The proposed industrial policy of the Uttar Pradesh government has not gone down well with an RSS-backed body, which has demanded that certain points in the draft be reconsidered. Throwing a spanner in the policy, Laghu Udyog Bharti, an RSS affiliate associated with small scale industries and having a network of MSMEs (Micro, Small and Medium Enterprises) in the country, said it is sore that there is no encouragement for the industries which have either closed down or are on the verge of closure. The blue print of the ‘UP Industrial Investment and Employment Promotion Policy-2017’, which promises ease of doing business, tax relief and continuous power supply and aims at promoting units in the backward Purvanchal and Bundelkhand regions, has already been approved by Chief Minister Yogi Adityanath.
The RSS affiliate aired its views even before the draft was uploaded on the website of the department eliciting suggestions and objections of people before it is finalised and presented before the state cabinet.
“Uttar Pradesh Chief Minister Yogi Adityanath on June 9 approved the draft of new industrial policy. The policy seems to be quite promising for the new industries, but there is no encouragement for industries that have either closed down or are on the verge of closure,” General Secretary of Laghu Udyog Bharti (Uttar Pradesh unit) Ravindra Singh told PTI on Sunday.
“We welcome the policy, but request the BJP government to reconsider some points in the draft of the policy,” he said.
Laghu Udyog Bharti is a confederation of numerous MSME units across the country and endorses the ideology of the Rashtriya Swayamsevak Sangh (RSS).
“The encouragement given to the MSME sector as compared to the mega projects is very less. The MSME sector is the backbone of the state’s economy and contributes tremendously in development of the state and in employment generation,” Singh said.
“Hence, the yardstick should have been the same for the MSME sector and mega industrial units in terms of financial encouragement,” he said.
Singh said office bearers of Laghu Udyog Bharti will soon meet UP Cabinet minister Satyadev Pachauri to voice their concern.
Singh was also of the view that one-time financial assistance should be given to those industrial units which have either closed down or are on the verge of closure to revamp themselves.
Meanwhile, industry body ASSOCHAM (Associated Chamber of Commerce and Industry of India) said the Uttar Pradesh government has to win the confidence of investors in the state to attract investment.
“The industrial policy of the state should be vibrant and incentive-driven,” ASSOCHAM president Sandeep Jajodia and general secretary D S Rawat told PTI after their recent meeting with Adityanath at Lucknow.
“FDI in UP stands at 0.02 per cent. Owing to absence of encouragement to investors, the current dismal situation is prevailing. If the state government does not give any encouragement, why should investors come? They will go to other states like Maharashtra or Gujarat,” Jajodia told PTI.
ASSOCHAM is willing to give suggestions to the state government for its new industrial policy, he said.
Rawat said ASSOCHAM is going to constitute a committee, which will study the industrial policy of various states such as Maharashtra, Gujarat and some southern states and give certain suggestions to the UP government.
“By July 15, we will give our recommendations to the UP government. Our focus will be on MSME as well as bigger industries and also on FDI,” Rawat said, adding that UP government had invited suggestions from different stakeholders for drafting its industrial policy.
Rawat noted that the industrial policy of the previous Akhilesh Yadav government had attracted foreign investment in warehousing, food processing and MSME, but it was not enough.
According to UP Industries Minister Satish Mahana, the government is all set to unveil the policy in the next 2-4 weeks.
He said the policy will seek to simplify the procedure for development of fundamental infrastructure and promote establishment of industries in Purvanchal and Bundelkhand regions.
It will also ensure time-bound approvals with special focus on IT start-ups, electronics, agriculture and food processing, dairy, handloom, film development and tourism sectors, besides others, he said.
Promoting food parks and restoring old glory of Kanpur, once called Manchester of the East, will also be part of the new industrial policy.
“We are coming out with an industrial policy within next 2-4 weeks. We will try that it is rolled out by June 26,” Mahana said.
The highlight of the policy will be uninterrupted power supply to the industries.
Besides, a single-window system will be set up to provide all facilities to potential investors under one roof, he said.