Minimum governance, maximum sops: KCR

Hyderabad: The Telangana government on Thursday unveiled the much-awaited industrial policy framework. Introducing the Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS) Policy Framework for State of Telangana (2014) in the State Legislative Assembly, Chief Minister K Chandrashekar Rao described the new policy as first of its kind in the country.

• CM assures to free industry from inspector raj
• Mega projects to be cleared in 15 days
• Zero tolerance towards corruption, harassment
• Micro and small enterprises to get major boost
• Special package for SCs/STs,women and physically challenged
• Industrial parks to be given the status of local body
• Direct loan facility to Dalits
• 100 crore to TSIIC for infrastructure development
• Plug and play infrastructure in industrial parks
• Separate scheme for traditional art and handicrafts

The policy promises a right to timely clearances and self-certification. It also promises time limits for clearances which have been specified in the Act itself rather than in the rules. The policy assures 15-day clearance period for mega projects and penal provision if departments delay clearances. The Chief Minister said a common application form has been prescribed so that the applicant need not go to different departments.

The application process will be done by the Nodal Officer, like the Singapore Economic Development Board (EDB). A grievance redressal mechanism would be created. The applicant would be liable for action if the self-certification turns out to be false. “There will minimum inspection and maximum facilitation,” said KCR.

To address the pollution concerns, the industries have been classified into four categories - Green, Orange, Red 1 and Red 2. The industries only in Red-2 category would have to go to Government of India.

Therefore, almost 90 per cent of applications will be within the purview of the State Government.The new policy promises zero tolerance towards corruption. It assures peaceful, secure and progressive business regulatory environment. The State Government has identified 14 thrust areas. The policy offers attractive incentives to small and micro industries, ancillary and vendor development linked to major industry, special package for SCs/STs/Women/ physically-challenged, direct loaning to SCs/STs and physically-challenged, marketing assistance to MSME sector, programme for traditional art and handicrafts and plug and play infrastructure in industrial parks.

Apart from ensuring all necessary facilities, skill development activities will be taken up in industrial parks in collaboration with the industry. There will be rationalization of taxes to encourage local industry and all obsolete laws that impact industrialization would be reviewed. The industrial corridors and district industry parks will be established to encourage growth of industry across the State.

Specific targets for 2014-15

Through the new industrial policy, the State Government has set specific targets for 2014-15. They include New Pharma City and Chemical City with well-developed infrastructure, including waste management; development of the Hyderabad-Warangal Industrial Corridor; development of Warangal as the textile hub of Telangana; food processing and seed production initiatives; exclusive aero-space and defence policy; mini-industrial townships along with industrial parks; direct loan facilitation to Dalit entrepreneurs; creation of a venture capital/angel fund; inter-state VAT rationalization on industrial inputs and outputs and review and reform of all age-old industry sector regulations, including labour laws.

Promising Rs 832.74-crore incentive in 2014-15, the Chief Minster said that there would be no backlog of incentives for SCs/STs entrepreneurs. The government has allocated Rs 100 crore to TSIIC for infrastructure development. “It is first time ever such a huge budget support being given to TSIIC,” he said.