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 Madhya Pradesh State Industrial Development Corporation Limited

 

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Economic Development Policy
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GOVERNANCE

 The new strategy for industrialisation envisages refocusing government interventions. Facilitation more than regulation shall be the cornerstone for government initiatives in industrial development. Deregulation, decentralization and self-certification are the adopted mantras of the State. The State will energize the existing institutional framework and streamline administrative processes to deliver high standards of governance and facilitation.
 
» Adoption of the Industrial Area Development Authority Model for Development of Industrial Estates. In order to provide for the integrated and planned development of industrial areas in the state into well-planned industrial townships and for matters connected therewith, the State is contemplating the constitution of Industrial Area Development Authorities (IADA). The IADA, apart from providing a single point of interaction to industry will also facilitate the decentralization of industrial development. It will have control over the problems arising in a particular area on account of industrialization. It will also ensure that the revenues generated from an industrial area are ploughed back into provisioning and O&M of infrastructure for industry in that area. The Authority will be a body corporate with representation on the board from government, local industry, MPSIDC etc. The MP Industrial Area Development Act will be passed by the Legislative Assembly to constitute an Industrial Area Development Authority. All activities relating to the development, regulation, levy of taxes, raising of resources and marketing of the said area shall be the responsibility of the Authority.

All the powers and duties being exercised by any Panchayat, Municipality, Notified Area Committee or any other local body in respect of that area or any part thereof, shall on constitution of the Authority, be exercised and performed by the Authority, to the extent of the powers and duties conferred and imposed by the MP Industrial Area Development Act.
 
» Deregulation & Decentralization. The State has been one of the premiers in the introduction and practice of deregulation and decentralization. A process of Self-Certification has been introduced to simplify procedures and cut red tape. The state has attempted to significantly decentralise decision-making at all levels.
» Project Report Cost Reimbursement. The promoter shall file the application for reimbursement, duly certified by a Chartered Accountant, with details of project report cost and capital investment at the district office of Industry and Commerce. The powers for acceptance or rejection have been delegated to General Manager, DTIC.
 
» Quality Certification Cost Reimbursement. Self certified application for reimbursement of expenses shall be presented before the General Manager, DTIC who shall have complete authority.
 
» Exemption of certain category of Boilers from inspection. Boilers of upto 1000 sq.m. heating surface area shall be exempt from inspection. The promoter shall instead provide a certification from a responsible authority to the General Manager, DTIC along with the necessary fees. The following shall suffice as responsible authority:
 
» Mechanical / Thermal Engineer with at least 2 years experience in the maintenance of Boilers
» Lecturer/ Reader/ Professor in a recognized Engineering College
» Chartered Engineer
 
» Registration under Commercial Taxes. Post establishment of unit and prior to commencement of sale, the receipt number attached to the acknowledgement by the Department of Commercial Tax, of intimation that the first sale has been made shall be treated as the permanent sales tax registration number.
 
» Simplification of procedure for obtaining a High Tension (HT) Electricity Connection. A duly certified ‘line map’ and subsequently ‘work completion certificate’ by a grade 'A' contractor or a qualified person (certified by the district level committee) along with applicant's self-certification shall be considered as necessary permissions for a HT connection.
 
» Pollution Control. The Housing & Environment department shall issue a list of Dangerous, Hazardous & Polluting Industries which will be required to get an NOC from the Pollution Control Board. All other industries, in the open list shall be eligible for fast track clearances.
 
» Permission for Factory Licence. The procedure of Land Owner / Entrepreneur informing the authorities along with an Industrial Safety Certificate from a Chartered Mechanical Engineer for obtaining a Factory Licence has been introduced.
 
» Diversion of Land. Prior to commencement of development / construction work, the land owner shall intimate the SDM and the SDM shall impose the changed Land Revenue, for conversion of land from agricultural land, from the date of commencement of work and make the necessary changes in his records.
 
» Industry Facilitation. The Policy recognizes the promotional/ facilitative role of the government and the importance of motivating entrepreneurs by disseminating timely and relevant information to nurture, rejuvenate and develop industry. To provide for a transparent decision making process and expedite approvals and clearances, the government shall institute a Single Agency System.
» There will be only one High Level Industry Facilitation Committee, chaired by the Chief Secretary for Large & Medium industries to approve all investment proposals in excess of Rs. 50 crores in all sectors including Industry, Tourism, IT, BT, Health Care, Agro Food Processing & Infrastructure. The composition of the Committee shall be suitably modified to include the concerned officials;
 
» The State Level Industry Facilitation Committee under the Chairmanship of the MD, MPSIDC, will henceforth consider and approve all proposals upto Rs. 50 crores in each case including Industry, Tourism, IT, BT, Health Care, Agro Food Processing & Infrastructure. The composition of the Committee will also be modified to include officers of the concerned departments and agencies;
 
» The District Level Industry Facilitation Committee headed by the General Manager, DTIC, will henceforth examine all proposals in all sectors with investment of upto Rs. 2 crores.
 
Audyogik Sahayata Kendra (ASK), a fast track facilitation / escort services cell within the Madhya Pradesh State Industrial Development Corporation (MPSIDC), will act as the nodal agency to guide and provide assistance to the entrepreneurs as well as to obtain the required clearances/ consents/ approvals/ registrations/l license from the various departments at the implementation stage of a project.
 
» ASK will market the State and establish contact with potential investors. It will have a strong high profile presence in Delhi & Mumbai.
 
» To reduce the multiplicity of Application forms, a Composite Application Form (CAF) for making applications for ‘fast track clearances’ shall be introduced.
 
» A standard timetable for processing investment applications will be developed for time bound response to entrepreneurs. All departments would need to respond on any modifications on the timetable within 3 days of receiving the application from ASK.
 
» Review Labour Laws and Procedures. A large number of laws exist to carry out the provisions of the Constitution concerning labour.  The main need is to:
» Simplify and rationalize them
 
» Review and modify them with a view to making them beneficial to the workers as well as hassle-free to the investor

In pursuance of the above strategy, the following steps would be taken on priority by the State.
 
» Simpler Labour Laws: As soon as the recommendations of the Second National Commission on Labour (NCL) are received, action would be taken to amend central laws, in their application to Madhya Pradesh, to the extent necessary.  Review of (a) State laws, and (b) of State rules framed under various Central and State laws shall be initiated right away, and their simplification/ rationalisation would be completed upon receipt of the NCL recommendations.  Provisions pertaining to maintenance of Registers and Filing of Returns by the smaller units will, in particular, be considered for further simplification. The period of renewal of licences under the Factories Act has already been increased from one to five years.
 
» Effective & hassle-free implementation of laws: ‘Abolition of Inspector Raj” has been a stated policy of the State Government for quite some time now, and has been implemented in the context of labour laws as well.  However, multiplicity and the element of harassment in inspections will be further eliminated.  At the same time, laws will be effectively enforced.
 
» An especially Facilitative Environment for the Thrust Areas: The State is committed to according the highest priority to sectors which are vital to its economic development, e.g. Power, Communications, IT & Bio-technology. Necessary relaxation/ adjustments will be considered in the Labour laws as applicable to these industries, so as to foster investment in them.  Already, IT establishments have been allowed 24 hours 7 days. SEZs to be established in the State shall also enjoy a similar facilitative labour-law environment.
 
The above amendments and adjustments will be made without compromising on the basic quarantines which the Constitution provides to workers.
 
» Environment Protection. Pollution control and environment protection has been accorded priority. A scheme has been introduced for assistance in the form of cash subsidy to units reprocessing agricultural and urban waste at the rate 25% of the investment made, upto a ceiling of Rs. 25 Lakhs. Procedures for environment clearances will be simplified. Madhya Pradesh Pollution Control Board will specify a list of hazardous / dangerous /polluting industries where prior consent / no objection certificate is required, other establishments will be deemed to be exempt.
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