1.
PREAMBLE
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Rajasthan has been in the forefront of Economic Reforms. It was the first
State in the country to adopt the International Competitive bidding route
for setting up power projects. It was also the first in the country to
announce a State Road Policy, facilitating the entry of private enterprise
in the Roads sector. A new, simplified Sales Tax Act has been introduced
by the State Government. The Mineral, Marble and Granite policies of 1994
have promoted scientific exploration and exploitation of the State's rich
minerals. The Industrial Policy 1994 has brought about a significant
change in its investment climate. The Rural Non Farm Policy of 1995 - the
first of its kind in the country - has helped focus efforts on growth and
employment through rural industrialisation.
- With a series of policy initiatives taken in the last few years, most roadblocks to the private sector's entry in Infrastructure have been removed. The State is poised for significant developments in the Power Sector. The prospects for development of Solar energy are promising. There are indications of a significant oil and natural gas reserve, which could change the face of Western Rajasthan's economy.
- Rajasthan is now among the six fastest growing States of the country. Its Eighth Plan Outlay constituted an increase of 283% over that of the Seventh Plan. During the past five years the average growth rate of investment in the large and medium sector has been 33% and in the SSI sector over 15%. Over the same period, exports from the State have grown at an annual average rate of 53%.
- The experience of implementing the State's 1994 Industrial Policy has also brought to light certain deficiencies and practical problems, which need to be redressed. There are areas like Infrastructure and Human Resource Development which require even greater attention than has been accorded in the past. The New Industrial Policy of the State is thus an exercise to reflect these developments and to launch new initiatives to take advantage of the emerging opportunities.
2. OBJECTIVES
The principal objective of the new Policy is to make Rajasthan the most preferred State for investment in the identified sectors and to ultimately achieve global competitiveness. While governed by this basic goal, the Policy will lay special emphasis on accelarating the overall pace of Industrial growth, increasin employment opportunities, improving productivity, ensuring sustainable development and strengthening the SSI, Tiny and Cottage Industry sector.
3. STRATEGY
- The above objectives will be achieved by adopting a strategy which enables focussed growth. Thus, the new strategy envisages development of clusters offering economies of agglomeration and thrust sectors.
- The task of improving infrastructure would be given the highest priority. The plans for infrastructure development will take into account the resource endowment and the growth potential of each area.
- Special emphasis will be given to the development of Thrust sectors, which have been identified keeping in view their infrastructural requirements, growth potential and the capacity to generate employment.
- Simplification of rules and procedures, timely and smooth delivery of services will receive continued attention. Special efforts will be made for developing Government - Industry partnership in the implementation of the Policy.
- Greater emphasis will be laid on development of human resources for emerging requirements of industry.
- The basic approach of all the initiatives will be to encourage increasingly greater participation of private enterprise in the State's economic growth.
4. INFRASTRUCTURE
The Board of Investment has been reconstituted as the Board of Infrastructure Development and Investment to ensure greater focus on industry-related infrastructure. It will ensure formulation of perspective plans for different regions, inter-sectoral co-ordination and effective monitoring for timely provision of facilities in industrial areas.
Based on the Memorandum of Understanding signed with Infrastructure Leasing and Financial Services Limited (IL&FS) and Housing Development and Finance Corporation (HDFC) a Project Development Corporation (PDCOR) has been set up in the private sector, with equity partcipation by the State Government. The company will offer Investment Banking Reports on commercially profitable projects, tie up finances and offer projects for implementation to prospective investors.
In important industrial areas of the State, establishment of Business Centres in the private sector will be encouraged. Rajasthan State Industrial Development and Investment Corporation Ltd. (RIICO) will provide land and/or buildings for these Centres where facilities like office and conference space, telephone, fax and photo copying facilities etc. would be available to entrepreneurs.
Special Industrial Complexes are being developed in the State by RIICO to meet the requirements of specific industries, paticularly of thrust sectors, at the following locations :
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1. Gems & Jewellery EPIP & Gem Park, Jaipur
2. Hosiery Chopanki, Bhiwadi
3. Auto Ancilliary Ghatal (Bhiwadi) & Sitapura (Jaipur),
4. Ceramics Khara, (Bikaner)
5. Software Technology EPIP, (Jaipur)
6. Electronics & Telecomm. Kukas, (Jaipur)
7. Textiles Bhilwara, Sanganer, Sitapura, Pali, Jodhpur, Balotra
8. Agro Industries IGNP Area
9. Leather Manpur-Macheri
10. Wool Industries Beawar, Bikaner
11. Handicrafts Shilpgram, (Jodhpur and Jaisalmer)
12. Dimensional Stone Kishangarh, Udaipur, Chittorgarh
6.Other Related Aspects
1. Efforts will be made to reduce project implementation time through provision of essential infrastructure facilities like roads, power, street lights and water supply. An industrial area will be declared as developed after these specific facilities have been provided. Service charges will be recovered only with effect from the date of declaration of the industrial area as developed. Missing links in the existing industrial areas would be identified and steps taken to provide the required facilities.
2. Efforts would be made to provide social infrastructure facilities like housing, schools, hospitals/dispensaries, shopping centres etc. in important industrial areas. Some of the industrial areas would be developed as industrial townships.
3. The Industrial Complexes being developed in the National Capital Region of the State would be further strengthened in terms of infrastructure facilities.
4. The entire belt around N.H.8 from Jaipur to Bhiwadi would be taken up for integrated industrial development. A blue print for development of industrial townships in this belt would be prepared keeping in view the increased flow of investments in this region.
7. Development of Integrated Industrial Parks (IIPs) and Industrial Model Towns ( IMTs)
1. Development of Integrated Industrial Parks (IIPs) as joint venture projects with RIICO, or in the private sector will be actively encouraged by undertaking the following measures:
(a) Formulation of schemes for development of IIPs in the private sector on BOT (Build-Operate-Transfer) or BOOM (Build-Own-Operate-Maintain) basis, while dovetailing them with the overall development plans of the region.
(b) Encouraging promotion of IIPs through equity participation by RIICO and assistance from other agencies of the Government.
(c) Devising a policy for allotment of land to private sector on the basis of a transparent mechanism.
(d) Concessions available to industrial units set up in RIICO's industrial areas would also be available to units located in the IIPs and Industrial Parks in the Private Sector
2. Development of industrial areas in the private sector was earlier prohibited within 10 Kms radius of RIICO's industrial areas; this distance has now been reduced to 5 Kms. Rajasthan Industrial Areas Allotment Rules, 1959 have been amended to facilitate the development of industrial areas / estates in the private sector.
8. Land Conversion
Despite efforts made in the past, enterpreneurs have been
facing difficulties in securing conversion of land from agricultural to
industrial. To resolve this problem, provision has been made for automatic
conversion of land upto 5 hectares. On expiry of 30 days from the date of
application for conversion to the appropriate Revenue authority the
conversion shall be deemed to have taken place and the concerned Revenue
Authority/GM, DIC will issue a certificate of deemed conversion. The
concerned Tehsildar/Gram Panchayat shall make necessary entries in the land
records within 7 days.
9. Maintenance Of Industrial Areas
1. Proper upkeep and maintenance of the existing industrial areas will be ensured by RIICO. Wherever possible, Local Bodies, Industries Associations and other organisations will be associated with this activity and on their request areas can be handed over to them for this purpose.
2. Advisory Committees comprising, interalia, industry representatives, will be set up in respect of industrial areas to advise on :-
a) Maintenance and improvement of the existing areas; and
b) Redressal of grievances.
The scope of work of these Advisory Committees has been indicated in Annex - I
10. Settlement Committees
RIICO and RFC have constituted three tier Settlement Committees for resolving disputes pertaining to entrepreneurs. These Committees are fully empowered to decide matters falling within their jurisdiction. This would reduce future litigation and pending Court cases can also be settled by these Committees. The details of constitution and working of these Committees has been given in Annexure - II
11. Power
1. Rajasthan has been recognised as one of the two leading states, which have vigorously pursued Power Sector Reforms. According to the assessment carried out by the Ministry of Power during the year 1996-97, the difference between the Peak Demand and Peak Demand met in Rajasthan was only 5.6% - the lowest among the twenty major States of the country. In addition, in terms of Plant Load Factor the State with a PLF of 75.6% was ranked the second in the country. Substantial private sector investment in power generation is being encouraged.
2. Two units of 250 MW each are expected to be commissioned at Suratgarh Stage-I Project during 1998 and 1999, respectively. In addition, the following major power plants are scheduled to be commissioned in the IX Five Year Plan and early years of X Five Year Plan:-
|
S.No.
|
Projects in Pipeline
|
Capacity
|
| 1. | Dholpur Power Project based on Liquid Fuel. |
700 MW
|
| 2. |
Barsingsar Power Project based on Lignite. |
500 MW
|
| 3. |
Suratgarh Stage-II Power Project based on Coal. |
500 MW
|
| 4. |
Kapurdi & Jalipa Projects based on Lignite . |
1200 MW
|
|
TOTAL
|
2900 MW
|
|
3. Captive power plants will be freely permitted. No permission
from RSEB would be required.
4.State Government has recently announced a Captive Power Plant Policy. The details of the policy shall be issued by the Energy Department shortly.
5. As far as possible RSEB shall make arrangements to ensure uninterrupted supply of power to continuous process industry, export oriented units and units set up in EPIP.
6. All industrial areas on rural feeders will be connected to urban/industrial feeders in a phased manner for better quality of power and the cost to be incurred thereon shall be borne by RSEB and RIICO equally.
7. As far as possible, land for power plants to be set up in private sector will be allotted by RIICO close to the grid station of RSEB, at rates applicable for industrial land on priority basis.
8. Provisional fuel surcharge will henceforth be revised on a quarterly basis to avoid an undue burden on industrial units at a later stage.