Prior to GIS MP Cabinet endorses IPP; Tourism Policy amended

By Pervez Bari,

Senior Correspondent, Bhopal

With the aim of attracting maximum investments to Madhya Pradesh the ruling Bharatiya Janata Party, (BJP), state government has approved a new Industrial Promotion Policy-2014, the tourism policy and a policy for air taxi operations.

A cabinet meeting chaired by Madhya Pradesh Chief Minister Shivraj Singh Chouhan endorsed all these initiatives here on Tuesday. The IPP has been cleared in the run up to the Global Investors’ Summit, (GIS), scheduled in Indore from October 8-10. The policy envisages an online investor monitoring and facilitation system as part of the single window system of clearances and amenities.

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. The Madhya Pradesh State Trade & Investment Facilitation Corporation, (MPTRIFAC), 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.

Tourism policy amended

The new Tourism policy has increased the limit for grant in heritage hotels from 25 to 35% or Rs.1.50 crore. A budget hotel will now need to have 25 rooms, against the current requirement of 50, while the maximum tariff clause of Rs.2,000 has also been waived off. The revenue department’s policy on auction of government land will not apply to the government land meant for auction in tourism sector.

Policy for air taxi operations

Open tenders would be invited under the policy for selecting a new air taxi operator. The operator would have to ply a minimum nine-seater aircraft and would be free to fix the fares. The state government would pay subsidy on a monthly basis for flights within the state and outside too and forego VAT on aviation turbine fuel.

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 20,000 passengers.


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