M A I N   N E W S

CM’S ADVISORY PANEL REPORT-II
Govt should act as facilitator
P. P. S. Gill
Tribune News Service

Chandigarh, July 8
The A.S. Chatha Committee report on revival of industry in Punjab refers to the 1996 industrial policy that had special incentives for industries like electronics, agro-industries and units coming up in rural focal points. However, these incentives were neither pursued with vigour and commitment nor adequate budget provisions made, which economically strangulated the industrial spirit in the state.

The report now wants the government to act as a facilitator rather than imposing Inspectors on enterprises. The government should put in place a simplified system of compliance needs by introducing voluntary self-certification and licensing of the certification authority to qualified persons. The report also touches upon the issue of truck unions and suggests the District Magistrates’ intervention to fix tariff.

To evenly promote industrial growth, it has recommended the setting up of special agri-export zones, economic zones and export zones, besides the creation of an industrial parks development authority, on the pattern of the Punjab Urban Housing and Development Authority. For the proposed authority, it has suggested upgradation of the infrastructure wing of the Punjab Small Industries Export Corporation.

The report has identified the state’s “industrial corridor’’ consisting of Amritsar-Jalandhar-Ludhiana-Mandi Gobindgarh-Patiala-Mohali-Derabassi-Lalru, where one or the other proposed special zone could be carved out. The identified product areas, where Punjab has comparative cost advantage are: light engineering (cycles and cycle parts, automotive components, domestic appliances, hand tools etc), textiles, agri-processing, leather and sports goods. And the areas where competitive edge can be developed are: pharmaceutical, electronics and biotechnology.

The report, besides suggesting several “aggressive’’ steps has, in tune with the changing time and trends in the corporate world, recommended a major policy shift to open various facets and physical and social infrastructure to the private sector. This could include power, roads, urban development, industrial estates and parks, civic services, education and public health.

Punjab is yet to make a beginning with the much-hyped IIIT to be set up at a cost of Rs 30 crore at Mohali in Collaboration with Mahindra and Mahindra. The report suggests express steps to improve human resource development through professional institutions like IITs, IIMs and ITIs. Avenues of higher learning in science, technology, information technology and biotechnology must be explored expeditiously. It has recommended the setting up of a software park at Patiala, on the pattern of one at Mohali.

A chapter is devoted to ‘’focus’’ industries and another to ‘’re-capitalising’’ of the state financial institutions to help the PFC and the PSIDC effect recoveries of outstanding loans and equity. For this, the creation of a special purpose vehicle (SPV) is proposed to which all powers vested with the financial institutions viz section 29 of the SFC Act and the Land Revenue Recovery Act and sale of mortgaged assets with the help of the Debt Recovery Tribunal should be given to the SPV.

Likewise, negotiating committees could be set up to identify and categorise various “sick’’ units and recoveries effected. Unless the PFC and the PSIDC adopted measures to provide “value-added services’’ to enterprises, changed their future plans, much would not change, as continuation of the two is imperative to industrial development, it notes.

The other recommendations are in respect of attracting foreign direct investment, as also from NRIs (Punjabis).

The bottomline of the report is that if Punjab is to market itself as an “investment destination’’, the government must improve its credibility to be able to win the confidence of the entrepreneur.

(Concluded)