Industrial draft policy bets big on making of electric vehicles
Jaipur: In a bid to take early bird advantage, the state government is planning to set up an electric vehicle research and manufacturing zone. As spelt out in the new draft industrial policy, the government will also offer financial incentives to encourage component manufacturing for EVs and proposes to bring in a dedicated policy to provide impetus to the sector.
In a departure from the past, the draft proposes to make provisions for allotment of land on short-term leases. The government believes that the move will reduce the land cost for the entrepreneurs as the leases would be for 30 years instead of 99-years. But Suresh Agarwal, president of the Federation of Rajasthan Trade and Industry (FORTI) said that while other states are moving to free-hold in place of 99-year lease, the proposal of 30-year lease will discourage industry.
Increased power tariff for industry has been a contentious issue in the state after recent hikes. To assuage the business community and make the industry competitive, the draft policy talks of introducing dynamic power tariffs, simplification and reduction of wheeling charges, reducing additional surcharges and waiving cross-subsidy on open access.
The draft mentions of bringing in a special tariff for steel and textiles industries. Incentives for units engaged in manufacturing of PV solar and battery modules and duty waiver on actual use of captive power have been proposed. The government also plans to provide power to apparel, handloom, and certain handicrafts products at residential rates.
Agro food processing sector has been given a new thrust as the draft proposes to strengthen infrastructure and offer fiscal support to units set up by agro cooperatives. Establishment of cold storage chains, new testing labs and certification labs will be undertaken, the draft said.
“Rajasthan Agricultural Produce Market Act and its amendments shall be reviewed to align to present needs of the sector,” said the draft policy.
“The emphasis on food processing industry with additional stimulus to FPOs and agro-cooperatives, start-ups, cold chains, testing and certification labs is a welcome policy intervention towards promoting rural entrepreneurship,” said Atul Sharma, head of FICCI-Rajasthan. Sharma said the provision to create an institutional mechanism to monitor the policy implementation is a good initiative.
The draft tries to address some nagging issues related to land prices, its acquisition and conversion. While barren land in backward area will allotted at concessional rate, provision to permit Khatedari land for mix land use – industrial, commercial and residential – purposes without conversion charges are aimed at attracting industry.
Source: timesofindia.indiatimes
