New Gujarat industrial policy 8212; Infrastructure over incentives

GANDHINAGAR, JUNE 18: Concerned about the industrial backwardness in parts of Gujarat despite the existing incentive policy, the State go...

GANDHINAGAR, JUNE 18: Concerned about the industrial backwardness in parts of Gujarat despite the existing incentive policy, the State government is now veering to the view that the 8220;incentive war8221; should end at the earliest and that the emphasis should shift more towards quot;infrastructure8221; in the proposed 2000-2005 State Industrial Policy.

According to Sachivalaya sources, the State will soon set up a high-level experts committee to study the growing industrial backwardness in several talukas and suggest measures to bring about industrial development based on socio-economic parameters in the areas identified as industrially backward.

Apparently alarmed by the quot;incentive war8221; raging between Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu, the State government is reported to have decided to approach the National Development Council8217;s NDC sub-committee with a request to end this contest.

Sources said that though the NDC8217;s sub-committee comprising of chief ministers of various states had already recommended an end to the 8220;incentive war8221;, the Gujarat government would again request the NDC to end this war at the earliest, since the State Finance Department had expressed its reservations about the incentive and subsidy culture.

The sources conceded that Gujarat was fast losing a competitive edge as the water, power and sales-tax rates as well as Gujarat Industrial Development Corporation GIDC land prices are much higher than the other industrially advanced states in the country.

Similar concern was expressed at a high-level meeting between Chief Minister Keshubhai Patel, his senior Cabinet colleagues and officials here on Thursday, to review the progress of the 1995-2000 State Industrial Policy and the incentive policy.

The meeting was attended, among others, by Industries Minister Suresh Mehta, Finance Minister Vajubhai Vala, Chief Secretary L N S Mukundan and senior officials K V Bhanujan and C K Koshi.

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Directing the concerned officials to begin an exercise to evolve a new State Industrial Policy for 2000-2005, as the term of the present policy expires in August next year, the Chief Minister suggested that the thrust of the new policy should be on the Information Technology and Agro-industries sector keeping in view the fast changing industrial scenario in the country.

Suresh Mehta said that there should be a balance between backward area development and industry specific development since most of the industries were coming up only along the Golden Corridor stretching from Mehsana in North Gujarat to Vapi in South Gujarat.

The minister suggested that while evolving a new industrial policy, 8220;we8217;ll have to take into account socio-economic factors and the competitive market in this era of liberalisation8221;.