Development of quality infrastructure including power, roads, airports and industrial towns,  land availability, development of industrial parks with minimal role of incentives , setting up of Manufacturing Investment Regions(MIR), exemption from electricity duty ,incentives scheme for mega projects, Industrial promotion subsidy, cluster development, simplification of rules and regulations with a nodal agency for clearances, employment creation and skill development are some of the important suggestions made by PHD Chamber of Commerce to take industrial development forward in most of the laggard  Northern Indian and Central Indian states which are all in the process of revising their industrial policies to revv up their industrial production which has been badly effected by the global financial crisis resulting in just 2.4 % of industrial growth.

The states shall have to provide best of governance and favourable industrial environment to achieve 9.8 % industrial growth announced in the 11 plan

As a rising tide raises all boats, industrial development in the states shall lead to higher growth with its backward and forward linkages . PHD Chamber is holding a high level conference of state secretaries, industries and commerce on July 24, Friday where secretaries and officials from Delhi, MP, Punjab, Rajasthan, Chattisgarh, UP, HP, J & K, Uttarakhand as well as Mr. Ajay Shankar, Secretary, DIPP, GOI. will be addressing . PHD Chamber has prepared a ‘model policy of industrial development’ for consideration by states.

PHD Chamber has suggested specific suggestions, the foremost of which is development of quality infrastructure including power, water, roads, airports and industrial towns which is crucial for sustainability of industrial growth and shall be the best incentive, rather a substitute to attract investments in a State.   In China because of regular power availability at a lower cost, production cost is lower by at least 10% compared to India. 

Continuation of power sector reforms and implementing the enabling provisions of Electricity Act 2003 as well as making Open Access mandatory are some of the other key challenges. Dedicated transmission system for supplying power to units in industrial clusters and Manufacturing Investment Regions should be set up.

According to Mr. Ravi Wig, Chairman, NRD Council, PHD Chamber, “The best of infrastructure accompanied by minimum of incentives and excellent governance shall be appropriate model for attracting investment.