Alarmed by media reports about several projects inked during the first three Vibrant Gujarat Global Investors Summits (VGGIS) having failed to fructify,the Narendra Modi government has initiated corrective measures.
This aims to ensure speedy and effective implementation of investment proposals made by entrepreneurs this year and in all future VGGIS meets.
Among other measures,the government has decided to simplify the time-consuming procedures to help industrialists obtain clearances for necessary infrastructure they need to set up in the state without any hassles. For this,the government is not averse to emulate the best practices followed by other industry-friendly states like Andhra Pradesh,Tamil Nadu,Rajasthan and Orissa.
For smoother and faster implementation of projects inked by entrepreneurs in the form of memoranda of understanding (MoUs) during investors summits,the government has decided to set up three committees at as many levels one headed by the chief secretary at the state-level,another headed by the principal secretary (Industries) at the department-level and the third headed by the collector concerned at the district-level.
The state-level panel headed by the chief secretary will deal with only big projects,ensuring speedy clearances and approvals,while the committee led by the principal secretary will take care of medium-size proposed units. The district-level committees,also involving district industries centre (DIC) officials,will deal with the investment proposals committed by small players, said R J Shah,Principal Chief Industrial Advisor,Gujarat.
Shah,who had candidly confessed on the eve of VGGIS-2009 that it was not possible to achieve cent per cent success rate (of implementing the MoUs) and that the government was only a facilitator,told Newsline on Saturday that the government has decided to introduce an Investor Support System (ISS) and an Investment Monitoring System (IMS) to ensure effective monitoring of approvals,including that of MoUs signed at the VGGIS.
The government is in the process of developing specially designed ISS software to assist entrepreneurs in identifying suitable investment locations based on critical parameters,such as land requirement,gas and power availability,proximity to ports and airports and the like. The software will also provide detailed information on the availability of infrastructure up to the taluka-level in terms of road/rail connectivity,location of GIDC estates,industrial parks,SEZs,power and gas grids,and water among others.
Under the IMS,the government has introduced an online mechanism for monitoring approvals,including that of MoUs. The system enables effective interface between the entrepreneurs,the Industries Commissionerate,various line departments and district collectorates.
The government also plans to create a comprehensive web-based portal (WBP) to provide administrative guidelines to the entrepreneurs for speedy and time-bound processing of their applications.
The WBP,with enhanced tracking,monitoring and feedback capabilities,will help the investor submit the application at a particular place and receive permissions/clearances from there itself within the prescribed time limit.
The government has decided to strengthen the Industrial Extension Bureau,the District Industries Centres (DIC) and related offices in order to enhance their facilitation and information dissemination capabilities. We have already put in place the Land Banks in each of the districts across Gujarat to make land easily available for investors to set up their projects, said a senior Industries official.
At a review meeting held ahead of the VGGIS2009,the chief secretary had reportedly expressed his concern over the unavoidable delay in granting clearances and approvals,as also over the poor and tardy implementation of MoUs inked with entrepreneurs during the previous investment summits.
An official document (accessed by this newspaper) containing the minutes of the review meeting suggests that during the discussion,a serious concern was voiced over the contradictions within the departments concerned and the lack of clarity about procedures among these departments leading to confusion in the mind of investors.
At the meeting,the chief secretary not only directed the nodal officers to simplify procedures,but also stressed on the need for liberalising long-drawn processes.