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Kerela's industrial policy targets 9 pc growth on Rs 32b additional investment

The Marxist-led Left Democratic Front government in Kerala today announced its new industrial policy seeking to achieve a nine per cent annual industrial growth through an additional Rs 32.50 billion investment during the rest of its current term.

"The policy is so designed as to ensure generation of 350,000 employment opportunities in the next 30 months," Industries Minister Suseela Gopalan said.

She said a high-level committee headed by the chief minister would be constituted to consider and clear all projects with investment of more than Rs 500 million, where inter- departmental issues were to be sorted out. The committee would have the ministers of industries, power, finance and labour and chief secretary and other concerned officials, as members.

All 100 per cent export oriented units and tiny, small, medium or large units in sectors like information technology, tourism, agro-based business, including food processing, readymade garments, ayurvedic medicines, mining, marine products, light engineering, biotechnology and rubber-based industries have been identified as the thrust sectors.

The policy has several specific functional strategies for the accelerated growth of the thrust sector industries. Specialised industrial parks with state-of-the-art infrastructure would be developed for each of the thrust sector segments.

It envisages a promotional package for the thrust sectors encompassing specific incentives, support for research and technology development, improved information sharing and assistance in marketing and export promotion.

According to the policy, all new units, tiny, small, medium or large, included under thrust sectors, would be eligible for investment subsidy at the rate of 15 per cent of fixed capital investment subject to a ceiling of Rs 1.5 million, or as notified in the specific incentives announced for the sector, from time to time.

The investment subsidy for information technology units would be as per the IT policy announced earlier. All thrust sector units set up in the backward Idukki and Wayanad districts would enjoy an investment subsidy of 25 per cent of fixed capital investment subject to a maximum of Rs 2.5 million.

All new units, except those in the "negative list", as notified from time to time, would be provided investment subsidy at the rate of 10 per cent of fixed capital investment subject to a ceiling of Rs 500,000. The ceiling would be Rs 1 million in respect of all units set up in Idukki, Wayanad and notified industrial areas like industrial growth centres and industrial parks.

UNI

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