Telangana's New Industrial Policy Aims To Increase Output | SupportBiz


Telangana's New Industrial Policy Aims To Increase Output

Tags: Telangana
In order to encourage innovation and incubation, the government would create a Research to Market Fund (RMF) to encourage entrepreneurial activity.

Hyderabad: The newly built state Telengana has unveiled a new industrial policy framework promising reduction of taxes and offering reforms, expecting higher manufacturing output than the national output.

"Innovate in Telangana, Invest in Telangana, Incorporate in Telangana" would be the motto of industrialisation in the state, the government said. The vision for the new state's industrialisation is 'Research to Innovation; Innovation to Industry; Industry to Prosperity'.

"It is strongly believed that with the new industrial policy in place, a growth rate of 4-5 per cent greater than the national growth rate in the manufacturing sector can be achieved," the policy document said.

"To address this problem, inter-state tax rationalisation on industrial inputs and outputs with states like Karnataka, Maharashtra, Gujarat and Tamil Nadu will be brought within a short span of time," the policy said.

There would be enhanced incentive packages for Scheduled Castes, Scheduled Tribes, physically handicapped and women entrepreneurs. Mega projects with an investment of over Rs 200 crore in plant and machinery or employment above 1,000 people will receive tailor-made incentives in addition to standard large- category industry incentives, it stated.

The government would consider providing reforms to entrepreneurs in areas like stamp duty reimbursement, land cost rebate, land conversion cost and power cost reimbursement, under its T-IDEA (Telangana State Industrial Development and Entrepreneur Advancement) incentive scheme.

"The cornerstone of the policy would be zero graft and zero tolerance to corruption, and the decision-making in all Departments in Telangana will be transparent. Department heads will be held responsible for all acts of omission and commission by staff under their jurisdiction," it said.

The policy will make special provisions for SME and micro sectors, including making available adequate number of smaller plots in industrial parks for them. Unveiling the policy in the Assembly, Chief Minister K Chandrasekhar Rao said the new framework intended to provide a business regulatory environment "where doing business would be as easy as shaking hands".

"Innovation and technology will drive the industries of Telangana," he added. The thrust areas identified by the Government include life sciences (including bulk drugs and formulations), IT hardware, precision engineering (including aerospace, aviation and defence), food processing, automobiles, textiles and apparel, plastics, gems and jewellery.