Govt comes out with ambitious proposal to set up IIAs to carry out all-round industrial development
With the concept of Special Economic Zones (SEZs) failing totake off for multiple problems, the Maharashtra government has now opened up anexit window with an ambitious proposal to set up Integrated Industrial Areas (IIAs) – to carry out all-roundindustrial development and promote walk-to-work concept.
This forms part of the new industrial policy, which comesinto force from April 1, 2013 and run till March 31, 2018, a period of fiveyears.
“We want that there should be proper development. With SEZsthere have been issues like minimum alternate tax and dividend distributiontax,” Chief Minister Prithviraj Chavan said.
“If a developer wants to go for SEZs, they are welcome....ifone wants to get out of it, we are offering them a window in form of IIAs,” hesaid, adding that while in SEZs – the plan was to have 50 percent industrialset up and 50 percent others.
“In IIAs, we want the industrial component to be 60 percent,10 percent would have sectors like banking system and the rest 30 percent softinfrastructure like housing facilities, schools, hospitals, recreationfacilities and others....we want the concept of walk to work,” he said andpointed out that in case of Maharashtra Industrial Development Corporation(MIDC) areas it was 80 percent and 20 percent, respectively.
Chavan said IIAs would be similar to industrial townshipslike Bhilai, Rourkela and Jamshedpur.
Chavan and Rane together strongly defended the criticism of40 percent land use for non-industrial activities in IIAs by a section of NCPministers. A senior NCP minister derided the industrial policy as a “housingpolicy”. The NCP ministers alleged that the demarcation of 40 percent land fornon-industrial activities could be exploited by certain big developers tocreate housing townships for open market under the garb of industrialtownships. BJP’s Leader of the Opposition Eknath Khadse also slammed the policydescribing it as “favourable to builders”
Dismissing these allegations as “irresponsible”, Chavan said“People stay in Mumbai and work in Thane or they stay away from industrialareas....we are enhancing the quality of life by promoting the concept ofwalk-to-work.....people should stay near their workplace...and hence in theconcept of Integrated Industrial Areas (IIAs), we have kept 40 percent fornon-industrial purpose, as against the 50:50 ratio in the Special EconomicZones (SEZs).”
The policy document released at the news conference clearlystates: “However, development permission for commercial, residential, andnon-residential activities shall be given only after the development ofinfrastructure facilities on the area earmarked for industrial development andafter disposal of 1/3rd area kept for industrial development.”
Explaining other features of the policy, Chavan said thepolicy would focus on less developed regions to bring them on par withmainstream industrial areas, offer customized packages of incentives for megaand ultra mega projects. Maharashtra’s industrial growth has been powered by354 mega projects which brought in a total investment of Rs 2.80 lakh crore.
