Wednesday, Sep 17, 2003
Wednesday, Sep 17, 2003 |
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By R. Gopalakrishnan
The long-promised policy, released by the Chief Minister, Jayalalithaa, at the Secretariat here today, has restructured and broadbased the existing capital investment subsidies in such a manner as to promote location of units in industrial parks. The present subsidies linked to the backward area/most backward area status and special subsidies for selected categories of industries find no mention in the policy, which in its preamble, talks of "building on" Tamil Nadu's strengths in specific sectors. The Government will "at its discretion" offer specific packages to single investments exceeding Rs. 300 crores. The existing structure of capital subsidies for "mega" projects in the three categories of investments, Rs. 50-100 crores, 100-200 crores and above 200 crores, has been retained, with the addition of exemption from electricity tax, respectively, for the first three/four/five years of commercial production. Location in a government-promoted industrial park will entitle new units to 150 per cent of the above standard capital subsidy. Foreign direct investment will be promoted "in a new manufacturing capacity". Other subsidies include a critical infrastructure subsidy of 25 per cent of the capital cost or Rs. 25 lakhs (whichever is lower) for effluent treatment plants/waste disposal sites and a one-time reimbursement of 50 per cent of the cost of patent registration subject to a ceiling of Rs. 1 lakh to production units. For private industrial parks, a back-ended subsidy claim of 10 per cent of the investment, up to Rs. 1 crore, will be entertained, subject to the location of a minimum of 50 units and provision of employment to at least 2,500 persons in these parks. Stamp duty inclusive of surcharge at six per cent will be levied for land lease/purchase documents in the case of units in all industrial parks. Stamp duty and registration charges will be at the actual cost indicated by the agency.
`Reforms with human face'
In respect of labour laws, the document says, "in today's competitive environment, there is need to review labour laws like those pertaining to layoff, retrenchment, engagement of contract labour and flexibility of work". The Government would bear in mind the recommendations of the Second National Commission on Labour and "take steps to amend the labour laws, where necessary, with the concurrence of the Government of India". The aim would be to "implement reforms with a human face, bearing in mind the need to provide a harmonious, competitive working environment where productivity is rewarded and adequate flexibility is available to use the income-earning skills developed especially by women". The PSUs will "focus mainly on promotional work". They "will exit from manufacturing through disinvestment decisions. Privatisation of manufacturing cooperative units will be undertaken". A law to provide for single-window approvals, one-time settlement of overdues by the Tamil Nadu Industrial Investment Corporation and the State Industries Promotion Corporation of Tamil Nadu and a centre to assist small and medium enterprises are among other proposals of the policy.
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