There's bad news for corporate houses planning to expand or invest in Madhya Pradesh.
The State Government plans to amend existing Industrial Promotional Policy 2004, launched by the then Chief Minister Uma Bharti, although the policy is meant for the period 2004-2009.
A sub-committee has been formed to review the policy with amended version likely to be announced soon from Shivraj Singh Chouhan Government.
The Government has sought suggestions from industry associations in the new policy, which is likely to be declared after the review.
The present industrial policy offers concessions to sick units, to companies with expansion plans in sales tax (now VAT), and power subsidies to sick units.
This has led to the State incurring large amounts of losses.
A sub-committee will review existing industrial promotion policy and is likely to do away with some of the concessions.
The committee has Power and Public Works Department Minister Kailash Vijayvergiya, Finance Minister Raghavji and Commercial Tax and Industry Minister Babulal Gaur.
The main drawbacks of the industry policy are exemptions on power bills to sick units or units marked to be taken over and revival of sick small-scale segment.
Offers of exemptions from mandi tax to food-processing industry on purchase of raw materials.
Exemption of 2 per cent offered to textile unit on yarn purchased from State.
The industrial units have taken undue advantage of power bills.
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