State too demands economic zone

Although Maharashtra is the most industrialised state in the country, the business community was surprised when the Commerce Minister failed to announce a Special Economic Zone for the State in the latest Exim Policy. Such zones offer several tax concessions and boost export and industrial activity.

He also mooted setting up zones in backward areas of Maharashtra where quot;old labour lawsquot; could be relaxed to attract investment. Labour could be taken on contract in such areas, he said. quot;This would be exploitation of labour, but China has done it8230; large industrial areas set up in backward places have not attracted investment despite incentives,quot; he added.

The state government would soon announce its industrial incentive package scheme to boost industrialisation in the backward areas. The Democratic Front government, after coming to power last year, had scrapped the incentive package. The package would primarily be labour oriented and investor friendly, he added.

He said the issue of mill lands had been politicised to such an extent that it was difficult for any government to arrive at a decision. The best time to have sold the mill land was in 1994-96 when real estate prices were ruling high, he felt. quot;I am of the opinion that we must make use of this land, but not at the cost of people working in them,quot; he added.

8220;Lot of downsizing is required and a committee under Chief Minister Vilasrao Deshmukh will continuously monitor the state expenditure and curtail it wherever necessary,8221; he said. The disinvestment committee for loss-making and sick public sector undertakings PSUs would be given authority to take its own decisions, Patil said.