With a view to becoming an Asian leader in terms of industrial growth and attracting quality investment, the Gujarat government announced its industrial policy for 2009 on Monday. Among other things, the policy lays emphasis on small and medium enterprises, Special Investment Regions and mega as well as innovative projects.
Apart from textiles, gems and jewellery, engineering, chemicals and petrochemicals, which are the sectors where the state has proved its strength, the new policy will focus on potential sectors such as agri business, fisheries and informal sector. Emerging sectors such as IT/ ITEs, nano technology, biotechnology, non-conventional energy resources have been given priority in the policy.
Terming the SME sectors as the backbone of industries in Gujarat, the policy offers interest subsidy, venture capital assistance and quality certification to the sector to make it more competitive. As part of the policy, a rehabilitation package will be announced, including revival or allowance of exit for sick units. Support will also be given for market development, including initiatives for the creation of the 'Made in Gujarat' brand by the SMEs.
The new policy also provides for support to develop ancillary and auxiliary industries for value addition. "The state will continue to accord priority towards cluster development of SMEs in the entire state," said Saurabh Patel, minister of state for industries and energy and a Gujarat government spokesperson, while announcing the new policy in Ahmedabad.
The newly unveiled policy also seeks to encourage the setting up of mega projects in the state. Projects having an investment of more than Rs 1,000 crore (Rs 10 billion) and a capacity to provide employment to 2,000 people will be treated as mega projects.
Merit-based assistance packages will be given to such projects in identified sectors, which include auto components, semiconductor fabrication, nano technology, ship building and repairing, aircraft maintenance, repair and overhaul.
Special investment regions are also given a special focus under the new industrial policy. A 54,000 hectare SIR has already been planned in the Dholera area in the state.
"The Gujarat government is also considering the formulation of a Special Investment Region Act to facilitate growth of such regions in the state," said M Sahu, vice-chairman and managing director, Gujarat Industrial Development Corporation.
