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News Clippings

Industry Promotion Policy 2004 and Action Plan Announced

Industrial Promotion Policy 2010 And Action Plan

        With a view to achieving double digit economic growth in Madhya Pradesh for making the state prosperous, the state cabinet has approved new Industry Promotion Policy 2004 and Action Plan on Sunday. The Industry Promotion Policy would be effective for five years from April 1, 2004.

       The principle objectives of the new policy are to create industry-friendly administration, to maximize employment opportunities, to tackle industrial sickness, rationalize rates of commercial taxes and enlist participation of private sector in the efforts of industrialization. The strategy envisaged under the new policy focuses on

  • Establishment of Madhya Pradesh Trade and Investment Facilitation Corporation.

  • Enacting an Industrial Facilitation Act and to change rules of business with a view to making single window system effective, strong and result oriented.

  • Developing infrastructure for identified clusters.

  • Reviving closed down sick industrial units by granting special packages.

Under the action plan prepared for implementation of the Industry Promotion Policy following institutional arrangements would be made.

1. Constitution of Industry Advisory Council : - Under the Chief Minister an Industry Advisory Council would be constituted for giving suggestions and advices for expeditious industrialization of the state. The Minister for Commerce and Industry would be the vice-chairperson of the Council, which would include Ministers for Energy, Finance, Commercial Taxes and Housing and Environment. Representatives of leading industrial houses of the state and Chief Secretary would also be its members. Renowned economists, industrialists and other experts of the country would be special invitees in the advisory council. The Principle Secretary Commerce and Industry would be the member secretary and Principle Secretary to Chief Minister would be member of the council.

2. Creation of Madhya Pradesh Trade and Investment Facilitation Corporation: - In order to properly implement effective single window system and to encourage investments, the Madhya Pradesh Trade and Investment Facilitation Corporation would be constituted. This corporation would be created from Madhya Pradesh Export Corporation. The Corporation would function independently as a Secretariat for implementation of single window system.

3. Formation of empowered committees for single window clearances :- By bringing about amendments in the rules of business and through enactment of Industrial Facilitation Act, empowered committees would be created for granting single window clearances to industrial and other investment projects. These committees would also be empowered to encourage time-bound investments in their respective areas of jurisdiction by taking appropriate decisions.

The empowered committees would be at three levels :-

  • District level investment promotion empowered committee- This committee under the District Collector would grant clearances for projects of up to Rs. 3 crores.

  • State level investment promotion empowered committee- This committee would be formed under the Minister for Commerce and Industry and would grant clearances and give directions for investment projects involving investments in the range of Rs 3 crores to Rs 25 crores.

  • Apex investment promotion empowered committee- This Committee would be headed by the Chief Minister and would grant clearances to investment projects of over Rs 25 crores. The committee would also lay down strategy for attracting investments and give other appropriate directions.

4. For addressing the problem of financial constraints in the development of industrial infrastructure, an Industrial Infrastructure Development Fund would be created, for which Rs 10 crores would be provided every year for the next five years. This amount would be used as revolving money for infrastructure development.

5. Double system of taxation would be abolished in the industrial areas and the industrial development centers. Public participation and autonomous committees would be responsible for maintenance and upkeep of industrial areas and industrial development centers. Relevant amendments would be made in Madhya Pradesh Municipal Act 1961, Madhya Pradesh Municipal Act 1956 and Panchayat Act 1993 for transferring powers and responsibilities pertaining to property tax, duty on transfer of properties, sewage, building control public services etc. to these committees.

6. For competitive advantages, industries and ancillaries would be developed in clusters keeping in view the availability of raw materials, skilled labour and market potential. Following hubs of the clusters have been identified :-


Pharmaceutical, textile, food processing, information technology, auto-components


Engineering, Fabrication, Biotechnology, Herbal Products, Information Technology, Food Processing.


Garment, Mineral, Forest and Herbal based industries, Food Processing.


Electronics, Information Technology, Fast Moving Consumer Goods and Commodities, Light Engineering, Food Processing


Refractories, Lime Stone and Forest based industries.

7. The State Government would give priority for completion of initial development works at following industrial parks


Apparel Park, Gem and Jewelry Park, Software Technology Park and Herbal Park


Life Sciences Institute


Apparel Park and Stone Park


Herbal Park


Granite Park


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