A cabinet meeting chaired by Chief Minister Shri Shivraj Singh Chouhan here today endorsed new Industrial Promotion Policy-2014 aiming at attracting maximum investments to the state.
Under the policy, an online Investors Monitoring & Facilitation System will be put in place to make available facilities and permissions within prescribed time-limit to investors through single window system. MP TRIFAC will serve as nodal agency for this.
Process to get assistance pertaining to VAT and Central Sales Tax has been simplified. In view of delay in reimbursement of VAT to units at present, 75 percent assistance will be given immediately on payable amount on confirmation of deposit of total tax amount annually. Remaining 25 amount will be given by Commercial Taxes Department after fixation of tax.
Under the policy, resources of government polytechnics and ITIs will be used for promoting skill development. Side by side mega ITIs will be established in major industrial areas.
The new policy has increased the upper limit of loan subsidy for MSME sector from Rs. 20 lakh to Rs. 30 lakh. A state-level investment empowered committee headed by the Chief Secretary will be constituted to provide assistance to investment projects. District-level committees for MSMEs will be made more effective. Minimum 20 percent land in new industrial areas will be earmarked for MSME sector.
Maximum assistance of Rs. 25 lakh will be given for establishment of waste management system to promote green industrialisation. Vender Development Programme will be made more effective to promote establishment of auxiliary units. As per the new policy, assistance will be given through deferment in government outstanding dues (except taxes) to financial crisis-ridden investment projects involving over Rs. 500 crore capital investment. Maximum Rs. 3 crore will be reimbursed against expenditure made on infrastructure development on undeveloped land outside industrial areas in the context of major and medium industries. Non-polluting micro and small industries will be exempted from obtaining NOC from Pollution Control Board. Minimum space will be reduced from 100 acres to 50 acres for establishment of private industrial areas.
The new policy provides that maximum 20 percent of the total land in new/expanded industrial areas of 100 acres or more will be reserved for residential/commercial activities. Number of ineligible in-operation industries will be reduced from 52 to 19 by rationalisation of their list so that maximum number of industries can be provided assistance. Equal facilities/assistance will be given to industries in entire state by abolishing classification of districts in respect of industries.
State Tourism Policy amended
For overall development of tourism in the state and to attract more investment from private sector, amendments have been made in Madhya Pradesh State Tourism Policy.
According to the amendments, all applications for investment in tourism sector will be disposed of through single window system. Tourism projects have been enlisted in the policy. Exemption from Luxury Tax liability on rooms available in hotels has been increased from Rs. 2000 to Rs. 3000. Subsidy expenditure on capital expenditure in heritage hotels has been increased from 25 percent or Rs. 1.50 crore to 35 percent or Rs. 1.50 crore.
For obtaining budget hotel construction grant, condition of 50 rooms has been reduced to 25 rooms. Condition to fix maximum rent as Rs. 2000 has been abolished. Apart from relaxation in provisions of construction of convention centre of land bank of Tourism Department, now construction of convention centre on private land will also be encouraged.
Land disposal policy
The cabinet also endorsed amendments in the Land Disposal Policy 2008 for disposal through auction the government lands allotted to Tourism Department. As per it, disposal of government lands allotted to Tourism Department through auction has been exempted from “Niji Poonji Nivesh Ke Mamlon Mein Sarkari Dakhal Rahit Awantan Niti” issued by Revenue Department.
On demand by investors for tourism projects, such land, which is a part of land bank mentioned in Revenue Department’s policy of 2013 and has not been transferred to Tourism Department, will be disposed of under Revenue Department’s policy of 2013.
Expansion of air services
Apart from inter-connecting various cities in the state by air services, for connecting neighbouring states’ major cities and tourist destinations with the state, the policy has been amended.
As per the policy, private operators providing air connectivity to the state will be identified through open tender. A private operator will operate minimum 9 seater aircraft. He will be free to prescribe fare in every sector. Subsidy will be payable per month to private air service provider on flights from one city to another within the state and from one city of the state to another city of other state. State government will reimburse VAT on aviation fuel till expiry of MoU signed with private operator on the condition that aviation fuel will be purchased from the state.
Validity of agreement with private operator will be 3 years from the date of starting operations. The agreement can be extended for 2 years with permission of Finance Department if services are satisfactory. The state government will be able to permit any other operator to operate air service in a sector with the condition that it is not more lucrative than agreement signed with selected operators as above.
It is noteworthy that the policy was framed in year 2010 for air connectivity between state’s major cities. After inviting open tender, permission was given to Messrs Venura Airconnect for next 3 years from September 2011 for air taxi operations. Since then till August 2014, it has made available its services in Bhopal, Indore, Jabalpur, Rewa, Satna, Gwalior and Khajuraho with over 7000 flights transporting about 20 thousand passengers.
Changes in Mukhyamantri Yuva Engineer-Contractor Yojana
The cabinet endorsed changes in Mukhyamantri Yuva Engineer-Contractor Yojana framed for turning young engineers into contractors in the state. As per it, trained engineers will be given unique identity in registration so that there is no difficulty in identifying them in future. Training period has been reduced from 6 to 3 months including 2 months’ field training and one month’s training in official procedures and academics. Under the scheme, trained engineers will be registered under “C” category. Registration fee for “C” category has been decreased from Rs. 10 thousand to Rs. 2000 and security deposit from Rs. 2 lakh to Rs. 25 thousand.
Every trained contractor under the scheme will be given 50 percent concession in earnest money deposit/bid for first 3 years. This concession will not be given if contractor leaves incomplete any 2 work orders.
State Spatial Policy endorsed
The cabinet endorsed State Spatial Policy for establishment of state spatial data infrastructure. It is being established for collecting information and data through geographical information system, its management and analysis and taking policy decisions on its basis.
The policy also contains provisions for constitution of State Spatial Infrastructure Committee, fixation of nodal agency and giving to the nodal agency the spatial data available with all government agencies.
Constitution of Project Directorate
The cabinet decided to constitute Madhya Pradesh State Project Directorate. Through it, projects sanctioned by RUSA, World Bank and other funding agencies will be implemented. For this one post each of project director, additional project director, deputy project director, finance controllers and superintending engineers, 2 posts of educationist, one post of sub-divisional officers, and 5 posts each of class III and IV employees were sanctioned. Appointments on class III and IV posts will be made through contract/outsourcing and remaining through deputations.
The cabinet sanctioned construction of 2-lane Guna-Aron-Sironj Road under BOT (toll + annuity). Cost of the 86.76 km long road to be constructed by Madhya Pradesh Road Development Corporation is Rs. 199.12 crore.
The cabinet extended the term of Sardar Sarovar Project Fake Sale Letters and Rehabilitation Site Irregularities Enquiry Commission upto October 8, 2015.
The cabinet decided to upgrade 3 posts of special public prosecution officer/district prosecution officer sanctioned for Special Police Establishment Lokayukta Organisation’s divisional officers at Jabalpur, Indore and Gwalior to posts of deputy director prosecution.
The cabinet accorded administrative sanction of Rs. 3,448 crore for Kundalia major irrigation project in Rajgarh district. The project is proposed over Kali Sindh River between village Sirpoi of Jeerapur tahsil and village Gothda of Nalkhera development block of Agar district. The project will irrigate 421 villages in Khilchipur, Jeerapur and Sarangpur tashils of Rajgarh district and Susner and Nalkhera tahsils of Agar district. It will irrigate one lakh 12 thousand 400 hectares in Rabi and 38 thousand hectares in Kharif.
Surrendering 42 class IV posts of State Tourism Development Corporation, the cabinet accorded sanction to create 20 additional posts.