The Hindu Business Line : Kerala unveils industrial policy

Highlights
Separate panels to clear investment proposals.
Special incentives to investments of Rs 100 crore and more.
Product-specific special economic zones to be encourgaged.

Thiruvananthapuram June 13 The Kerala Cabinet has cleared the Government's Industrial and Commercial Policy, which, among other things, lays emphasis on strengthening the single-window clearance system and simplifying licensing procedures to make the State an investor-friendly destination.

The Kerala Single-Window Clearance Act, 1999, will be amended for the purpose and under the new dispensation, due authorities will be assigned to designated committees.

A State-Level Clearance Committee, chaired by the Principal Secretary, Industries and Commerce, will be constituted to accord clearance to investment proposals up to Rs 25 crore in plant and machinery.

A State High-Level Clearance Committee with the Chief Minister as Chairman will consider proposals above Rs 25 crore. And decisions of the empowered committee will be binding on all departments concerned.

INCENTIVES

The Government will provide incentives for investments in supporting facilities and the equipment and systems that are eligible for subsidies will be notified. This will be done with the concurrence of the Finance and Planning departments.

The policy proposes to extend subsidy up to 50 per cent of the cost of capital equipment used in pollution control, effluent treatment and other related operations, subject to a maximum of Rs 25 lakh.

Besides, special incentives package/facilities to large investments of Rs 100 crore and more will be considered on a case-to-case basis by the State High-Level Committee.

It has also been proposed to extend incentives to all types of enterprises in line with the Micro, Small and Medium Enterprises (MSME) Act of the Union Government. The existing negative list will be modified so as to extend the coverage of incentives.

TECHNOLOGY UPGRADITION

The policy also gives priority for strengthening the State-level public enterprises by technology upgradation, diversification, and introduction of an efficient management system. There will also be efforts to bring synergy between them and Central public sector undertakings.

The traditional industries will be equipped with sophisticated and advanced technology and they will be made to focus on high-end products. Government agencies engaged in the promotion of traditional industries will be restructured.

The Government will encourage product-specific special economic zones, which are conducive to the State's conditions. The Kerala State Industrial Development Corporation (KSIDC) and the Kerala Industrial Infrastructure Development Corporation (Kinfra) will set up sector-specific SEZs in Kozhikode, Kannur, Kasargode and Malappuram. The policy proposes establishment of three industrial corridors, which will qualify as `commercial districts'. They are: IT and ITES corridor from Kazhakuttam to Kovalam in Thiruvananthapuram and from Kazhakuttam to Kollam along the national highway bypass; biotechnology and hitech electronics corridor along the Seaport-Airport road in Kochi; and food processing and textile corridor from Kanjokode to Walayar along the national highway in Palakkad.

A transparent fast-track mechanism will be evolved for land acquisition for the development of infrastructure in the State through public-private partnerships. Also, a `land bank' will be created through a new company for acquisition of land at strategic locations for the orderly development of industries.

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