The Industrial Policy launched in May 1994 was in force till 2003. The new Industrial Promotion Policy would be effective for the industries commencing commercial production on or after April 01, 2004. This policy would be effective from 1st April 2004 for a period of five years. Rules and procedures shall be modified in accordance with the new policy. However, capital investment made prior to this new policy shall still be governed by old rules and procedures prevailing at the time they were made. Entrepreneurs, Industrialists, Industry Associations, Financial Institutions and top officials of banks were consulted while preparing the draft of Industrial Promotion Policy and their suggestions and ideas have been incorporated in a meaningful manner. Employment generation is one of the major objectives of the new Industrial Promotion Policy. An initiative for this purpose has been taken in the state to launch a new employment scheme for the educated unemployed youth belonging to middleincome group.
2. Objectives Of Industrial Promotion Policy
To make state administration industry friendly by simplifying rules and procedures
To accelerate the pace of industrialization and make Madhya Pradesh industrially a leading state
To maximise employment prospects
To attract NRI and foreign investment by developing world-class infrastructure
To create congenial environment for the development of small, medium and large industries.
To ensure balanced regional development by generating employment in the non-farm sector
To chalk out special packages for removing industrial sickness
To integrate the different employment oriented schemes in order to provide employment opportunities on a sustainable basis
To rationalize commercial tax rates to make the state's industries competitive vis-à-vis industries in other states
To provide direction to industrialization, keeping in view the available local resources and the existing industrial base.
To ensure private sector participation in the state’s industrialisation
To financially strengthen the undertakings of Department of Industries, enabling them to play a pivotal role in the promotion of industries
3. Strategy for Industrial Promotion
Providing incentives and facilities in the state to achieve objectives of Industrial Promotion Policy and ensuring effective implementation of planned strategy.
An Employment Board has been set up for employment generation under which policy for employment and self-employment schemes will be framed and monitored.
Madhya Pradesh Trade and Investment Facilitation Corporation (TRIFAC) will be set up.
In the process of industrialisation maximum participation of private sector will be ensured.
In order to promote investment, the rules of the business of the State Government would be amended and single window system would be strengthened and made effective and dynamic by enacting 'Industrial Facilitation Act'
Technological up-gradation, modernisation and development of industrial units would be encouraged.
Clusters of the industries would be identified and necessary steps will be taken to remove their deficiencies related to infrastructure, finance, and marketing and technology.
Financial concessions will be provided to promote small, medium and large industries.
Appropriate step for the development of the sectors of information technology, biotechnology, automobile, pharmaceutical, food processing, herbal industries will be taken by considering them as thrust sector industries.
Rules for the rehabilitation of sick and closed industries will be simplified and special package will be given for their promotion.
