22, a day after India secured a much N JUNE publicised record for holding the largest Yoga session led by the prime minister, headlines across the country reported another record.Telangana cleared 17 investment proposals worth 1,500 crore within 10 days of application. This was the fastest approval, true to the state government’s promise under its new industrial policy declared just 10 days earlier.
Chief Minister K Chandrashekara Rao released the policy, Telangana State Industrial Project Approval and Self-Certification System (ts-ipass), on June 12. This is the first policy document from India’s newest state and has everything to make Telangana the world’s most investment-friendly state.The policy, formulated a year ago, was enacted into law in November 2014.Just before its official release this year,full-page newspaper advertisements depicted a Telangana platter with all incentives for industries as the right recipe for garnering investment. By 2020,the state expects to attract an investment of
5 lakh crore.To make sense of this figure, the state’s gdp in 2014-15 was 4 lakh crore.
ts-ipass mandates that permissions and licences will be given within 15 days for big projects, and if no decision is taken during this period then the permission will be deemed to have been given. The icing on the cake is the right to get clearance of projects within a set time limit. Under ts-ipass, all the proposals for mega projects—with an investment of over 200 crore—have to be cleared within 15 days, while other projects will have to be approved in a month.Allocation of various resources has been exhaustively elaborated in the policy note. What’s more, the new state promises to amend laws that hamper investments.
It offers a land bank of nearly a million hectares and 10 per cent water allocation from all sources for industrial use. The new policy also promises “minimum inspection, maximum facilitation”, under which the state’s regulatory checks and balances have been diluted to a great extent (see ‘Recipe for disaster?’ p28). Now an industrial unit will be informed about an inspection much in advance.The policy note opens with this as the first objective: “Minimum inspection would encompass a system of no random inspections without cause.Subject to statutory requirements, the departments will develop a system where each industrial unit is inspected only once in 3/4 years and the cycle of inspections is to be fixed in advance. Maximum Facilitation would encompass an effective
Failed cotton crops and heavy debts have forced Telangana farmers, like this one in Chotuppal in Nalgonda district, to sell agricultural land and pave
way for industries