STATE
POLICIES

MADHYA PRADESH

9. DEVELOPMENT OF COMMERCE

    9.1 Expansion of commercial activity is an important factor in accelerating and strengthening industrial development.

    9.2 Government will take measures to provide facilities for the development of commerce. The tax structure will be simplified and the administration of tax laws will be streamlined and made more transparent.

    9.3 If necessary, the existing procedures of inspection and licensing will be reviewed and modified.

    9.4 Trade fairs will be a regular feature. A Trade Centre will be set up in Bhopal. This will be followed by setting up Regional Trade Centres.

    9.5 The matter of establishing international airports at Bhopal, Indore and Raipur will be pursued with the Government of India. Efforts will be made to provide air links for other urban centres in the State.

    9.6 Container Depots and an Air Cargo Complex will be established to strengthen infrastructure support for international trade.

10. RESPONSIVE ADMINISTRATION

    10.1 The effectiveness and dispatch with which a policy is implemented depends to a very large extent, upon administrative structure and procedures. The State Government will make administration more responsive to the needs of industrialsation.

    10.2 Structural changes are being carried out in the administrative apparatus to reorient it from a regulatory to a facilitatory one.

    10.3 Far reaching improvements have been made in the system of Commercial Tax (Sales Tax) with a view to encourage and provide relief to industries. Earlier, new industrial units were required to give cash security for obtaining registration. The need for providing this security has been dispensed with. Sales tax check posts on the boundaries of the State have been abolished from 1st April, 1994. This has facilitated the inflow and outflow of goods across the borders and industrial units are now free from the need of having to present declaration forms at check posts. Similarly, flying squads in the Sales Tax department have been disbanded from 1st April, 1994. The powers of Sales Tax inspectors and other Sales Tax officers to inspect industrial and commercial establishments have been withdrawn. No such inspections can now be carried out without the permission of the State Government. Madhya Pradesh is the first State where "Inspector Raj" has been brought to an end in this important sector. Producers (industrial units) with an annual income upto Rs.ten lakhs, have been allowed the facility of self assessment. The level of minimum sales proceeds which is taxable has been raised for industrial units from Rs.20,000 to Rs. 50,000 a year.

    10.4

    1. Industrial peace is necessary for industrial development. This is possible only if cordial relations exist between management and labour. Efforts will be made to find acceptable solutions to prevent industrial disputes assuming ugly forms. Where necessary, the industrial relations machinery will be further geared up.
    2. Determined efforts will be made to put a stop to tendencies like pressurisation, unrest and violence in the industrial sector. While efforts will be made to protect the recognised rights of labour unnecessary and illegal strikes will be discouraged and if necessary firmly prevented.
    3. Management will be expected and encouraged to accept the legitimate demands of workers, so that, situations like strikes and agitations do not arise.
    4. Powers of renewing factory licenses under the Factories Act will be decentralised.
    5. Efforts will be made to ensure adequate arrangements in industrial areas for the health and safety of workers.

    10.5 The Single Window System in the District Industries Centres will be strengthened and geared for speedy disposal. Applications presented by entrepreneurs will be examined at the time of receipt itself, and in the event of their being incomplete, assistance will be provided to complete the applications.

    10.6 The information cell of the District Industries Centres will be strengthened and made more effective. Towards this end it will be provided with a computer and efforts will be made to link it with the National Informatics Centres.

    10.7 Managers of the District Industries Centres will be designated as nodal officers for small scale units. These nodal officers will functions as "Udyog Mitras" (friends of industry). Every "Udyog Mitra" will maintain a unitwise activity chart. The "Udyog Mitra" will be responsible for ensuring that government facilities and concession become available to small scale units and that their problems are solved in time bound manner.

    10.8 Managing Directors of the Audyogik Kendra Vikas Nigams will be the nodal officers for medium large scale units being set up in Growth Centres. Zonal Industries Officers will be the nodal officers for such units outside the Growth Centres. The nodal officers will inform entrepreneurs of the formalities to be completed and make available to them the forms which they require to fill up. They will forward these forms to the concerned departments and also follow up with them in a timely manner. Nodal officers will follow up cases not only at the local level but also at the level of the State Government. In case, the State Government's intervention is necessary, the nodal officer will present the case in the Inter-Departmental Assistance Group chaired by the Secretary, Commerce & Industry. If the matter is not resolved in this Committee, it will be immediately placed in the Committee chaired by the Chief Secretary. The entire process will be a time bound one.

    10.9 The procedures relating to environmental clearances will be made simpler, quicker and more transparent. Applications will be decided within a time limit. If necessary, applications presented to different agencies will be examined jointly with a view to speedier disposal.

    10.10 Arrangements will be made for special assessment of the impact before the establishment, of very large industrial units proposed in tribal dominated districts, in the context of the special problems of tribals, their culture and proposed rehabilitation.

    10.11 Action is being taken to redefine the periodicity of renewals of environmental clearances and for the simplification of application forms for environmental clearance.

    10.12 An Inter-Departmental Committee has been set up under the Chairmanship of the Chief Secretary for the disposal of environmental clearances cases pending over three months.

    10.13 The Pollution Control Board, Environmental Planning & Coordination Organisation, and the Town & Country Planning Department will jointly publish detailed guidelines spelling out the requirements for obtaining environmental clearances. Copies of the guidelines will be made available to industries associations and entrepreneurs.

    10.14 Administrative procedures will be reviewed on a continuous basis with a view to streamlining and simplifying them and ensuring transparency. An Inter-Departmental Committee has been constituted for this purpose with the Chief Secretary as its Chairman. The committee also includes representatives of industries associations.

    10.15 The district and divisional level handloom officers, under the Directorate of Handlooms, will be strengthened.

    10.16 To strengthen the development of Cottage and Village Industries and to give it adequate administrative support at the district level, it has been decided to designate a functionary of the District Industries Centre as Additional General Manager (Village Industries) and to entrust him with the responsibility of developing Cottage & Village Industries at the district level.

    The Industrial Policy & Action Plan, 1994 give new impetus to industrial development in the State in the context of national & international development. It will encourage regional balanced growth. It will help forge new and strong linkages between cottage & village industries, the small scale sector and large and medium industries and also help in creating fresh employment opportunities. This policy document will contribute towards establishing a work culture marked by continuing interaction with industries associations and entrepreneurs.

    The Industrial Policy and Action Plan, 1994 is a long term pronouncement of the Government of Madhya Pradesh on the industrialisation of the State. It will remain in force for five years.