The PHD Chamber of Commerce and Industry has called for a review of the Rajasthan Investment Promotion Scheme 2010 and sought renewed focus on infrastructure, Micro Small and Medium Enterprises, tourism, agro processing zones, solar and wind energy and faster allocation of land for industrial projects to ensure all round development of the state.
RIPS 2010 is a state government package of financial incentives and subsidies aimed at stimulating private sector investments.
According to the multi state trade and industry body, focusing on the suggested areas would not only accelerate manufacturing and lead to more employment opportunities but also increase the industrial sector’s contribution to the state’s GDP to over 35 percent in the next few years from the current 27 percent.
Rajasthan, with its proximity to Delhi and Gurgaon, is strategically located. The location works to the state’s advantage in facilitating inflow of capital.
The Chamber said the Rajasthan State Industrial Development and Investment Corporation Limited was already working towards a better industrial and investment climate and if proactive policies were put in place, the state could outshine others in the region in terms of domestic and foreign capital inflow.
It pointed out that there was huge scope for attracting investments to develop infrastructure projects such as hotels, sports complexes and universities under the Public Private Partnership model and also foreign joint ventures which in turn would create many job opportunities in the state for the skilled, semiskilled and unskilled workforce.
Stressing that due importance needed to be given to the MSME sector, the Chamber said the focus should not be concentrated on large industries alone.
With regard to the tourism sector, it said the state could be developed as the country’s tourism hub given its large number of heritage sites.
The Chamber called for giving priority to setting up of agro processing zones since the state had certain strengths in the area.
On the renewable energy front, it said that solar and wind energy based industries would not only benefit the state but the whole country. The state government had subsidized setting up of solar power plants but many applications were still pending with the Rajasthan Renewable Energy Corporation Limited, the Chamber claimed. The desert state has huge solar energy potential with 1.5 lakh MW energy yet to be tapped. The state’s gross wind energy potential has been estimated at 5,400 MW.
On the issue of allocation of land for industrial projects, the Chamber said the process needed to be expedited with easier terms and conditions. It asked the state to take advantage of the economic spill over from Delhi/NCR that was taking place due to space constraints and high costs.