MUMBAI: After a delay of one year, the Maharashtra government on Wednesday cleared the new industrial policy which promises new investments of over Rs 5 lakh crore in the next five years and hopes to create 20 lakh jobs. The main focus of this policy will be to attract investments that would generate higher levels of employment, said people familiar with the development.
Another important aspect is to allow developers of Special Economic Zones (SEZs) to virtually exit their original projects and build industrial parks, including residential townships. Chief minister Prithviraj Chavan will officially announce the details of the new industrial policy in Mumbai on Thursday.
A key feature of the policy is to allow Maharashtra Industrial Development Corporation (MIDC) a higher Floor Space Index (FSI). It will be given 0.5 extra FSI so that land in its possession can be better utilised, said people within the government who didn’t want to be identified.
The new policy also offers some industries that invest in backward regions a waiver from electricity duty (tax on electricity consumption), stamp duty, and local taxes like octroi. It also offers micro, small and medium industries a concession of one rupee per unit in electricity tariff if they set up units in state’s backward regions like Vidarbha and Marathwada.
The policy also offers these industries 5% subsidy on capital investment in talukas which are classified as C and D for development purposes. The state plans to attract domestic as well as foreign investors by doling out sops.
Speaking on the issue last week, CM Prithviraj Chavan had said, “During the 11th Plan period, the state attracted 4,630 projects, with a total investment of more than Rs 6.5 lakh crore and employment potential of above 22 lakh. We have received the highest FDI in the country.
“Under the Cluster Development Programme, the Government of India has approved the proposals of the state to set up 32 clusters of micro and small enterprises, which will provide direct employment to nearly 1,00,000 persons during the next three years. In order to make more land available for industrial activity in the state, the government has decided to permit the development of de-notified SEZs as Integrated Industrial Areas (IIA).
This is expected to attract more investment.” There was some speculation earlier about certain differences between the finance department and the industry ministry over some important issues related to tax exemptions in the new industrial policy, which may have delayed it. It is believed that Chavan reworked many aspects of the new policy. The state cabinet also discussed the policy for over three hours on Wednesday before finally clearing it. (Source ET)Â To View Government Jobs CLICK Here.
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