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Industrial Policy and Its Spatial Implications in Haryana - 1 | HPSC Preparation: All subjects - HPSC (Haryana) PDF Download

Abstract


This Paper discussed about the importance of different industrial policies like Haryana State Industrial & Infrastructure Development Corporation Ltd. (HSIIDC), Haryana State Industrial Development Corporation Ltd. (HSIDC), Haryana Financial Corporation (HFC), Haryana State Pollution Control Board, The Micro, Small & Medium Enterprises Development Institute (MSME), Delhi Mumbai Industrial Corridor (DMIC), National Small Industries Corporation Ltd. (NSIC), The Khadi and Village Industries Commission (KVIC), District Industries Centers (DIC), Special Economic Zones (SEZs) etc. and how they are helping in industrial development in the state with their possible contribution. As well as how much they are effective in different regions because geography is study of space so impact of these policies on different regions is foremost for this paper.
Keywords: Industrialisation, Policies, Development, Government

Introduction


The notion of ‘Industrial Policy’ is widespread and it covers all those principles, policies, rules which control the industrial venture of a country and shape the pattern of industrialization. The state government broadly follows the objectives assign by the central government with some modifications. The role of state in the undertaking of industrialization has been forecast in the different form. Mainly includes:
Recommending different industrial policies from time to time in matters relating to its structure (type of industries) organization (large and medium scale industry or small or cottage industry). Industrial location policy by way of direct investment in government – owned enterprises, both central and state, modeling of industrial – estates, declaring industrially backward areas for providing special incentives and subsidies to industries located there.
The policies before 1966 were not fruitful when Haryana was part of Punjab province. There are no suitable results on basis of industrial development. After 1966 major concerning issue was Green Revolution, ultimately results were not so much positive in context of establishment of industries except one or two districts. Later Green Revolution also helped to enhance the development of industrial process especially agro- based industries.
After this so many industrial policies were formulated and implemented. Each policy has different objectives and aims on basis of requirement of different areas time to time.

  • One of the most important was Industrial Policy (IP) 1992. This Industrial Policy (1992) announced in tandem with the economic reforms brought out by the Central Government. This Policy was an incentive centric approach to attract investment.
  • Industrial Policy (IP) 1997 with its basic objective ‘infrastructure’ which led approach to industrial development.
  • After this Industrial Policy (IP) 1999 was formulated. Aim of this policy was promoting industrial growth in the context of overall economic value addition. The main emphasis was on infrastructure development through private initiative.
  • Industrial Policy (IP) 2005 was focused to capture these opportunities, enhanced the strengths of the State in agriculture. As well as its established comparative advantage in manufacturing and this will helpful in promotion of investment and taking industry to front ranks of global competition.
  • Haryana State Government has enacted an Industrial Promotion Act 2005. This act introduced selfcertification schemes. These schemes made provision for outsourcing of the authority to provide enabling environment for investors on large scale. As a result of its investor friendly policies, the State has been successful in attracting huge investments. The State has been created an example in per capita investment for the year 2007 as per the CMIE report.
  • On basis of increasing number of industries Haryana State recognizes the increased role of Public Private Partnerships. The new industrial policy came into effect from 01.01.2011. Accordingly, the policy laid down a well-defined roadmap in this direction. Most importantly adoption of Information and Communication Technology (ICT) brought efficiency and transparency in delivery of services, eliminates procedural delays and minimize the transaction costs. The policy lays down a time-frame for a complete switch-over to IT enabled regime of approvals and clearances. Self-certification and outsourcing of certain services places greater reliance on self regulation by the key stakeholders.

Objectives

  • To analyze the role of different industrial policies
  • To examine the contribution of industrial policies in development of state

Methodology


The present study entitled “Industrial Policy and Its Spatial Implications in Haryana” will be based on secondary data sources. The secondary data for the present study will be collected from different sources of Government and Semi-Government publication. The time period has been selected for spatial pattern of industrialization from pre to post formation of Haryana. The relevant and supportive data on various aspects of Industries such as types of industries, number of Industries, distribution and availability and its accessibility will be collected from Industrial Department of Haryana, Chandigarh, Annual Reports of Ministry of MSME, Government of India, Various Census publications of Haryana, www.censusindia.gov.in/2011census and different issues of Statistical  Abstract of Haryana, Economic Survey of Haryana 2017-18. 

Focused Points Of Industrial Policies


The following points are focused to be achieved through the different industrial policy:

  • “Higher, sustainable and inclusive economic growth by attracting investments in a focused and structured manner in potential areas;
  • Promote private sector investment through Public Private Partnerships;
  • Employment generation and enhanced employability through skill development;
  • Continued thrust on manufacturing sector as a key driver of economic growth;
  • Generation of entrepreneurial opportunities across all sectors of the economy;
  • Facilitation of spatial dispersal of economic activities particularly in industrially lesser developed regions of the State;
  • Sustainable development by adopting environment friendly technologies.”(Haryana Government Gazette, 2010)

Contribution of Major industrial policies which changed the picture if industrial developments in Haryana are

Haryana State Industrial & Infrastructure Development Corporation Ltd. (HSIIDC) Industrial Infrastructure Development: 
HSIIDC is the nodal organization for development of Industrial Infrastructure in the Haryana State. After acquisition of land through the Department of Industries, Government of Haryana, the Corporation formulate a detailed plan for its better development and thereafter the important step is executes various development works and it mainly includes construction of roads, better water supply, sewage, drainage and electrical infrastructure. After this the other important secondary level of facilities are also followed like development of plantation, green belts, commercial and institutional sites, common parking facilities, etc. In this whole process, the Corporation has developed Industrial Model Townships, Industrial Estates and Industrial Clusters or Theme Parks at strategic locations and drafted its own set of guidelines for their better governance. The Industrial Policy announced by the State Government provides that the State Development Agency or HSIIDC shall draft its own internal set of guidelines for the management of industrial estates. It includes the terms and conditions for allotment, transfer, leasing, etc. of plots and all other related procedures to be followed by the State Developing Agency as well as the allottees of plots. These guidelines collectively called the Estate Management Procedures (EMP). The decision of HSIIDC has been following a determined set of guidelines in the past. The last set of such guidelines including the terms and conditions of allotment and procedure of subsequent requests were given in the EMP-2005. After the passage of time, these internal guidelines have been reviewed and revised which approved by the Board of Directors of HSIIDC meeting held on 20th December 2010 and have come into operation 01.01.2011 and are hereafter it is known as "EMP-2011".

  • Financial Assistance 
    This Corporation provides financial help by term loan up to Rs. 2500 Lakh for each proposal for framework of a project in MSME Sector or Large scale sector except micro units or for expansion or diversification and modernization of existing industrial unit in the State of Haryana. HSIIDC also offers a wide range of products to its target customer segments to meet their specific financial needs.
  • Skill Development Initiatives
    HSIIDC has entered into a Memorandum of Understanding to enhance the skills of the landowners as well as improve their employment ability. The socio-economic impact assessment and the aspiration study have already been committed for about 4,000 persons by in Rohtak and Faridabad Districts, for enhance the skill requirements of the trainees under this porgramme. Except this a number of institutes have been started in various Industrial Model Township and Industrial Estates by HSIIDC for development of specific skill such as Footwear Design and Development Center, IMT Rohtak; Indian Institute of Corporate Affairs, IMT Manesar, National Automotive Testing Research R&D Infrastructure Project at IMT Manesar and National Institute of Design. (Government of India, Ministry of MSME, Haryana,2015-16)
  • Industrial Model Townships
    The HSIIDC has developed an Industrial Model Township (IMT) at Manesar. After this other IMTs are being developed at Rohtak (3800 acres), Faridabad (1800 acres), Roz-ka-Meo (1500 acres) and Kharkhoda (3000 acres). While the development works for IMTs at Rohtak and Faridabad are underway, plans are being finalized for the Roz-ka-Meo and acquisition of land for the IMT at Kharkhoda has been initiated.
    These townships will have area for large industries, ICT parks, industrial plots, factories, residential facilities, commercial and institutional areas, skill development & health care facilities etc. The development will be of international standards with power, water supply, roads, sewerage, effluent disposal, solid waste management to enable enterprises to function in amusing environment.
  • Industry-cum-Service Centers 
    To facilitate development of micro, small & medium industry and facilitate economic development in industrially backward areas, HSIIDC plans to set up Industry-cum- Service Centers at various locations in the State. These Industry-cum-Service Centers are to be developed in Kaithal, Hisar, Bhiwani, Sampla, Narnaul, Mahendergarh, Jhajjar and Gohana, on areas ranging between 250 acres to 1000 acres.
    In this way HSIIDC helped and enhanced the level of development as well as provided plethora of employment. (Haryana Government Gazette, 2010).

Haryana State Industrial Development Corporation Ltd.


HSIDC (Haryana State Industrial Development Corporation) established in 1967, is a Public Limited Company which is owned by the Government of Haryana. HSIDC set up for promoting and accelerating the speed of industrialization in the state. The Corporation provides a wide scope of financial services. This included concept "Total Financial Support" for its clients. HSIDC is a customer-oriented organization, has often gone beyond the call of duty in helping to give tangible shape to the destiny and vision of thousands of entrepreneurs. Generally it plays the role of a trusted friend as well as guide which is providing crucial support and most important of all, creating an environment where emerging projects is able to attain their fulfillment and become spirited industries.
In present time, HSIDC is a strongly framed team of highly experienced financial experts, engineers, professionals, administrators and technicians. HSIDC is comprises of very dedicated personnel, all of whom thrive on team work and a consistency work spirit.

HSIDC Objectives

  • The identification and promotion of large and medium sector projects.
  • To help in providing financial assistance by way of term loans/direct participation in equity.
  • To facilitating infrastructural development.
  • To performing agency functions on behalf of the State Government/IDBI/SIDBI.
  • To providing financial services to the entrepreneurs and established industries for enhancement of the capacity or modernization.
  • To providing Merchant Banking Services. (Government of India, Ministry of MSME, Haryana,2015-16)

Haryana Financial Corporation Ltd.

  • Haryana Financial Corporation (HFC) has been set up under an Act of Parliament which is known as State Financial Corporation's Act 1951 and the working is governed by this act. The Head Office of the Corporation is at Chandigarh and Branch Offices at various District Headquarter of the State. It is providing financial services to the entrepreneurs which are helpful to established industries for development of the modernization. (Government of India, Ministry of MSME, Haryana,2015-16)

Haryana State Pollution Control Board


The functions and responsibilities of the Board are as under:

  • To plan a comprehensive program for the prevention and control of pollution of streams and wells as well as of air in the State and to secure the implementation thereof :
  • To advise the State Government on any matter concerning the prevention, control or decline of Pollution.
  • To collect and disseminate information relating to pollution and the prevention, control or decline thereof:
  • To encourage, conduct and participate in investigations and research relating problems of pollution and prevention, control or decline of pollution.
  • To associate with the Central Board in organizing the training of persons engaged or to be engaged in programs relating to prevention, control or decline of pollution and to organize mass education programs relating thereto :
  • To examine sewage or trade emission, works and plants for the treatment of sewage and trade emission and to review plans, specifications or other data relating to treatment plants and the system for the disposal of sewage or in connection with the grant of any agreement as required by this act ;
  • To lay down, refine or annul effluent standards for the sewage and trade effluents and for the quality of receiving waters resulting from the discharge of effluents and to classify waters of the State
  • To develop economical and reliable methods of treatment of sewage and trade effluents, having regard to the unusual conditions of soils, climate and water resources of different regions and more especially the prevailing flow characteristics of water in streams and wells which contribute it impossible to attain even the minimum degree of dilution ;
  • To develop methods of utilization of sewage and suitable trade effluents in agriculture
  • To develop efficient methods of disposal of sewage and trade effluents on land, as are requisite on account of the predominant conditions of limited stream flows that do not provide for major part of the year the minimum degree of dilution;
  • To lay down levels of treatment of sewage and trade effluents to be discharged into any particular stream taking into account the minimum fair weather dilution available in that stream and the sufferance limits of pollution permissible in the water of the stream, after the discharge of such effluents ;
  • To make, differ or cancel any order :- (i) for the prevention, control or decline or discharges of waste into streams or wells; (ii) requiring any person anxious to construct new systems for the disposal of sewage and trade effluents or to change, improve or extend any such existing system or to adopt such remedial measures as are necessary to prevent, control or decline water pollution ;
  • To lay down effluent quality to be organize with by persons while causing discharge of sewage or sludge or both and to lay down, change or annual effluent standards for the sewage and trade effluents;
  • To Grant authorization under Hazardous Waste Rules, 1989
  • To Grant licensed under Bio-Medical Waste Rules, 1998.
  • To execute the provisions of Noise pollution (Regulations & Rules)
  • To execute the provisions of the Manufacture, Use, Import, Export and Storage of Hazardous Micro-Organism Genetically Engineered Organism or Cells Rules, 1989.
  • To execute the provisions of the Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989, as amended to date.
  • To execute the provisions of the Chemical Accidents (Emergency Planning, Preparedness and Response) Rules, 1996.
  • To execute the provisions of the Recycled Plastics Manufacture and Usage Rules, 1999
  • To execute the provisions of the Ozone Depleting Substances (Regulation) Rules, 2000.
  • To execute the provisions of the Batteries (Management and Handling) Rules, 2001
  • To execute the provisions of Control of Solid Waste Management under Notification of Solid Waste Management issued by the Ministry of Environment, Govt.of India vide No. SO 908 (E) dated 25.9.2000.
  • To guide the State Government with respect to the location of any industry the carrying on of which is likely to pollute a stream or well or suitability of any premises or location for carrying on any industry which is likely to cause air pollution.(Government of India, Ministry of MSME, Haryana,2015-16)
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FAQs on Industrial Policy and Its Spatial Implications in Haryana - 1 - HPSC Preparation: All subjects - HPSC (Haryana)

1. What is industrial policy and why is it important for economic development in Haryana?
Ans. Industrial policy refers to the government's strategic approach in promoting and regulating industrial development within a specific region or country. In the case of Haryana, industrial policy plays a crucial role in driving economic growth, attracting investments, creating employment opportunities, and improving the overall standard of living for its residents. It provides a roadmap for the government to identify key sectors, set priorities, and allocate resources to foster industrialization and economic diversification.
2. What are the spatial implications of industrial policy in Haryana?
Ans. The spatial implications of industrial policy in Haryana refer to the geographical distribution and spatial planning of industrial activities within the state. The policy aims to promote balanced regional development by encouraging industrial growth in both urban and rural areas. This ensures that industrial infrastructure and opportunities are not concentrated in a few specific locations but are spread across different regions, contributing to the overall development and reducing regional disparities.
3. How does industrial policy attract investments in Haryana?
Ans. Industrial policy in Haryana attracts investments by offering various incentives and benefits to potential investors. These may include tax incentives, subsidies, land allocation, infrastructure support, and streamlined administrative processes. The policy also focuses on improving the ease of doing business by reducing bureaucratic hurdles and providing a favorable business environment. By creating an investor-friendly ecosystem, the industrial policy aims to attract both domestic and foreign investments, thereby stimulating economic growth in the state.
4. What sectors are prioritized under Haryana's industrial policy?
Ans. Haryana's industrial policy prioritizes several sectors based on their potential for growth and contribution to the state's economy. These sectors include automobile and auto components, textiles and apparel, electronics and IT hardware, agro-processing and food processing, pharmaceuticals, renewable energy, and logistics. The policy aims to leverage the state's existing strengths and resources in these sectors to attract investments, create employment opportunities, and promote sustainable industrial development.
5. How does the industrial policy in Haryana address the issue of environmental sustainability?
Ans. The industrial policy in Haryana recognizes the importance of environmental sustainability and promotes eco-friendly practices in industrial development. It emphasizes the adoption of clean and green technologies, waste management systems, and resource optimization to minimize the environmental impact of industries. The policy also encourages the establishment of industrial parks and clusters with integrated environmental management systems. By integrating environmental considerations into industrial planning and development, the policy aims to achieve sustainable growth and protect the state's natural resources.
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