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Industrial Policy Framework For Bangaru Telangana
Highlights
The new State of Telangana is the result of a decade’s long struggle of people protesting against discrimination and injustice. While all other Indian States have progressed on all fronts in these years, the new State of Telangana has a lot of catching up to do, to fulfil the ambitions of its people.
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The new State of Telangana is the result of a decade’s long struggle of people protesting against discrimination and injustice. While all other Indian States have progressed on all fronts in these years, the new State of Telangana has a lot of catching up to do, to fulfil the ambitions of its people.
“Industrialisation holds the key for fostering economic growth, creating employment and ushering in prosperity to the people. It is my determination that the State of Telangana should emerge as the favourite destination for national and international investments”.
“I have accordingly decided to bring in a new Industrial Policy which will inspire both international and domestic industry groups, investors, and entrepreneurs to choose Telangana as their preferred destination. I personally promise a corruption-free and industry-friendly business regulatory environment, which will be rated as amongst the best in the world”.
“ Many of the Government schemes designed in the past suffered from an inherent bias, and hence needed a correction through a conscious process of reorientation and reformulation. This was the biggest challenge that confronted the Government of the new State”. These sentiments were echoed by the Hon’ble Chief Minister at the time of presenting the bill of “Industrial Policy Frame Work” in the State Legislature.
New Industrial Policy of Telangana
• Industrialization is the key strategy followed for economic growth and development for Telangana, the 29th state of the country.
• People of the new state have very high expectations from the Telangana State Government.
• Regarding the creation of jobs for the youth, promoting development of backward areas, maximizing growth opportunities by optimum utilization of the available resources, harnessing the talents and skills of the people and ushering prosperity in every household.
• Industrialization holds the potential for fulfilling all the dreams and aspirations of the people of Telangana.
Vision
• The vision for industrialization of Telangana is “Research to Innovation; Innovation to Industry; Industry to Prosperity”.
• The industrial policy framework will be driven by the slogan – “In Telangana—Innovate, Incubate, Incorporate”.
• The policy framework intends to provide a business regulatory environment where doing business would be as easy as shaking hands.
• Innovation and technology will drive the industries of the Telangana State.
• The Government realizes that industrial development requires large scale private sector participation, with the government playing the role of a facilitator and a catalyst.
• The government is committed to provide a graft-free, hassle-free environment in which the entrepreneurial spirit of local, domestic and international investors will thrive, and they’ll set up industrial units in the State of Telangana – their preferred investment destination.
• The new Industrial Policy is the instrument that will help translate the vision of the Telangana State Government into action.
The Telangana State Industrial Policy is rooted in certain core values, as follows:
• The Government regulatory framework shall facilitate industrial growth.
• Entrepreneurs will thrive in a peaceful, secure and progressive business regulatory environment.
• Industrial development will lead to massive creation of jobs benefitting local youth.
• Industrialization shall be inclusive and will facilitate social equality.
• Benefits of industrialization should reach marginal and socially disadvantaged sections of the State.
• Environment will be protected and any potential impacts shall be mitigated.
Objectives
• Making existing industries more competitive
• Attract new international and national investments in industrial sector.
• Focus on the core manufacturing sectors, for creation of employment for urban and rural youth.
• Production of high quality goods at the most competitive prices.
• Establish “ Make in Telangana – Make in India” as a brand with high global reorganization.
• Zero graft and Zero tolerance to corruption
• Adopt transparent decision- making.
• Minimum Inspection – Maximum Facilitation
Effective Industrial Clearances Mechanism
• Industrial Policy is aimed to create an ecosystem in which the ease of doing business in the state matches and even exceeds the best global standards.
• Offering a hassle-free system is considered to be of the highest priority by the industrialists, and accordingly the policy will implement a very effective industrial clearance system that will go beyond the traditional single window system.
• This system, called the Telangana State Industrial Project Approval and Self-certification System (TS-iPASS), has been strengthened by way of legislation.
• A Right to Single Window Clearance, on the lines of the Right to Information, has been bestowed for all applicants.
• Penal action will be imposed on the concerned
• This system will function at three levels—one for Mega Projects, one for other Large Industries, and one for SMEs.
• The Government has brought out a comprehensive legislation enshrining the above stated principles for according permissions and clearances for both Mega Projects as well as industrial applications in other categories.
Thrust Areas AREAS And Core SECTORS
• Detailed studies has been conducted and consulted experts to identify the competitive advantages the State can have, given its geographical location, available resources and skill-base, raw material availability, existing manufacturing practices, and expertise.
• Accordingly, the Telangana State Government recognizes the following 14 sectors as thrust areas. However, other sectors are equally welcome.
Classification of Projects
• The classification of projects into large, medium, small and micro sectors will be based on the Government of India MSME Ministry definitions as amended from time to time.
• The definition of a mega project is a Telangana State determined one. The Government of India has proposed to raise the investment limits under each category and the classification for now is as follows:
Mega Projects
• Those having investment of above Rs.200 crores in plant and machinery or providing employment to more than 1000 persons.
Other Large Projects
• Those having investment between Rs.10 and Rs.200 crores in plant and machinery.
Medium Industries
• Those having investment between Rs.5 and Rs.10 crores in plant and machinery.
Micro Enterprises
• Those having investment of less than Rs.25 lakhs in plant and machinery.
Small Industries
• Those having investment between Rs.25 lakhs to Rs.5 crores in plant and machinery.
Special focus on SMEs/Micro Industries
• The SMEs and Micro-industries are expected to play a significant role in the new State of Telangana, both in terms of value addition and also in terms of creating employment opportunities.
• The new Telangana State Industrial Policy has made special provisions for the SME and Micro sectors as follows:
• Adequate number of smaller plots in Industrial parks for SMEs; developed sheds for Micro-units.
• Special fund for addressing Incipient Sickness.
• Special fund for IP Registrations Assistance.
• Special fund for Anti-Pirating Assistance.
• Special fund for Technology Transfer and modernization to MSME sector.
• Reimbursement of land conversion charges for units in own land, subject to an upper limit.
• Marketing assistance to participate in national and international trade shows and buyer-seller meets.
• Consultant panel to respond to MSME entrepreneur needs.
• Separate State Level Bankers Committee (SLBC) for industries, particularly SMEs.
• Decentralized procedure for issue of licences and permissions to Micro enterprises at the level of Industrial Promotion Officers (IPOs)
Ancillary/Vendor Development
• Within each of the core sectors, Telangana State is interested in the promotion of the ecosystem covering the entire value chain.
• The primary suppliers form an important component of the value chain, and provide the raw material or the component parts to the anchor manufacturing industry, and also provide basic inputs to the service industry.
• The Telangana State has planned each Industrial park in such a way that along with anchor units, enough plots are available for setting up Suppliers/Vendors Park.
• Since the ancillary units are usually in the SME category, these plots will be smaller in size. Mega projects will have to compulsorily set up a Suppliers/Vendors park to encourage growth of local ancillaries.
Preventing Incipient Sickness Among SMEs
• State intends to create a corpus fund jointly with the industries and their associations which will act as a safety net for SMEs that face any crisis and run the risk of imminent sickness.
• Telangana State will also work closely with the RBI constituted State Level Inter-Institutional Committee (SLIIC) to coordinate revival plans of sick and incipient SMEs.
Special Assistance To Women Entrepreneurs
• Like SC/ST entrepreneurs, the number of existing women-owned industrial enterprises is meagre.
• The Telangana State encourages women entrepreneurs in a big way.
• Each of the 9 districts of the state (excluding Hyderabad) will have one or more industrial parks exclusively for women.
• Organizations working for women entrepreneurs like COWE, ALEAP and FICCI-FLO are invited to partner with the government to identify and train women entrepreneurs, get their project proposals developed, link them to financial institutions and handhold and monitor the progress of their projects.
• Among women, the government would facilitate a higher number of entrepreneurs to emerge from socially deprived categories like SCs, STs, BCs and Minorities.
Special Support For SC/ST Entrepreneurs
• This program is implemented under the banner of TSPRIDE—Telangana State Program for Rapid Incubation of Dalit Entrepreneurs and some of these initiatives under T-PRIDE are as follows:
• A special direct funding program for financing SC/ST entrepreneurs will be worked out to utilize the money available under the respective Sub-Plans.
• Payment of Margin Money on behalf of the SC/ST entrepreneurs by the government.
• Preferential allotment of plots in Industrial Parks.
• Supplier diversity opportunities in large industries.
• State departmental procurement policy in tune with GOI SME procurement policy (20%).
• Intensive Entrepreneur and Skill Development programmes.
• Subsidy eligibility if funded by CRISIL Rated NBFCs.
• No negative list.
• Interest subsidy for service sector units (except transport sector).
• State supported CGTMSE-type scheme for SC/ST entrepreneurs.
• Organizations like the Dalit India Chamber of ommerce and Industry (DICCI) will be involved in planning, implementing and monitoring special programmes for the SCs/STs.
• Representation in all district and state level committees
* Stay tuned for continuation of the Industrial frame work for Bangaru Telangana Tommorrow.
G.Rajendra Kumar
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