Announcing the new industrial policy on Thursday at the PHDCCI House in the Capital, chief minister Kalyan Singh said, "The objective of these schemes is to give an opportunity to the industry to stabilise in the most sensitive initial years and generate adequate liquidity to reach a level of stabilisation."

Under the Laghu Udyog Poshan Yojana, the state financial institutions will provide cheaper loans. Some part of the interest will be deferred in the initial years to be charged later.

A new cluster scheme for small industries will also be launched in some selected industrial areas near urban centres to ensure viability. On the whole, the state government will concentrate on seven industrialcorridors.

Though the government claims to be committed to a balanced development of all the regions, emphasis continues to be on areas in the National Capital Region like Noida, Greater Noida and Ghaziabad. "But, as a conscious measure, we have also identified two corridors in eastern UP -- Allahabad-Bhadohi-Varanasi-Mirzapur and Gorakhpur-Basti-Deoria," said Yogendra Narain, chief secretary, UP government, while speaking to FE Enterprise.

Since eastern UP is rich in agriculture produce and water resources, agro-based industries will be encouraged in this region. Engineering goods industry are already there around Varanasi.

However, A P Verma, principal secretary (industries), UP government, admitted that industry is being promoted more earnestly in western UP. "Though we remain committed to a balanced development of the state, economic logic directs more industries to regions which have better infrastructure and business opportunities." Among the major decisions taken by the BJP government to helpinter-state business, trade tax check posts will be abolished from April 1, 1999. This has come as a big relief to businessmen. Says L K Khaitan, chairman, UP committee, PHDCCI, "Businessmen were facing undue harassment at the check posts, and goods were being delayed." Form-31 will be distributed through industrial associations.

Effort has also been made to end the age-old scourge of the small industry-that is, inspectors raj. It has been provided that no inspector of any department will enter any factory premises without the prior approval of the district magistrate. Singh says that the government wants to convert the entire inspector system into an ameliorative and facilitative one.

For dealing with redtapism and administrative bottlenecks, a new system for time-bound sanctions of clearances has been introduced. All clearances will be made available to entrepreneur through the district industries centre (DIC). "This is a major departure from the earlier system in which the entrepreneur had to visitnearly 30 offices in various cities to start an industry," says Singh. The DIC will provide this facility to industries with investment up to Rs 25 crore. In case of industries above Rs 25 crore, EOUs and NRI investment, this single-table facility will be provided by the state-level Udyog Bandhu. UP resident commissioner in Delhi will function as NRI commissioner for the state.

In order to upgrade the technology available to the small sector in the state, the government will also launch a technology mission for 10 specific segments of the small and village industry. These include leather, glass, brass, sport goods, lock and agro-based industries. A high-level task force has been set up to review labour laws.

For helping small industry in marketing, the state government has also promised equity participation in private marketing companies. A special role for the district industrial centres has also been envisaged. They will be involved in accessing industry information especially that related to technologyand creating linkages with new markets.

As far as purchases by the state government and its undertakings are concerned, the Uttar Pradesh government has promised a stable price and quantity preference policy. "The present system of extension of the policy on year-to-year basis has been replaced by a five-year facility so that the industry is assured of government purchases for a relatively stable period and hence is able to concentrate on productive work rather than being saddled with uncertainty," observed the policy document.

The Infrastructure Initiative Fund and the Road Development Fund have been planned to address civic problems. The state government will announce a detailed road policy on Friday.

The government plans to tackle the law and order problem, which is behind a number of units closing down in the NCR region.

To celebrate its one year in office, the BJP government has proclaimed with much fanfare that it is targeting a 25 per cent share of industries in the state's GDP from 20 per centat present. The seriousness of the efforts can be rated only if the government is able to take the promised time-bound action in 30 days and issue all relevant government orders within 60 days.UP on the web

If you can't get them on the ground, catch them on the net. In the race to go hi-tech with a net presence, UP chief minister Kalyan Singh has launched his government's official website, www.upindia.com to mark one year of BJP rule in the state.

The site containing a total of 202 pages has 168 pages devoted to industry. According to A P Verma, principal secretary, (industries), the site contains information to attract potential investors.

To provide opportunities in information technology, the government is developing a hi-tech city in Noida and an electronic city at Agra. Software technology parks will be set up in Agra, Noida, Dehradun, Lucknow and Varanasi. "The Centre has also agreed to set up a National Institute of Information Technology at Kanpur on the lines of IITs and IIMs," saysYogendra Narain, chief secretary, Government of Uttar Pradesh.

The website provides an exhaustive list of all industrial locations and the names of the main industrial units. Details regarding sectoral policies and incentives to promote investment are also available on the site. A total of 103 schemes where investment is possible has been identified. Verma feels that the site will help to a great extent in attracting investments from other states. "We have launched the site with an intention of spreading knowledge about the opportunities available."

Keeping pace with the growing realisation about the importance of proper marketing behind the success of a venture, the website has a page exclusively to help enterprises to market their products. An element of interaction has also been introduced by reserving a page for comments .According to Sangeeta Sawhney of Span Infotech, the company which designed and hosted the website, the project was completed in a span of four months. "Majority of the informationabout the content was provided by Udyog Bandhu." The company is also responsible for updating the site. "Even while preparing the site, we have engaged in this exercise. We plan to update the site every two-three months."Highlights