TS govt unveils new industrial policy framework

TS govt unveils new industrial policy framework - Sakshi Post

Hyderabad: Nearly six months after Telangana was born, the state government on Thursday unveiled a new industrial policy framework promising rationalisation of taxes and offering incentives, eyeing up to 5 per cent higher manufacturing sector growth than national average.

Innovate in Telangana, Invest in Telangana, Incorporate in Telangana would be the motto of industrialisation in the state, the government said.

The vision for the new state's industrialisation is 'Research to Innovation; Innovation to Industry; Industry to Prosperity'. It is strongly believed that with the new industrial policy in place, a growth rate of 4-5 per cent greater than the national growth rate in the manufacturing sector can be achieved, the policy document said.

To supplement Research and Innovation Circle of Hyderabad (RICH) and encourage innovation and incubation, the government would create a Research to Market Fund (RMF) to encourage entrepreneurial activity. It would provide a matching contribution of up to Rs 100 crore to RMF for amounts contributed by private venture capitalists and angel investors. The state government would remove and revise archaic and outdated laws that adversely impact industry and industrialisation.

The government noted that distortions in tax structure lead to evasion of taxes and clandestine transport of industrial inputs and outputs to neighbouring states, which may have advantageous tax rates. To address this problem, inter-state tax rationalisation on industrial inputs and outputs with states like Karnataka, Maharashtra, Gujarat and Tamil Nadu will be brought within a short span of time, the policy said. There would be enhanced incentive packages for Scheduled Castes, Scheduled Tribes, physically handicapped and women entrepreneurs.

Mega projects with an investment of over Rs 200 crore in plant and machinery or employment above 1,000 people will receive tailor-made incentives in addition to standard large- category industry incentives, it was stated. The government would consider providing incentives to entrepreneurs in areas like stamp duty reimbursement, land cost rebate, land conversion cost and power cost reimbursement, under its T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) incentive scheme.

'The cornerstone of the policy would be zero graft and zero tolerance to corruption, and the decision-making in all Departments in Telangana will be transparent. Department heads will be held responsible for all acts of omission and commission by staff under their jurisdiction, it said.

An online and help-desk grievance redressal system would be put in place where entrepreneurs will be encouraged to report instances of corruption or any delay in approvals. Timely and strict disciplinary action would be taken against those employees who violate the parameters of the industrial policy framework.

The policy will make special provisions for SME and micro sectors, including making available adequate number of smaller plots in industrial parks for them. Unveiling the policy in the Assembly, Chief Minister K Chandrasekhar Rao said the new framework intended to provide a business regulatory environment where doing business would be as easy as shaking hands.

Innovation and technology will drive the industries of Telangana, he added. The thrust areas identified by the Government include life sciences (including bulk drugs and formulations), IT hardware, precision engineering (including aerospace, aviation and defence), food processing, automobiles, textiles and apparel, plastics, gems and jewellery.

Simultaneously, a Bill was also introduced in the Assembly to enact the Telangana State Industrial Project Approval and Self-certification System (TS-iPASS) that would be a single window without grills for clearing all investment proposals. The Bill was passed late in the evening after certain amendments proposed by the Opposition parties were rejected by the House.

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