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Government of Gujarat has announced an industrial policy in 2003. What are the important features that differentiate this policy from the policies announced earlier?
Ans.
The Government of Gujarat has announced its New Industrial Policy in September 2003, taking a holistic view of all the facets concerning the future course of industrialization in the State. Through the implementation of the policy, it is aimed to create a conducive business-friendly environment captivating enough for a discerning investor of the present time, thereby enabling Gujarat to emerge as the most competitive destination for investment in the 21 st century.
The important features that differentiate the policy from the erstwhile policies include the following initiatives:
Creating and sustaining a Global Brand Image for Gujarat and its products
Information and facilitation considered to be the key for attracting investment.
Good governance
Labour reforms to facilitate industrial investment to generate employment and ensuring productivity.
Upgradation of Industrial and Urban Infrastructure
Power reforms
Rationalisation of taxation regime
Port led development and setting up of SEZs
Focusing on strength of Gujarat – Manufacturing
Concerted efforts towards innovation, technology upgradation and value-addition
Development of service sector – around strong manufacturing base
Export competitiveness
Consultative approach for policy initiatives (Phase I) and sector-specific strategy approach (Phase II).
By far this is considered to be the best policy announced by any Government in India, as the policy addresses basic issues relating to the process of industrialisation taking into account the current developments.
The Government of Gujarat has also announced its mineral policy in 2003. How does this policy facilitate attracting investment in this sector?
Ans.
In order to undertake profitable mining of the minerals occurring in the state and to process them for commercial applications, the Government of Gujarat for the first time has announced Mineral Policy in September 2003. The Government of Gujarat has envisaged specific policy initiatives for industrial minerals occurring in the state to attract investment in the fields of mineral exploration, exploitation, and mineral-based industries. It is intended to create competitive environment to speed up industrial development in mineral potential area by enhancement of Human Resource capabilities, improvement in infrastructure & adopting modern technology. The approach is to make progress by increasing mineral production and export of value added material through local and global competitiveness. Efforts to develop with special attention to minerals which are only available in the Gujarat as compared to other states in the country and mineral occurring in few states & having high quality. Creating local employment through mineral exploitation while maintaining mine safety & striking ecological equilibrium is also an additional addendum of this policy.
Government of India is offering exemption in the payment of excise duty to the new projects having been set up post earthquake in Kutch. What are the details of the scheme?
Ans.
Yes. The Government of India has announced a scheme to offer exemption in the payment of excise duty to all the new industries barring a few falling in the negative list, having been set up in the district of Kutch between 31/7/2001 and 31/12/2004, for a period of five years. In case of the investment in plant and machinery below Rs.20 crore on the date of commencement of commercial production, the unit will be entitled to receive the excise exemption for the first clearance on the excisable goods having value twice the investment in plant and machinery in each year. In the case when the investment value in plant and machinery is Rs.20 crore or more, no such monetary limit applies. In other words, for such a unit, the value of excisable goods on which excise exemption is available, is unlimited.
Government of Gujarat is also offering sales tax incentives to the new industries coming up in the district of Kutch. What are the benefits available under the scheme?
Ans.
Yes. The State Govt. vide a resolution No.INC-10200-903-I dated 9/11/2001 had announced a scheme of sales tax incentives to be offered to new units coming up in the district of Kutch. Under the scheme, new units set up between 31/7/2001 and 31/10/2004 are offered sales tax incentives in the form of either sales tax exemption or deferment. Alternatively, such new units as on 31 st October 2004 have taken certain prescribed effective steps will be treated as pipeline cases provided they undertake to go into production on or before 31 st October 2005.
All such new units set up as above will be entitled to received ST exemption/deferment upto 100% of the cost of the investment made in eligible fixed capital assets for a period of 5 years upto an investment of Rs.10 crore, for a period of seven years upto an investment of Rs.50 crore and 10 years in the case of investment exceeding Rs.50 crore.
While every care is exercised in compiling the information in terms of its authenticity, iNDEXTb is not responsible for any error of judgement or interpretation of relevant policy provisions. The version or the interpretation of the concerned department/organisation be treated as final.
