A recent news item regarding the investment of ₹ 8,000-plus crore in Assam by a couple of cement companies and a leading FMCG company, among others, in the weeks and months to come augur well and furthers the sentiment of feel-good factor at a time when the present Government celebrates its second year in office.
Ever since this Government assumed charge in Dispur, its focus has been on development and growth. I distinctly remember that Chief Minister Dr. Himanta Biswa Sarma met private and public sector representatives last year wherein proposals worth ₹ 90,000-odd cr were chalked out. These are positive developments, but for Assam to catch up with other States of the country which are attracting domestic investment and FDIs, a multi-pronged approach is called for.
Having had considerable experience as an industrialist, I venture to list out steps and areas which, I feel, will make it easier for the State to forge ahead.
To begin with, a status paper, if not a white paper, on the ground realities of industrialisation covering the number of industries – category wise (micro, small, medium, and large scale) and details from the organised sector as well as unorganised sector, the number of employees engaged, connected power load, location, investment made and subsidies received by them (capital and operational), etc.
Data are one of the areas of concern for those in the North East. Hence, based on the steps outlined above, the Central as well the State Governments need to come out with industrial policies which should be supplementing and complementing each other without duplicity, and free from ambiguities and loopholes.
As a former Finer president for about 10 years, I had been advocating that a new policy, on the line of NEIIPP 2007, be announced forthwith for a period of seven years (with no more extensions) and then implemented in letter and spirit, without any knee jerk reactions (arbitrary amendment, tinkering & dilutions, etc.) A consultative approach vis-a-vis industry associations/experts views, while framing the draft policy, must be taken.
Availability of land and that, too, in quick time free of any encumbrance, particularly for MSME units at concessional rates or on long-term lease at concessional lease rentals to those who want to set up/run their industries is of utmost priority. The State Government needs to set up industrial sheds or growth centres to offer developed pieces of industrial land to attract quality and speedier investment. As an extension of my argument, it is very important to get CPSUs to invest. This would ensure industrialisation of the right type thereby leading to the setting up of ancillary units (setting up of MSMEs to cater to the need of these CPSUs/state undertakings) creating much-needed sustainability to take on “fly-by-night investors”. Investment in the defence sector through a defence corridor/special purpose vehicles for the purpose could also prove to be a game changer.
The cornerstone of any industrial policy must be on generating employment. This allows any Government to justify subsidies accorded to these units for greater good. Yet, a flexible labour policy with a humane touch must be put in place.
Government must ensure the availability of quality power at affordable rates, particularly to the MSMEs. The per unit rate must be that which is applicable to the agriculture sector. It is only when investors realise that land, power, and manpower together with a congenial environment are available in quantity and quality that they will make a beeline to invest. Let us remember that investors have options; hence a State must ensure that it is prioritised by them. The motto should be: Give them an offer they cannot refuse. It is also important to create an atmosphere that they are attracted to. A society where investors are looked up to is one that will reap the rewards.
There will be times when a Public-Private Partnership will be a preferred route of investment by stakeholders. For such an eventuality, it is incumbent on the Government to frame a policy where the existing guidelines may be made more investment friendly by reposing faith in the management skills of the private sector with the Government taking the back seat and playing the role of a facilitator or sheet anchor.
Amid all the gung-ho about industry, we must not lose sight of the fact that our service sector has enormous potential, as has been proven over the years. Any Government would do well if the sector is harnessed with sustainable investment.
There are other micro steps which the State Government needs to put in place for industry to come up in a big way. We must work earnestly and take bold steps for “Ease of Doing Business”.
Needless to mention, these will ensure that the Chief Minister’s vision of putting Assam among the top five States in the country become a reality and the vision of a “Vikasit Asom” is realised. If there are short term pains in the entire exercise, Dispur must be willing to take it, for they will bring in long term dividends.
