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Policies & Approvals
The Industrial Policy Resolution of 1956 and the Statement on Industrial Policy of 1991 provide the basic framework for the overall industrial policy of the Government of India The industrial policy announced on 24th July, 1991 substantially dispensed with licensing, announced measures facilitating foreign investment and technology transfers, and threw open the areas earlier reserved for the public sector.
Keeping in mind the new Economic Policy, West Bengal formulated its Industrial Policy Resolution in 1994 with a view to secure faster and balanced economic development with the active cooperation of the private sector. The key features of West Bengal's present industrial policy are as follows:

Appropriate foreign technology and investment are welcomed on mutually advantageous terms.

The Government recognizes the importance and key role of Private, Public & Joint sectors in providing accelerated growth and in improvement and upgradation of industrial as well as social infrastructure.

Based upon the available opportunities and the potential of this region, the State Govt, has identified certain segments of industries as thrust areas for special attention viz.
Petro-chemicals & Downstream Industries
Electronics & Information Technology
Iron & Steel, Metallurgical and Engineering
Leather and Leather Products
Food Processing, Edible Oil, Vegetable
Processing and Aquaculture
Development of Medicinal plants, Rubber, Palm oil and Tea
Manufacture of basic drugs, chemicals and pharmaceuticals
Optimal utilization of minerals and development of mine based industries
Gems and Jewellery
Promotion of Tourism and Tourism related activities
Keeping in mind the recent surge in entrepreneurs interest to set up industry in the State, the government is drawing up a comprehensive document on its approach to industrialization considering matters such as location policy for industries, areas of development and focus, needs for remote connectivity and meeting the challenges of industrialization without harming farm growth.
In addition, West Bengal has framed marketing policies for SMEs which include price preference in purchases; exemption from payments of Earnest money; distribution of products through the public distribution system; construction and development of industrial estates, plots, commercial and trade offices; extension of credit support through the West Bengal Financial Corporation, State Cooperative Banks and Commercial Banks; and eligibility to incentives as provided under the West Bengal Incentive Scheme.

The State Government is actively promoting micro and small industries in areas of handicrafts, handlooms, textiles, sericulture, khadi and village industries. The Department of Cottage and Small-scale Industries, its Directorates and Corporations are actively engaged in realizing the policy objectives of GoWB, which aims to promote rapid development of SMEs. Over 314,000 registered small enterprises are in existence in the state employing around 2 million people. The policy adopted involves a multi pronged strategy comprising of a mix of institutional, marketing and infrastructure support, which can help the sector to sustain and gain growth momentum.

The Government of India, keeping in mind the interests of this sector, has recently enacted "The Micro, Small and Medium Enterprises Development Act, 2006 (SMED)" with the objective of promoting, developing and enhancing the competitiveness of small and medium industries. The Act also includes interest and penal provisions for delayed payments to such enterprises by the buyers. The Gol is also coming out with a promotional package of measures for the SME sector which include development of more clusters, preferential treatment for women entrepreneurs, technology up gradation and energy efficiency, capacity building and building forward as well as backward linkages for the clusters.
© 2006, WBIDC
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