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Nearly six months after
Telangana was born, the state government unveiled a new industrial policy
framework on Thursday, promising rationalisation of taxes and offering
incentives, eyeing up to 5 per cent higher manufacturing sector growth than
national average.
"Innovate in
Telangana, Invest in Telangana, Incorporate in Telangana" would be the
motto of industrialisation in the state, the government said. The vision
for the new state's industrialisation is 'Research to Innovation; Innovation to
Industry; Industry to Prosperity'.
"It is strongly
believed that with the new industrial policy in place, a growth rate of 4-5 per
cent greater than the national growth rate in the manufacturing sector can be
achieved," the policy document said.
To supplement Research
and Innovation Circle of Hyderabad (RICH) and encourage innovation and
incubation, the government would create a Research to Market Fund (RMF) to
encourage entrepreneurial activity.
It would provide a
matching contribution of up to Rs 100 crore to RMF for amounts contributed by
private venture capitalists and angel investors. The
state government would remove and revise archaic and outdated laws that
adversely impact industry and industrialisation.
The government noted
that distortions in tax structure lead to evasion of taxes and clandestine
transport of industrial inputs and outputs to neighbouring states, which may
have advantageous tax rates.
"To address this
problem, inter-state tax rationalisation on industrial inputs and outputs with
states like Karnataka, Maharashtra, Gujarat and Tamil Nadu will be brought
within a short span of time," the policy said.
There would be enhanced
incentive packages for Scheduled Castes, Scheduled Tribes, physically
handicapped and women entrepreneurs. Mega projects with an investment of
over Rs 200 crore in plant and machinery or employment above 1,000 people will
receive tailor-made incentives in addition to standard large- category industry
incentives, it was stated.
The government would
consider providing incentives to entrepreneurs in
areas like stamp duty reimbursement, land cost rebate, land conversion cost and
power cost reimbursement, under its T-IDEA (Telangana State Industrial
Development and Entrepreneur Advancement) incentive scheme.
"The cornerstone of
the policy would be zero graft and zero tolerance to corruption, and the
decision-making in all Departments in Telangana will be transparent. Department
heads will be held responsible for all acts of omission and commission by staff
under their jurisdiction," it said.
An online and help-desk
grievance redressal system would be put in place where entrepreneurs will be
encouraged to report instances of corruption or any delay in
approvals. Timely and strict disciplinary action would be taken against
those employees who violate the parameters of the industrial policy framework.
The policy will make
special provisions for SME and micro sectors, including making available
adequate number of smaller plots in industrial parks for them. Unveiling
the policy in the Assembly, Chief Minister K Chandrasekhar Rao said the new
framework intended to provide a business regulatory environment "where
doing business would be as easy as shaking hands".
"Innovation and
technology will drive the industries of Telangana," he added. The
thrust areas identified by the Government include life sciences (including bulk
drugs and formulations), IT hardware, precision engineering (including
aerospace, aviation and defence), food processing, automobiles, textiles and
apparel, plastics, gems and jewellery.
Simultaneously, a Bill
was also introduced in the Assembly to enact the Telangana State
Industrial Project Approval and Self-certification System
(TS-iPASS) that would be a "single window without grills" for
clearing all investment proposals.
The Bill was passed late
in the evening after certain amendments proposed by the Opposition parties were
rejected by the House.
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