The Government of India has been implementing the New Economic Policy based on globalization, liberalization and privatization since 1991. The implementation of the above policy as such, without taking into consideration the industrial situation and the circumstances prevailing in Kerala, had resulted in a serious crisis in the Industrial Sector and even some of the prestigious PSUs were on the verge of disinvestments. It was at this juncture that the present Government assumed power. The traditional and small-scale industries and even the electronics industry including the State’s pioneering venture, KELTRON, were also facing the same fate. Apart from this, administrative flaws in several industries, structural defects, inadequacies of infrastructural facilities, lack of modernisation and adversification on the basis of current technology, absence of adequate production strategy and scarcity of electricity were also reasons for this crisis. Moreover, the negative attitude adopted by the Central Government in the matter of electricity to Kerala and the criminal negligence shown by the previous Government added to the gravity of the situation. The neglect shown by the Central Government through the gradual decrease in Central investment, their lapse in protecting and strengthening the Central Public Sector in Kerala, the negative approach adopted by the Nationalized Banks in industrial investment, all added fuel to the fire. The Central investment of 3.06% in 1970 declined to 1.32% in 1996. So also, the credit deposit ratio of 55.8% in 1969 has gone down to 44.9% in 1997. This shows the neglect shown to this State by the Central Government

The unique achievements of our State in the Socio-economic sectors have been universally acknowledged. This should have served as a launch pad for a take-off in industrial investment and productivity. It has to be admitted that the achievements have fallen short of the objectives, that the real potential has not been realized and that the attempts made in the past have not yielded the desired results. This forms the background for the need for a new policy statement, which would set the direction for a planned effort for industrial promotion and revival.


The overall objectives and features of the policy can be listed as under:

  1. Accelerated rate of industrial growth in the state, the target being 9% average annual growth.
  2. Creation of massive employment opportunities in the industrial sector of the State
  3. Creation of necessary infrastructure facilities for establishing industries.
  4. Conversion of State Public Sector Undertakings into performing assets and ensuring their development, diversification and modernisation.
  5. Modernization of the traditional sector to make it more dynamic, competitive & self-reliant, and ensuring decent wages for the workers.
  6. Attract domestic & foreign private investments subject to the existing laws governing it.
  7. Optimum utilization of the resources and potentials available in the state.
  8. Creation of a management culture an promotion of cordial industrial and labour relations.
  9. Provide necessary assistance for the marketing of industrial products in both internal and external markets at favourable terms & conditions.
  10. Revival of sick & closed units both in private and public sectors and maximum utilization of their assets and technology.
  11. Promotion of non-polluting machinery & technology and the use of renewable sources of energy.
  12. Revitalization of the delivery mechanism with a view to making it more efficient, transparent and accountable.
  13. To take necessary steps to get increased Central investment for the industrial development of Kerala.
  14. Expansion of welfare schemes.
  15. Promotion of agro-based industries like coconut processing units.


The industrial activities in the State of Kerala can broadly be classified under Traditional industries, Small-scale industries including Khadi & Village industries, Large & medium Private sector units and Public Sector Units. There are a number of specific problems in each of these sectors. Also, there are certain general problems confronting the State’s industrial sector as a whole. This policy attempts to effectively intervene in and tackle these problems in toto.

New Investment

This policy paper proposes to provide direct and credible answers to all queries, which follow from the basic question – why invest in Kerala. The quick answers are:

  1. High Quality Manpower availability of intelligent and well-trained personnel for all types of jobs.

  2. Industrial Infrastructure – export processing zones, industrial parks and growth centers with all essential facilities.

  3. Transport and Communication Infrastructure – three airports [including one under construction] with international flights; one major port, and a large number of minor ports scattered over a 600 km coastline; a well developed network of roads; excellent rail connections.

  4. Resources – abundant agricultural produce like rubber, tea, coffee and spices like pepper & cardamom; marine products; rare minerals.

  5. Market – a large consumer base of 30 million people who are 100% literate. Most of the new industrial investment will be from investors within the state, those from other states, Non-Resident Indians and foreign companies. The fact that the quality of the above mentioned positive indicators has steadily improved over the years needs to be highlighted to channelise such investments. Also the apprehensions about the suitability of Kerala as an industrial destination has to be addressed. This policy envisages clear strategies to overcome these misgivings.

  6. *Power and energy: Government have prepared schemes to attain self sufficiency in power by the year 200 as detailed in the Energy policy announced by the Government. Many of the industrial parks will have captive power plants to meet any eventuality in the supply of electricity. The L.N.G. terminal to be started at cochin will cause a great change in the energy sector.

  7. *Labour: It is well accepted that the labour problems in Kerala and the strong demands on behalf of the workers are mostly in the unorganized sector. There has to be an effort to take the right message to the workers at the lowest level.
    At the same time, the view that Kerala’s industrialization is adversely affected by labour problems is not correct. Statistics in this regard indicate that compared to other states, the loss of man-days due to labour problems is less in Kerala.

  8. Procedures – The procedures will be simple and transparent under the democratically decentralized set up. Integrity, efficiency and friendliness of the administration will be ensured, and the escort services offered by KINFRA, KSIDC, TECHNOPARK etc. will be strengthened.

  9. Land – While it is true that land is scarce in Kerala because of the high density of population, a determined effort has already been initiated to ensure that developed industrial land is available at reasonable prices.

The Thrust sectors

All 100% EOUs and tiny, small, medium or large units in sectors like Information Technology, Tourism, Agro-based business including including food processing, Readymade garments, Ayurvedic medicines, Mining, Marine products, Light engineering, Biotechnology & Rubber based industries shall be accorded the status of Thrust sector industries. Considering our strengths & opportunities, Government is of the view that sustainable development of our state would require a greater focus on the Thrust sectors. The policy has several specific functional strategies for the accelerated growth of the Thrust sector industries. Specialized industrial parks with state-of-the-art infrastructure will be developed for each of the Thrust sector segments. The policy also envisages a promotional package for the Thrust sectors encompassing specific incentives, support for research & technology development, improved information sharing and assistance in marketing & export promotion.

Existing Industries

Efficient performance of the existing industries is as important as the setting up of new ventures. Upgradation of technology and modernisation are vital for the existing industries to survive in an environment, which is becoming increasingly competitive. A variety of measures are contemplated for existing industries, both in the private sector and in the public sector. State Public Sector investment will be made for the expansion and modernisation of existing units, and to certain areas with socio-economic or strategic significance. All possible assistance will be given for the revival of closed & sick industries.


1. Infrastructure

Government have already adopted a dynamic outlook on the infrastructure development front, understanding its far reaching impact on economic growth, expanding industrialization, enhancing exports and creating employment opportunities.

  1. As part of the Government’s efforts towards the promotion of industries and the protection of environment, a major part of the new investment will be directed towards industrial parks already created or to be set up in various parts of the state. For the thrust sectors, there will be specialized parks, where requisite infrastructure as well as common facilities will be provided. Cluster level business associations will be created/activated.

  2. Infrastructure projects require large-scale investments, which cannot be totally met from the Government’s budget. Government will actively support private sector participation in infrastructure development, including industrial parks, not only to mobilize money for investment but also with a view to use the expertise & operational efficiency of identified private partners.

  3. To enhance the economic viability of projects taken up under BOO/BOOT/BOLT, a package of incentives will be considered on a case to case basis.

  4. Separate industrial parks will be created in Wayanad and Idukki districts as part of a planned effort for the development of industries in these industrially backward districts and for taking full advantage of the recent notification of income tax holiday for industries in these districts.

  5. To provide adequate quantity of power to units set up in the industrial parks & growth centers, captive power plants will be commissioned and the park authorities allowed to distribute power directly to the units.

  6. Government will support local bodies in the creation of mini industrial estates and common facility centers for cluster-based activities and also in taking over the management of existing estates & facilities.

2. The Public Sector Industries

  1. The Central Public Sector Enterprises in Kerala are a major resource for the industrial development of the State. Government will work in co-operation with them in their expansion/diversification and seek their help in promoting private sector investments. Government will work towards these objectives in close co-operation with the Central Government.

  2. Every effort will be made to improve the performance of State Public Sector Units (PSUs) through modernisation, expansion, diversification, re-organisation, mergers, financial restructuring and all other possible ways. The real factors affecting their performance will be identified and the units will be strengthened financially, organizationally and technologically. The assistance of banks and financial institutions will be sought for this exercise.

  3. The State PSUs will be encouraged to work together by supplementing each others efforts. They along with KSIDC will be used as instruments for attracting private investments both domestic & foreign.

  4. Government will grant functional autonomy to PUSs through the implementation of performance Contracts System [MOUs]. The Board of Directors and Chief Executives will be accountable for performance. This accountability will percolate down to various levels in PSU management.

  5. Strengthening and professionalising management of PSUs and improving interfacing and monitoring mechanisms in Government will be undertaken as items of top priority.

  6. Professional scrutiny and appraisal of rehabilitation/investment proposal will be made mandatory to ensure that only viable projects get implemented and supported by the Government. A new entity will be set up to provide timely finance for viable projects and for the restructuring proposals of the public sector. The Public Sector Restructuring and Internal audit Board (RIAB) will be strengthened to perform its role more effectively.

3. Traditional Sector

  1. In the traditional sectors like coir, handloom, handicrafts, cashew, bamboo, tiles, etc. the emphasis will be on re-organisation and modernisation. Reduction of drudgery, better productivity and ensuring a decent wage to the workers are essential. The working environment also has to be improved and innovative products to be manufactured & marketed. For each of these sectors, strategies oriented towards the above goals will be worked out. The objective of Government intervention in this sector will be to make them self-supportive within a reasonable period of time. The Government will constitute committees in order to study the problems facing traditional industries and to suggest remedial measures for the revival of these industries. Appropriate action will be taken based on these reports. It is also necessary to ensure that the financial assistance provided by Government is utilized to the maximum and that such assistance reaches the genuine beneficiaries. For this purpose, the public sector undertakings and co-operative institutions working for the benefit of the workers in these industries will be strengthened, and if necessary, re-organized.

  2. Steps will be taken to popularize the use of coir-Geo-textiles and coir products at the national and international levels. Steps will also be taken for developing value added products from coir. Assistance will be given for installing new Ratts, de-fibering units and looms.

  3. Since development of cashew industry is dependent on the availability of raw cashew nuts, domestic production of cashew has to be increased. For this, efforts will be made to cultivate cashew in more areas with the participation of various Departments. Raw nuts will be procured from every possible source to provide maximum possible employment to workers.

  4. In the handloom sector, the marketing efforts will be intensified, and for this, the State level organisation for design, product development and marketing will be strengthened. Government will conduct a survey of the handloom societies and on the basis of the statistics collected thus, steps will be taken to assist deserving societies for their comprehensive development.

  5. Special efforts will be made to solve problems faced by th tile industry. The problem of non-availability of clay due to local objections to mining is sought to be removed by the formation of Panchayat level committees with popular participation.

  6. The potential of the State for sericulture activities has not been satisfactorily exploited. A definite strategy has been worked out to bring more area under mulberry cultivation and to enable more farmers to take up silk processing. The activities in this sector will be strengthened.

4. Information Technology

  1. Information Technology is an area in which the Government proposes to have a concerted effort for development. With computer applications multiplying, and Internet reaching every village, Kerala would become the ‘software valley’ of the country. A policy document on Information Technology (IT) has been brought out separately. The IT policy envisages the betterment of the standard of living of the people, especially the downtrodden. This will also help strengthen the decentralized planning and the modernisation & improvement of the efficiency of industries, including traditional industries.

5. Financial Assistance

  1. Credit
    1. The state level financial institutions, KSIDC & KFC will be further strengthened to provide adequate finance to industrial ventures.

    2. Efforts will be made to improve terms of lending to SSIs and for restoring their priority status with regard to working capital credits from nationalized banks.

  2. Factoring Services

    One of the major problems faced by Small Scale Industries is the delay in receipt of payments from customers. This is often true regarding outstanding payments from Government Departments & agencies, as well. Timely payment can often help avoid sickness. SIDCO will introduce a scheme, which shall enable discounting of such outstanding bills of government Departments and agencies and ensure prompt payment to suppliers. This will considerably help the SSIs in their working capital management.

  3. Incentives
    1. Investment Subsidy for thrust sector industries

      All new units, tiny, small, medium of large, included under thrust sectors (viz., Rubber based industries, Information Technology Agro-based business including food processing, Readymade garments, Tourism, Ayurvedic medicines, Mining, Marine products, Light engineering, Biotechnology & 100% EOUs) shall be eligible for investment subsidy at the rate of 15% of fixed capital investment subject to a ceiling of Rs. 15 lakhs, or as notified in the specific incentives announced for the sector, from time to time. The investment subsidy for Information Technology industries will be as per the IT policy announced by the Government. All thrust sector units set up in Idduki and Wayanad will enjoy an investment subsidy of 25% of fixed capital investment subject to maximum of Rs. 25 lakhs.

    2. Investment subsidy to certain other units

      All new units set-up in the State, except those in the negative list, as notified from time to time, will be provided investment subsidy at the rate of 10% of fixed capital investment subject to a ceiling of Rs. 5 lakhs. The ceiling will be Rs. 10 lakhs in respect of all units set up in Idukki, Wayanad and notified industrial areas like industrial growth centers and industrial parks.

    3. Investment subsidy to industrial units making new industrial investments under expansion/ diversification/ modernisation

      All industrial units undertaking expansion/diversification/ modernisation will also be eligible for investment subsidy at the rates and conditions given above for the additional investment made.

    4. Additional subsidy to special categories of entrepreneurs

      An additional investment subsidy of 5% of the value of fixed capital investment subject to a ceiling of Rs. 1 lakh will be offered for tiny and SSI units established by entrepreneurs belonging to the categories mentioned below: -

      1. Scheduled Castes & Scheduled Tribes
        1. Women

        2. Physically handicapped persons

        3. Ex-service men
    5. Generator Subsidy

    6. The present scale of subsidy for setting up captive generation units will continue as long as the difficult power situation prevails.

    7. Margin Money Loan Scheme
      1. The maximum amount of margin money provided to new industrial units set-up in the state under the margin money loan scheme shall be enhanced to Rs. 2.5 lakhs from the present Rs. 1 lakh. The interest rate for the margin money loan sanctioned under this revised scheme shall be reduced to 9% per annum.

      2. The scheme for providing Margin Money Loan to SSI units promoted by Non-Resident Keralites will be made more broad based to include all technically qualified Non-Resident Keralites and will be given a maximum margin money loan of Rs. 5 lakhs at the above mentioned interest rate.

    8. Tax and duty concessions

      All new industrial units will be exempted from sales tax for the first seven years, subject to a ceiling of 100% of fixed capital investment.

    9. Incentives for installation of equipment for utilization of renewable sources of energy/ pollution control devices in diesel generators.

      All industrial units, both new and existing, in the tiny and SSI sectors which install equipments for renewable sources of energy shall be eligible for an additional investment subsidy at 15% on such investment, subject to a maximum of Rs. 5 lakhs per unit, over and above the normal subsidies. Additional subsidy of 10% subject to a maximum of Rs. 25,000 will be provided for installation of pollution control devices in diesel generators.

6. Researches and Technology Development

  1. State level and district level Technical Consultancy Cells will be set up with a view to provide technology information to entrepreneurs. Especially in the small-scale sector. The state level cell will function at the Directorate of Industries & Commerce and shall have proper linkages with the district cells attached to the District Industries Centres.

  2. A corps fund will be formed to undertake & support Technology upgradation in the thrust sectors.

  3. Government will support the setting up of common facilities and testing laboratories in various sectors, in association with industry associations.

  4. In order to make funds available at a lower cost to thrust sector small scale industries undertaking technology upgradation & modernisation, Government will subsidies a portion of the interest of TDMF (Technology Development and Modernization Fund) scheme operated directly or through refinance by SIDBI. The subsidy will be provided for the first two years interest (after moratorium) subject to a maximum of Rs. 7.5 lakhs.

  5. The Government will encourage industrial units in achieving quality improvement and would subsidies efforts taken by units in this direction. All efforts for industry varsity co-operation will be encouraged by the Government.

  6. Private institutions engaged in industrial research and development will be encouraged by way of allotment of land in industrial areas at concessional rates. Concessions in sales tax on purchase of tools and equipments will also be considered. The Government will also support private institutions in establishing common facilities such as testing laboratories, tool rooms, prototype development centers etc., and institutes for specific disciplines related to industries.

7. Human Resources

  1. Human Resource Development is a priority item in the Government’s agenda. A high level committee consisting of members of the industry will be constituted to design appropriate curriculum and to provide necessary directions for a planned HRD initiative in the state.

  2. The Kerala Institute of Entrepreneurship Development (KIED) will be brought under the direct control of the State Government and strengthened to act as an agency for the overall planning, design and monitoring of various entrepreneurial programmes in the state. It will also develop training tools, standardize the quality of trainers by undertaking training for trainers and conduct refresher programmes for the personnel of the Industries Developemnt and the different promotional agencies.

8. Industrial Relations

  1. The right of managements to choose and deploy the employees as per the laws of the land will be protected. Government will take the initiative in promoting a new management and industrial culture in the State through continuous dialogues with the captains of the industry and trade unions. Participation of workmen in the management of production through statutory forums like works committees and informal instruments like quality circles will be encouraged and made more effective and meaningful as a matter of state policy, in all sectors of industry including SSI and traditional, public and private.

  2. For special zones like CEPZ, Industrial Parks and Growth Centres, special officers from labour administration will be deployed wherever warranted for the speedy resolution of industrial disputes in these areas.

  3. The Government proposes to set up Industrial Relations Committees in all industrial parks to ensure industrial peace.

  4. Wherever possible grass-root level machinery will be created with the help of local Governments, for resolving labour conflicts in the informal sector.

  5. Labour relation & labour welfare are closely interrelated and the Industries and the Labour Departments will work together with the objective of ensuring healthy industrial peace.

9. Re-engineering the System

  1. A high level committee chaired by the Chief Minister will be constituted with Minister [Industries], Minister [Power], Minister [Finance], Minister [Labour], Chief Secretary, and other concerned officers as members to consider and clear all projects with investment more than Rs 50 crores. Where inter-departmental issues are to be sorted out.

  2. The systems of granting clearances by various departments will be reviewed, simplified and made more transparent with the help of democratic decentralization of administration.

  3. Government also proposes to endow the authorities of industrial parks with adequate powers so that they can undertake the creation of adequate infrastructure, provide single window clearances and promote the park/township among entrepreneurs.

  4. Necessary steps have already been taken to simplify rules & procedures regarding land allotment to industries. Appropriate mechanism will be created to overcome the present problems in acquiring land for industrial use.

  5. Individual units in industrial parks/growth centers will be declared exempt from local body licenses and from the provisions of the Kerala Building Rules.

  6. All the industrial promotion organisations (Directorate of Industries & Commerce and District Industries Centres, KSIDC, KFC, KINFRA, Kerala Bureau of Industrial Promotion, SIDCO, etc.) would streamline procedures and obtain ISO certification in three years.

10. Information

  1. An ambitious programme of computerizing and networking the Directorate of Industries & Commerce and the District Industries Centres (DICs) is currently under implementation. Computerizations at the district level is being undertaken with a view to acquire information pertaining to SSI registration, PMRY programmes and other schemes being implemented in the district on a perpetual basis. The networking of the districts with the nodal cell at the Directorate will aid the delivery mechanism of information and other technical support services offered by the Directorate and the District Industries Centres.

  2. Guidance & Monitoring Windows will be created in District Industries Centres to help entrepreneurs get all the assistance required for setting up and sustaining an industry. The window will be manned by representatives from reputed consultancy organizations in addition to the personnel in the DIC.

  3. Government will take effective measures to maintain computerized databases of the industrial activities in the State. Steps will also be taken for the creation of databases of project ideas & profiles and market information. A technology repository will also be made in association with R&D institutes and national level agencies. These data banks will be made available to the entrepreneurs utilizing the computer network linking the District Industries Centres.

11. Industrial Promotion

  1. A well-designed marketing strategy will be employed to market Kerala as an investor-friendly state, with a view to attract domestic & foreign investments into the State. Active co-operation and participation of Government agencies, Entrepreneurs, Trade Unions, NRI organisations etc., will be sought for carrying out this task successfully.

  2. A State Level nucleus cell of officers from all the industrial promotion agencies will be constituted with the Secretary (Industries) as Chairman and Director of Industries & Commerce as Convenor to co-ordinate & undertake industrial promotion activities in a planned & scientific manner.

  3. The liaison office in Delhi would be strengthened and a new office started in Bombay. These offices will undertake proactive promotion of Kerala as an industrial destination and will act as the first contact point for prospective entrepreneurs. They would also be used to channelise central investment, tap international development funds and co-ordinate with the India Investment Centre.

  4. Arrangements will be made with various Malayalee Associations in metros and major industrial centers around the world to function as information dissemination outlets with a view to attract investments. All efforts will be taken to attract NRI investors into the State.

  5. Government proposes to make use of the state-of-the-art Internet facility to market the products manufactured in Kerala especially those in the traditional sector and also to provide information on the industrial sector, especially to NRIs.

12. Marketing

Government will assist industrial units in marketing units in marketing their products, through their co-operative ventures especially to units in the small, tiny, traditional & handicrafts sectors. The following steps will be undertaken by the Government in this regard:

  1. Rules pertaining to Price Preference and carnet money deposit will be streamlined and their enforcement made more effective. To this effect, comprehensive details of products that can be sources from the small scale sector to the large & medium scale sectors will be documented.

  2. Extensive marketing network will be organized in urban areas and district headquarters with the help of Central Government and Women’s Development Corporation. These marketing centers will be expanded with the support of local bodies.
  3. The marketing effort of SIDCO will be substantially developed.

13. Export Promotion

With the opening up of the markets, our industries will have to be prepared for international competitiveness. Government will encourage industries to access international markets. The State Government proposes the following measures:

  1. KEREXIL will be the nodal agency for export promotion activities. Full-fledged air cargo complexes will be set up at all the airports by KSIE to facilitate export. The marketing system of SIDCO will be strengthened and along with KEREXIL, it will endeavour for promoting export.
  2. Participation in International trade fairs

    KEREXIL will assist the local Small Scale Industries as well as State Public Sector Undertakings to participate in international trade fairs in India and aboard. The agency will prepare a calendar for participation in fairs and intimate the industries associations as well as units with potential for export. KEREXIL will reserve space in such fairs and provide it to industries either free or at subsidized rate.

  3. Equity in Export oriented companies.

    The Export Promotion Industrial Park, Kochi, developed by KINFRA is ready for allotment. In respect of export promotion units set up there by technocrafts, KINFRA will convert part of the cost of land as equity, in cases where seed capital or margin money is not available fro other agencies. Similar assistance will be provided to deserving units set up in industrial growth centers and other industrial parks.

14. Special Programmes for Women

  1. Government proposes to introduce a new scheme called "Koottu Kudumba Samrambham". A group of not less than five individual house hold industrial units in the same sector run by women entrepreneurs, in a Gram panchayat can collectively avail this scheme by forming a group, which may then be considered as a Mother unit. In addition to any of all incentives available to the individual units, the following benefits can be availed by the society, on the recommendation of the Grama Panchayat concerned.
    1. 15% of the expenses incurred on setting up of any common facility including equipment for quality testing and packaging, display counters, etc. subject to a maximum of Rs. 5 lakhs.
    2. Rs. 10,000 for the preliminary expenses including expenses incurred for the setting up of the setting up of the society, common branding, printing of common labels and other initial common marketing efforts.
    3. Tapering grant for four years for the salary of manager/expert and for rent at Rs. 750 per month each at the existing tapering schedule followed Women’s Industries Programme (WIP).
    4. Individual households will be allowed to use domestic connections for commodity production where the connected load is less than 3KV.

  2. The Women’s Industries Programme (WIP) will be restructured with a view to ensuring maximum participation of women in the industrial development of the state and to encourage them to proceed towards non-traditional areas of operation. The following enhancements with respect to financial concessions will be provided:

    1. Building grant enhanced up to a maximum of Rs. 50,000.
    2. Machinery & Equipment grant enhanced to a maximum of Rs. 75.000.
    3. Tapering grant for four years for salary of manager/expert and rent enhanced to Rs. 750 per month each at the existing tapering schedule.
    4. Stipend to training enhanced to Rs. 500 per month.

  3. The Women’s Industrial Co-operatives in the State are presently given six times their paid up share capital subject to a maximum of Rs. 2.5 lakhs. Government intends to enhance this upper limit to Rs. 3.5 lakhs.

15. Rehabilitation of Sick Industries

  1. Government has already taken steps to set up professional groups at the district level to provide necessary assistance to sick units. The specialized terms will survey individual sick units, suggest appropriate measures for revitalizing them and will help in preparing feasible revival project reports and provide them with necessary marketing support.

  2. A high power sick unit monitoring cell will function in the Directorate of Industries & Commerce, under the Director to keep track of the rehabilitation work undertaken in the State. The cell will appraise the State Industrial Development Committee quarterly.

  3. The status of rehabilitation will be closely monitored by the General Managers of the District Industries Centres, who will also forward a status report to the sick Unit monitoring Cell at the Directorate of Industries & Commerce every month.

16. Involvement of local bodies

  1. In tune with the ongoing process of democratic decentralization, the Government proposes to revitalize the Industrial Development Committees [IDCs] at the district level and will take steps to make them broad based by including representatives of local bodies. The Government also proposes to establish IPCs [industrial Promotion Committee] at the Grama Panchayat level, with the Grama panchayat President as Chairman and Grama Panchayat Secretay as Convenor.

  2. The District Industrial Development Committees will visualize and monitor the industrial development activities of the district, identify potential sectors/clusters and will formulate the specific industrial development activities of the District Panchayat. The District Industries Centres will provide necessary technical guidance in this respect.

  3. The IPCs will take a lead role in channelising the products of their region to identified markets and will aid marketing efforts of SSIs, especially those promoted by women. The linkages of IPCs with the District Industries Centre and Directorate will be used to disseminate vital trade and technology related information to people in the Panchyat.

  4. The IPCs will be supported for creating a repository of project reports, project profiles, etc. The IPCs will closely interact with the State and district technical consultancy cells.

17. Feedback mechanism

A Policy progress Evaluation & Review Team (PERT) will be formed with the Secretary [Industries] as convenor, to review the implementation of the policy and to provide necessary feedback to the Government so that appropriate interventions can be resorted to by the Government form time to time. The annual review of the progress of implemtntation of industrial policy and achievements will be prepared by PERT for consideration of the Minister for Industries and the Council of Ministers.


A policy statement is not an end in itself. A realistic assessment of the dynamic environment would prompt modified interventional strategies from time to time. The strategy has to focus on the twin aspects of building on the strengths and rectifying the weaknesses. Keeping in view these factors, Government had formulated this policy interweaving our human resources and other available material resources for ensuring sustainable growth and providing a solution to the burning problems confronting our State. With this policy as the basis and by enlisting the co-operation of the workers and the management along with a dynamic & pragmatic leadership our State & its people would be able to meet the challenges of the next millennium.