Rajasthan Industrial and Investment Promotion Policy – 2010 :

The endeavor of the government is to create sustainable economic growth with increasing participation of the private sector and promote a conducive climate that enables private sector to flourish. Rajasthan has factor advantages in a number of sectors backed by favourable policies and support. However, infrastructure and skills must keep pace with the growth momentum.

Need for a New Policy :

Eleventh Five Year Plan (2007-2012) of the country has targeted average inclusive growth rate of 9% along with 12% growth of the manufacturing sector. Raising the rate of growth of the manufacturing sector to 12% p.a. by the end of plan period is also stated as a priority in the 11th Five Year Plan of Rajasthan.

Vision :

Government of Rajasthan is committed to catalyzing investments, accelerating inclusive economic growth and creating large scale employment opportunities for its people.

Objectives :

The main objectives of the Rajasthan Industrial And Investment Promotion Policy 2010 are :

1. To achieve higher and sustainable economic growth through greater private investment in manufacturing as well as service sectors .
2. To promote environmentally sustainable industrial growth and balanced regional development .
3. To create a supportive policy and institutional environment as well as infrastructure that facilitates and fosters private sector investment and enterprise.
4. To encourage rapid growth of sectors in which Rajasthan has natural or strategic advantages.
5. To achieve optimal development of human capital and promote a knowledge led growth.
6. Enhance employment opportunities for the growing youth population.

Strategy :

The policy interventions are aimed at enhancing enterprise and sector competitiveness while stimulating a substantial increase in the flow of investment from within India and from abroad. The key measures are aimed at :

1. Improving the Business Climate
2. Developing High Quality Infrastructure
3. Enhancing Skills Levels and Employability
4. Ensuring Easy Availability of Land for Projects
5. Encouraging MSME

6. Promoting Identified Thrust Areas

1. Improving the Business Climate :

The key interventions for improving business climate would be:

A. Strengthening of the Single Window System
a. Special Packages by Council of Ministers (Cabinet) b. Rajasthan Enterprises Single Point Enabling and Clearance Act (RESPECT) c. Single Point Eletctronic Clearance and Monitoring System
B. Simplification and Rationalization of Regulatory Mechanisms. a. Setting up of “Udyogik Salahakar Samiti” (Industrial Advisory Council).
C. Strengthening of the Single Window System .: State Government will bring in legislation to provide for a statutory mechanism to provide single point services to businesses in the State, explicitly stating time limits for providing these services and for transfer of jurisdiction to a single point clearance authority in case permissions are not provided by the competent authorities within the prescribed time limits.
D. Simplification and Rationalization of Regulatory Mechanisms.
E. Setting up of Udyogik Salahakar Samiti (Industrial Advisory Council) To establish and strengthen public private dialogue, Government has set up “Udyogik Salahakar Samiti” (Industrial Advisory Council) under Chairmanship of the Minister of Industries.

2. Developing High Quality Infrastructure :

The quality, accessibility and affordability of physical and social infrastructures are major determinants of growth. They complement a good policy environment and institutional framework, to create necessary ambient conditions which are an important pre requisite for attracting investment, sustaining growth of business & industry and creation of employment opportunities. It is therefore, proposed to enhance the competitiveness of enterprises in Rajasthan by providing quality network of roads, uninterrupted power availability, adequate water, high speed data transfer connectivity, efficient logistics facilities, etc.
A. Setting up Infrastructure Development Board To facilitate higher flow of funds into infrastructure sector and to ensure coordination among various government agencies in the State, a Board with statutory powers will be set up. It would be a single point mechanism for expeditious clearance of infrastructure development projects with private participation in PPP mode.
B. Upgrading of Existing Areas by RIICO.
C. RIICO as a Provider of Common Infrastructure Services.
D. Development of Logistics Parks : Government recognizes the importance of logistics as a strategic variable. The activities within the sphere of logistics involve inland freight transportation, warehousing, material handling, protective packaging, inventory control, order processing, and marketing, forecasting and customer service.

3. Enhancing Skill Levels and Employability :

All sectors of the economy increasingly rely on knowledge and skills of its people. Therefore, skill development for improving employability of the people of Rajasthan is a major priority area of the State Government. The Policy aims at building industry and market driven specialized skills and thereby enhancing employability of the workforce in the State. This would be done primarily with involvement and participation of the industry and other stakeholders
A. “Train to Gain Scheme” for On-the-job Training.
B. Upgrade Industrial Training Centres into Centres of Excellence.
C. Skill Mapping and Survey.
D. Utilising Existing Training Infrastructure
E. Rajiv Gandhi Skill Schools i. To provide vocational training to youth, primarily the poor, school drop-outs, etc. and to make them “employable” in organized sectors, GoR would support leading players in education and training field, to set up state-of-the-art Rajiv Gandhi Skill Schools (RGSS). These Schools shall provide high quality, market driven, placement linked training in specific areas to the targeted youth and would have infrastructure facilities like institutional buildings, class rooms, tool room, laboratories, workshops, hostels, canteen, etc., with a capacity to train at least 1000 students every year.

4. Ensuring Easy Availability of Land :

Prompt and easy availability of land for investment projects at a reasonable price is one of the main concerns of most investors. Being the largest state in India with large tracts of waste and less fertile land, land would be leveraged as a resource to attract and facilitate investments in the State.
A.Simplifying Land Acquisition Process
B.Easing Procedures for Land Use Change/Conversion/Approvals of Layout/Building plans
C. Creating Land Bank

5. Focus on MSMEs Growth :

A vibrant MSME sector is critical for investment, growth, employment creation and poverty reduction. By its less capital intensive and high labour absorption nature, the MSME sector can make significant contributions to employment generation and also to rural industrialization. MSMEs are facing tremendous challenges to survive and sustain. Required interventions have been made in the MSME Policy to address basic problems of access to finance, R&D investment, access to technology, product innovation, marketing & e-marketing support, etc.
A. Incentives to MSME under MSME Policy launched in 2008 would continue.
B. Cluster Development : The state will continue to accord priority to cluster development of MSMEs in the entire state.
C. A Scheme for Financial Assistance for Cluster Development in SPV Modewould be introduced.
D. To encourage women entrepreneurs in micro and cottage industry, Rajasthan Financial Corporation will launch a special scheme of providing loan at subsidised rates.

6. Promotion of Thrust Areas :

Employment quotient per unit of capital is comparatively higher in certain sectors. Rajasthan has a competitive advantage in some sectors like agro processing, textile, mineral products, handicraft, handloom, gems and jewellery which have a major share in the industrial output. The state also has a strong raw material base for many of these sectors. Special encouragement shall be given to all these sectors as thrust areas.

Conclusion :

Rajasthan's new Industrial & Investment Promotion Policy is comprehensive in its approach and reach. It intends to promote not only industrial investments, but also service sector enterprises. It lays special emphasis on infrastructure and skill development in the State. Present Industrial and Investment Promotion Policy 2010 takes a holistic approach to promote private investment by addressing all the variables that substantially affect the attractiveness of a location as an investment destination.

It seeks to achieve a quantum improvement in the numerous, critical components — land, infrastructure, skill-pool, policy environment, investor experience — that constitute the core of the industrial and investment ecosystem.To ensure its effective implementation, necessary funds will be provided. A committee headed by Chief Secretary will periodically review its implementation