Better late then never. The Government has realised that the industry needs Infrastructure and not the Incentives.

Concerned about the industrial backwardness in parts of the State despite the existing incentive policy, the Government is veering around to the view that the "incentive war" should end at the earliest and that the emphasis should shift more towards "infrastructure" in the proposed 2000-2005 State Industrial Policy.

According to Sachivalaya sources, the Government will soon set up a high-level experts committee to study the growing industrial backwardness in several talukas and suggest measures to bring about industrial development based on socio-economic parameters in those areas identified as industrially backward,

Apparently alarmed by the "incentive war" raging between Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu, the State Government was reported to have decided to approach the National Development Council’s subcommittee with a request to end this war.

The sources said though the NDC’s sub-committee comprising of Chief Ministers of ‘different states had already recommended an end to the "incentive war", the Gujarat Government would again request the NDC to end this war at the earliest, since the State Finance Department had expressed its reservations about the incentive and subsidy culture.

The sources conceded that Gujarat was fast losing a competitive edge for the water, power and sales tax rates and also GIDC land prices are much higher than what one finds in other industrially advanced states in the country.

Similar concern was expressed at a high-level meeting Chief Minister Keshubhai Patel had with his senior Cabinet colleagues, and officials here on Thursday, to review the progress of the 1995-2000 State Industrial Policy and the incentive ‘policy.

Directing the concerned officials to begin an exercise to evolve a new State Industrial Policy for 2000-2005, as the term of the present policy expires in August next year, the Chief Minister suggested that the thrust of the new policy should be on the Information Technology and Agro-industries sector keeping in view the fast changing industrial scenario in the country.

Suresh Mehta said there should be a balance between backward area development and industry specific development since most of the industries were coming up only on the Golden Corridor stretching from Mehsana in North Gujarat to Vapi in South Gujarat, with little industrial development in the identified backward areas of the State.

Compiled from local news media