Lok Sabha Question No. 3196 (UNSTARRED), answered on 2018-08-06
Subject: Industrially Backward Regions
Ministry: COMMERCE AND INDUSTRY
Asked by: RAM TAHAL CHOUDHARY, VIJAY KUMAR HANSDAK, BHAIRON PRASAD MISHRA, LAKHAN LAL SAHU

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 3196.

TO BE ANSWERED ON MONDAY, THE 6 TH  AUGUST,  2018.

## INDUSTRIALLY BACKWARD REGIONS

## 3196.  SHRI RAM TAHAL CHOUDHARY:

SHRI VIJAY KUMAR HANSDAK:

SHRI BHAIRON PRASAD MISHRA:

SHRI LAKHAN LAL SAHU:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether certain areas/regions in both plain and hilly States despite having rich natural resources are still industrially backward in the country;
- (b) if  so,  the  details  thereof  along  with  the  reaction  of  the  Government  thereto, State/UT-wise including Chhattisgarh, Madhya Pradesh and Uttar Pradesh;
- (c) whether the Government proposes to promote industrial development of the said areas/regions;
- (d) if so, the details thereof including the funds sanctioned and target fixed in this regard, State/UT-wise; and
- (e) the other steps taken by the Government to promote industrial development of the said areas/regions in the country?

## ANSWER

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a) & (b): Certain areas/regions in both plain and hilly States are having rich natural resources. States of Madhya Pradesh, Chhattisgarh and Uttar Pradesh are rich  in  mineral  resources  such  as  Diamond,  Coal,  Lime  stone,  Diaspore, Pyrophyllite, Manganese, Dolomite, Iron ore, Bauxite, Tin, etc. Hilly states of North Eastern Region and the Himalayan States are also rich in natural resources such as Coal, Petroleum, Natural gas, Lime stone, etc.

Significant progress in industrialization is being made in these States.

- (c) & (d): The  Government  is  committed  to  promote  industrial  development  of  the said  areas  /  regions.  Details  of  steps  being  taken  to  promote  industrial development  of the aforementioned areas / regions including funds sanctioned are at Annexure-I.
- (e): Other steps taken for promoting industrial development in the said areas / regions are at Annexure-II.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (c) & (d) OF THE LOK SABHA UNSTARRED QUESTION NO. 3196 FOR ANSWER ON 06.08.2018.

Details  of  steps  being  taken  to  promote  industrial  development  of  Madhya Pradesh,  Chhattisgarh,  Uttar  Pradesh,  North  Eastern  states  and  the  Himalayan states including funds sanctioned are as follows:-

##  MADHYA PRADESH

To ensure development of all the regions of the state, cluster based industrial development initiative has been adopted over the last decade. Additionally, the state has come up with new policies to attract investors.

Government of Madhya Pradesh (GoMP) has developed 1785 hectare of new industrial areas as detailed below:-

| Year    | Area (in Hectare)   |
|---------|---------------------|
| 2014-15 | 295 Hectare         |
| 2015-16 | 570 Hectare         |
| 2016-17 | 575 Hectare         |
| 2017-18 | 318 Hectare         |

Further, Industrial areas admeasuring 6,867.87 Hectares have been upgraded.

Some of the prominent industrial areas developed include:

-  Crystal IT Park, Indore.
-  Readymade Garment Park, Gadaipura, Gwalior.
-  Apparel Pharma Cluster, Indore.
-  Plastic Park, Tamot, Bhopal.
-  There are 6 govt. promoted food parks operation in the state and 2 private agency promoted food parks.
-  State  has  earmarked  areas  for  Japanese  Investors  in  Japanese Industrial  Township  (200  Ha.)  and  South  East  Asian  Investors  in South  East  and  Far  East  Asian  Nation's  Industrial  Township  (206 Ha.), near Indore. However, considering tepid response from international investors the earmarked areas are now being developed as Smart Industrial park and open to all the investors.

## Policy level initiatives:

-  In order to leverage central location of the state, the state has come up with new warehousing and logistics policy.
-  The  state  offers  special  incentive  package  for  Textile  and  food processing industry.
-  Madhya  Pradesh  has  also  announced  new  garmenting  policy  to attract garment industry in the state.
-  MP  is  the  only  state  in  India  to  come  up  with  'Tax-Delinked' investment assistance policy under GST regime.

##  CHHATTISGARH

Government  of  Chhattisgarh  is  providing  attractive subsidies,  rebates  and concessions for setting up New Industrial units / Expansion / Diversification of the existing  Industrial  units  through  various  policies (viz  industrial  policy  2014-19, agriculture and food processing policy 2012-19, logistic park policy 2018-23).

##  UTTAR PRADESH

Special  incentives  for  setting  up  of  industry  in  Bundelkhand  region  have  been announced.

##  NORTH EASTERN STATES

With the objective to promote industrialization in the states of NER, Government was  earlier  implementing  North  East  Industrial  and  Investment  Promotion  Policy (NEIIPP), 2007  which  remained  in force w.e.f. 01.04.2007  upto 31.03.2017. Incentives available under the said policy were Central Capital Investment Subsidy, Central Comprehensive Insurance Subsidy, Central Interest Subsidy, Reimbursement of Excise duty and Reimbursement of Income tax. Details of number of units setup, investment attracted and employment generated is as below:-

Year Wise Data of NE States

| Year No. of units   | Investment (Rs. in crores)   | Employment generated (no.)   |
|---------------------|------------------------------|------------------------------|
| 3070                | 1289.33 24344                | 2007-08                      |
| 5226                | 1982.21 37834                | 2008-09                      |
| 2009-10 4056        | 1259.3                       | 30690                        |
| 2010-11 2752        | 2136.24                      | 24112                        |
| 2376                | 1049.67 24984                | 2011-12                      |
| 2127                | 1863.54 19058                | 2012-13                      |
| 2013-14 2574        | 670.21                       | 20756                        |
| 2014-15 3238        | 1131.49                      | 29080                        |
| 2015-16 2225        | 354.166                      | 17327                        |
| 2016-17 3827        | 7361.53                      | 53417                        |
| G. Total 31471      | 19097.686                    | 281602                       |

NEIIPP,  2007  was  replaced  by  North  East  Industrial  Development  Scheme (NEIDS), 2017 with an outlay of Rs.3000 crore w.e.f. 01.04.2017 for a period of 5 years  and  upto  31.03.2022.  The  scheme  provides  for  Central  Capital  Investment Incentive  for  Access  to  Credit,  Central  Interest  Incentive,  Central  Comprehensive Insurance Incentive, Transport Incentive, Employment Incentive, Goods and Services Tax reimbursement and Income Tax reimbursement.

##  HIMALAYAN STATES

With the objective to promote industrialization in the Himalayan States, Government was earlier implementing Special Package of Assistance in the state of Jammu  &  Kashmir  w.e.f.  14.06.2002  and  in  the  states  of  Himachal  Pradesh  and Uttarakhand  w.e.f.  07.01.2003.  The  said  schemes  ended  on            14.06.2017  and 31.03.2017  respectively.  Large  number  of  units  was  setup  thereby  attracting substantial investment and generating significant employment.

The aforementioned schemes were replaced by Industrial Development Scheme (IDS),  2017  which  has  an  outlay  of  Rs.194.90  crore.  The  scheme  provides  for Central Capital Investment Incentive for Access to Credit and Central Comprehensive Insurance Incentive. In addition, benefit of Central Comprehensive Interest Incentive is available to the State of Jammu & Kashmir.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (e)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 3196 FOR ANSWER ON 06.08.2018.

In  order  to  attract  industries  in  Madhya  Pradesh  (M.P.),  Government  of Madhya Pradesh (GoMP) is offering electricity at low rate of Rs.3.65 per unit for 33 KV connection and Rs.3.70 for 11KV connection in Special Economic Zone, Indore. Madhya  Pradesh  Audyogik  Kendra  Vikas  Nigam  (AKVN),  Indore,  undertaking  of Department of Industrial Policy and Investment Promotion, Government of Madhya Pradesh (GoMP), is operating as a deemed distribution licensee for the same.

2. To  promote  entrepreneurship  in  M.P.,  AKVN  Indore  has  also  setup  an incubation  center  in  Indore,  named  SRIJAN.  The  facility  provides  an  enabling environment for IT start-ups in the state of Madhya Pradesh.
3. Department  of  Industrial  Policy  and  Promotion  (DIPP)  is  also  implementing Modified Industrial Infrastructure Up-gradation Scheme (MIIUS) for establishment of common  industrial  infrastructure  in  industrial  clusters  in  the  country.  Under  the Scheme,  projects  have  been  undertaken  to  upgrade  infrastructure  in  existing Industrial Parks/Estates/Areas. Twenty three projects were accorded final approval under  the  Scheme  including  10  projects  in  the  States  of  Chhattisgarh,  Himachal Pradesh, Jammu & Kashmir, Mizoram, Madhya Pradesh and Tripura. These projects on  completion  are  likely  to  provide  direct  and  indirect  employment  in  the  above clusters and also lead to growth of industries.

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