Policy

New industrial policy to provide sops for SMEs

| Updated on: Dec 04, 2012

After a delay of about 21 months, the new industrial policy for Maharashtra is likely to be announced on Wednesday. The Industries Department would be placing the policy before the State Cabinet for approval.

A senior Maharashtra Government official told Business Line on condition of anonymity that the policy would focus on small and medium industries, by providing a number of incentives. To achieve uniform industrial development across the State, industries would be encouraged to set up units in districts which are on the lower rung of the Human Development Index (HDI), the official said.

Companies setting up new units in districts, which fall under the C, D and D+ category of the HDI, could also get a subsidy of 0.75 paise to Re 1 on every unit of power consumed by them, the official added.

The new policy will continue with some of the provisions of the earlier one, especially for mega units. It is also set to give additional incentives to medium, large and mega industrial units by providing 30 to 50 per cent subsidy on value added tax, the official added.

Industrial areas run by the Maharashtra Industrial Development Corporation (MIDC) have been engines of growth for the State. But the blue and white collar workers face a lot of problems, while working in these areas,

While most have to commute over a long distance for their homes, many face the lack of hospitals and shops in the vicinity. Therefore, the policy aims to give a push for integrated industrial areas, which will have residential zones, schools, shopping malls and other civic amenities, the official said.

The policy got delayed because the departments concerned took their own time to study the various provisions. There was also a time lag in appointing a full-fledged secretary for the Industries Department, which also hamstrung the decision process, the official added.

The current policy was announced in 2006 and it was supposed to lapse in March 2011. But the Industries Department has kept the policy alive by giving six month extensions.

> rahul.wadke@thehindu.co.in

Published on November 22, 2017

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