Himachal Seeks Extension in Industrial Package

New Delhi: Himachal Government urged the centre to extend the industrial package from March 2010 to 2013 so that the industrial development of the State can make a transition from infancy to maturity without any hindrance. The demand was raised by Kishan Kapoor, Industries Minister while speaking in the Industries Ministers Conference at New Delhi today.
Kishan Kapoor Industries Minister said that process of industrialization in hill States of Himachal and Uttrakhand was given a spurt by the Central Investment Package of 2003 which was still at take-off stage where continual governmental support and fiscal and tax concessions and subsidies are required urgently. He said that the higher cost of development of land and infrastructure on account of rough mountainous terrain, inaccessibility, higher cost of transportation and the absence of rail links and airports underscores the need of special concessions and incentives. The industrial enterprises in hill areas operate at lower margins because of the higher operating costs and thus there is a need for subsidizing certain costs by providing concessions such as excise duty and tax exemptions. He said that all these measures increase the competitiveness of the industries in hill areas and ultimately lead to a self sustained industrial growth. He pleaded for continuing of transportation subsidy schemes and requested for making proper budgetary provision so as claims and reimbursements are settled in time bound manners..
Industries Minister said that due to effective implementations of central industrial package, 12390 industrial projects with an estimated investment of over Rs. 39667 crore and employment potential of 4, 46,627 were approved during the period January 2003 to September 2009. Out of these, an investment of Rs. 6058 crore has already fructified providing additional employment to 78179 people, while the pre package figure of industrial investment in the State stood at Rs.2610 crore and employment to 154775 persons.
Kapoor expressed concern over non availability of adequate physical and social infrastructure for industrial development such as rail and road network, airports, housing stock for labour, educational, commercial and business facilities and requested the Central Government as well as captains of industries for their continual support and assistance in developing these. He said that State Government is already working on plans to develop the Industrial corridors along the periphery of the State. He said that infrastructure facilities in other industrial areas are also being improved to ensure availability of quality power and better communication facilities. He requested the Government of India (GOI) to provide adequate funding under the existing Central Government schemes such as Assistance to the State for Infrastructure Development for Exports (ASIDE), Integrated Infrastructure and Upgradation Scheme (IIUS), Growth Centre Scheme etc. for Hilly States so that they are not left at a disadvantage in comparison to bigger states. He suggested that specific schemes for development of infrastructure for industries in general or for a cluster of similar industries such as pharmaceutical, food processing, textile, light engineering, IT industry, Bio-technology industry and related service enterprises should be devised taking into cognizance the small size of industrial areas in hilly regions, high cost of development of infrastructure including roads, provision of common facilities like effluent treatment plants, provision of utilities like power and water, as also development of such locations as industry centric townships to ensure development of islands of industrial activities in hilly regions in a holistic and comprehensive manner.
He said that despite all the challenges of development, the State during the last few years has achieved significant success in attracting entrepreneurs. He said that 426 Medium & Large Scale and 35715 Small Scale Units have been established with an investment of Rs. 8667.31 crore and providing employment to 2.33 lacs people in the State. He said that industrial sector is contributing nearly 17% to the State Domestic Product and this share is expected to rise further in coming years.
He said that the State has tremendous potential for encouraging industrial projects in certain core sectors like horticulture, food processing, herbal and plants based, pharmaceuticals, bio-technology, IT, handloom and handicrafts, electronics, precision engineering, textiles etc. which are non polluting and clean industries. He said that state will become focal point for green and clean industries in coming years and added that the State enjoy other distinctive advantages like stable polity and political and social consensus , clean and green environment, cordial labour relations, transparency in administration, easy accessibility of officials, reliable and cheap power, honest and hardworking workforce and the mechanism of Single Window for speedy clearance for medium and large projects.
He said that State Government has also considerably simplified the procedure for the transfer of land for industrial purposes and now it is possible for the entrepreneurs to purchase private land for industrial, tourism and hydel projects within a very short time and with minimum formalities.

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