in Pithampur, Container Depots will also be established in other parts of the State.
  12. In order to ensure a convenient facility for the rapid transport of the State's industrial products, an Air Cargo Complex at Indore will be made operational shortly.
  13. A Trade Centre will be established at Bhopal. This will be followed by the setting up of Regional Trade Centres. Trade fairs will be organised on a regular basis. These facilities will help make commerce a more dynamic contributory factor in industrial development.
  14. State Government will encourage Tooling and Testing centres established by Industries Associations. Training facilities, with Government assistance, will also be made available in such Centres. The complex being developed by the Indo-German Tool Room at Indore will begin functioning within the next few months.
  15. While the A.K.V.Ns will continue to provide services in Growth Centres, private agencies will also be encouraged to operate such services on a commercial basis.
  16. Industrial Associations will be encouraged to provide day-to-day maintenance services in Industrial Areas and Estates on a cost sharing basis.
  17. The development of Industrial Model Township by the private sector will be welcome. The State Government will provide land by way of its equity participation. Not only will these Township provide for sheds and developed industrial plots, but also social infrastructure facilities like housing, schools, medical centres and recreational facilities.
  18. The private sector will be encouraged to set up Growth Centres for the Small Scale and the Tiny sectors. The State Government will provide land by way of its equity participation for such Centres. The cooperative sector will be given land at concessional rates for this purpose.
  19. Government of India have accorded approval for establishing a Mini-Growth Centre in the State. Efforts will be made to set up more such Mini Growth Centres in different areas of the State. These Mini-Growth Centres will be ear marked for the Tiny and Small Scale sector and will enjoy facilities and concessions at par with the larger Growth Centres.
  20. Specialised Industrial Complexes will be developed by the Directorate of Industries/A.K.V.Ns in consultation with Industrial Associations. The complexes will be product specific, covering products like electronics, garments, leather, food processing, etc. keeping in view locational advantages. Such specialised complexes will help in developing market linkages, and an easily accessible labour pool. They will also afford convenient access to raw materials and intermediate goods, permitting near-zero inventory levels. The private sector will be encouraged to set up such complexes and will be given land at concessional prices.
  21. The State Government will prepare a scheme for developing a complex for chemical based industries.
  22. A diamond park will be developed in the State for industries based on diamond cutting.
  23. Given the electronic sector's potential for development an electronic park will be established to provide special facilities to industries in this sector.
  24. An export park will be developed looking to the importance of expanding and developing export industries. Special facilities will be made available in this park to export oriented units. Efforts will also be made to make available through the private sector, inter-modal transport linking the export park directly to ports.
  25. A Technological park will be developed for industries based on genetic technology and bio-technology.
  26. Some shops, from among those developed by local bodies such as, municipalities, development authorities and panchayats will be reserved for entrepreneurs in the rural industries sector.
  27. District Collectors will be authorised to make available revenue land at concessional price for setting up khadi and village industries.