Madhya Pradesh's Industrial Policy &
Action Plan 1994 aims at accelerating and strengthening
industrial development, attracting more capital
investment, ensuring balanced regional development and
providing additional employment opportunities to help
improve the standard of living of the people.
Taking into account the rapid economic changes taking
place at the national and international levels, the
policy aims to reduce the regulatory role of the
administration and strengthen, instead, its role as a
facilitator. It spells out measures to augment the
physical and human resource base and uses taxation as an
instrument to increase employment generation and develop
synergistic linkages between different sectors.  Developing
Infrastructure
Enhance Power
Availability
Growth Oriented
Tax Concession
Human
Resource Development and Employment Generation
Measures
for Cottage and Rural Industries
Measures for
Small Scale Industries
Special
Facilities for Thrust Sector Industries
Responsive
Administration
 Developing Infrastructure
The 23 Industrial Growth Centres (IGCs) are the hubs
of development, with facilities being further enhanced
here.
Allot land/sheds to entrepreneurs on 99 years
lease
Establish Container Depots at various centres.In
addition to the one at Pithampur that is fully
functional, two now at Raipur and Gwalior to
become operational very soon.
Air Cargo Complex to be set up at Indore
Encourage industrial associations to establish
Tooling and Testing Centres. The Indo-German Tool
Room Complex to become functional shortly at
Indore.
Develop industry-specific complexes for fields
like electronics, garments,leather, food
processing, chemicals, bio-tech, etc.
Private sector participation in infrastructure
enhancement is to be encouraged by providing land
at concessional rates or by way of equity
participation for purposes such as :
-Facilities like schools, medical and
recreational centres by industrial associations
in every IGC
- Development of Industrial Model Townships
- Establishment of Mini Growth Centres for the
tiny and small scale sector
Air transport facilities to be greatly increased.
Pursue the upgradation of Bhopal, Indore and
Raipur airports to international status. Increase
frequency of existing air services and put more
IGCs on the air map. Actively seek private sector
participation in this regard.
Enhanced
Power Availability
All possible steps are being taken to reduce both the
quantitative and qualitative shortfall in the supply of
power. Here too the private sector is to be greatly
encouraged to participate in increasing the generation
capacity.
- Grant permission within 45 days to entrepreneurs
for captive generating units up to 25 MW
capacity.
- For units of higher capacity, permission from
Central Electricity Authority, MPEB to forward
applications with in 15 days and make every
effort to obtain an early approval.
- New industries to be given a power connection
within 30 days of completing all formalities and
completion of line extension work.
- l00% EOUs and continuous process units to be
exempted from power cuts as far as possible.
- Special facilities for entrepreneurs setting up
power units based on hydro (upto 3 MW capacity)
or non-conventional sources of energy
Growth
Oriented Tax Concessions
- Sales/Commercial Tax exemption upto 250% of
capital investment in fixed assets for a period
of 7 years or deferment upto 300% for a period of
9 years.
- No capping on quantum of tax concessions for
Thrust Sector industries having at least Rs. 1
crore investment in plant & machinery.
- Units set up in 'No Industry Blocks' to get same
concessions as units in category 'C' districts.
- Additional investment on expansion by existing
units is eligible for commercial tax concessions
as available to new units Additional concessions
are available for certain categories of units :
Those in MPAKVN Growth Centres.
Units set up by women entrepreneurs,
SC & STs and OBCs.
New units in cooperative sector with
plant and machinery investment of at least Rs. l
crore and membership of at least l00 persons.
l00% EOUs.
Units being set up by NRIs with
investment of at least Rs. 2 crores and NRI
investment at least 50% of promoter's equity.
Human Resource Development and
Employment Generation
- Upgrade training programmes in Polytechnics and
ITI's to match industry requirements.
- Special emphasis on development of
enterpreneurship and employment opportunities for
women, SC & STs, OBCs and the poor.
Measures For Cottage and Rural
Industries
- Action Groups at the block, District and
divisional levels.
- 4,000 individuals to be trained annually over the
next 3 years in the khadi & village
industries sector, handlooms, handicrafts and
leather crafts.
- Provide employment to at least 1.8 lakh
individuals.
- NABARD projects to be implemented, particularly
in tribal districts.
- Special attention to the silk industry and
handloom sector.
- Encourage craft persons to upgrade skills, adopt
new techniques and develop new designs.
- Establish a centre to train rural leather
workers.
Measures
for Small Scale Industries
- Special scheme to deal with the problem of
industrial sickness.
- Incentive schemes to help develop synergistic
linkages with the medium and large sectors.
- Strengthen existing marketing arrangements
- Quarterly review by a committee of officials and
association representatives to ensure timely
payments
- System for joint appraisal by FIs and banks for
fixed and working capital requirements
- Periodic review of the working of M P Financial
Corporation to ensure effective financial
arrangements for SSI, with participation of
State-level small industries associations
- High-powered committee under the chairmanship of
the Chief Minister to accelerate development of
SSIs
- Establish 1 lakh new small scale enterprises in
the next 5 years
Special Facilities For Thrust Sector
Industries
The scope of the Thrust Sector has been enlarged to
include the following industries:
| Automobiles |
Auto components |
Agro-based |
Agri inputs |
| Fish canning |
Food processing |
Leather |
Life-saving drugs |
| Mineral-based |
Readymade garments |
Telecommunication |
Sports goods |
| Silk |
White goods |
Petrochemicals |
Agri Implements |
Apart from no capping on the quantum of tax concessions
available to such industries (provided investment in
plant & machinery is at least Rs. 1 crore), certain
thrust sector industries will also be provided other
facilities as given below:
- Electronics: Electronics Testing and Development
Centre to become operational shortly at Indore
and a specialized Technology Park to be set up.
- Food processing and Agro-based industries:
Industrial units to be permitted to adopt entire
tehsils to ensure uninterrupted raw materials and
the cooperative sector to be encouraged.
- Soya processing: Value addition to be encouraged
and inventory holding restrictions removed. The
issue of raw material gradation to be examined.
- Mineral-based industries: Private sector
participation in mining to be encouraged and a
Diamond Park set up.
- Garment, Leather and Silk: Development of
readymade garments complex at Indore to be
hastened and a Working Group including
representatives of these sectors constituted .
Responsive
Administration
The administration is to play the role of a facilitator
rather than a regulator.
- The single window system at DICs being
strengthened for speedy disposal.
- Sales tax checkposts on the State boundaries have
been abolished.
- The powers of sales tax inspectors and officers
to inspect industrial and commercial
establishments have been withdrawn.
- Powers of renewing licenses under the Factories
Act being decentralized.
- Duality of administrative functioning in the
Industrial Growth Centres being removed.
- Nodal officers designated with the responsibility
of ensuring timely availability of facilities and
concessions.
- Procedures relating to environmental clearances
have been simpler, quicker and more transparent.
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