Large Industries |
Industrial units having investment exceeding Rs. 10 crore in plant and machinery are classified as large industrial units. An Entrepreneur or a company desirous to set up a large project needs an approval in the form of industrial licence from Government of India (GOI) under the provisions of Industries (Development and Regulations) Act, 1951. In July 1991, Government of India liberalized the licensing procedure and exempted almost all the industries from the purview of industrial licensing, except a few industries which are of strategic importance. As per the present licensing procedure, only two industries are reserved for public sector and four industries, which are of strategic importance, need an industrial licence. The rest of industries are required to file Industrial Entrepreneur’s Memorandum (IEM) with Secretariat for Industrial Approval, Ministry of Commerce & Industry, Government of India, on observing certain requirements with respect to location and environment. In the case of setting up of an Export Oriented Unit (EOU) or setting up a project in Special Economic Zone (SEZ), a Letter of Permission (LoP) is required to be obtained from the Development Commissioner of the concerned SEZ. Thus, the procedure for setting up a large industrial unit would be either filing of IEM, obtaining Letter of Intent (LOI)/ Industrial Licence or obtaining Letter of Permission (LoP) in the case of 100% EOU or SEZ unit.
The filing of IEM with Secretariat of Industrial Approvals (SIA), GoI is considered as an important parameter to assess the degree of industrial development in a state. The details of IEMs filed for Gujarat since the introduction of liberalization process in August 1991 till the recent time are as follows: |
Progress of IEMs - Gujarat & other states
August 1991 to Nov 2009
| State/UTs |
No. of Projects |
% Share |
Proposed Investment (Rs.Cr) |
% Share |
| Orissa |
1424 |
1.79 |
718542 |
12.83 |
| Chhattisgarh |
2486 |
3.12 |
741766 |
13.24 |
| Gujarat |
9324 |
11.72 |
701599 |
12.52 |
| Maharashtra |
14354 |
18.04 |
543939 |
9.71 |
| Andhra Pradesh |
5837 |
7.34 |
476195 |
8.50 |
| Karnataka |
3320 |
4.17 |
425038 |
7.59 |
| Jharkhand |
962 |
1.21 |
385106 |
6.87 |
| Madhya Pradesh |
3149 |
3.96 |
351085 |
6.27 |
| West Bengal |
4521 |
5.68 |
289741 |
5.17 |
| Tamil Nadu |
6783 |
8.53 |
236750 |
4.23 |
| Other States |
27403 |
34.44 |
732058 |
13.07 |
| All India |
79563 |
100.00 |
5601819 |
100.00 |
As may be observed from the above table, 9,324 IEMs having an aggregate investment of Rs. 7,01,599 crore have been acknowledged for locations in Gujarat. In addition, the state has also received 467 Letters of Intent entailing an investment of Rs. 23,404 crore, over the same period. For setting up 100%
EOUs, the state had also received 1575 Letters of Permission involving an investment of Rs.8038 crore. The Government has put in place an effective mechanism for monitoring of all the industrial approvals, in order to know the status of these approvals and provide effective intervention in the speedy implementation of these projects.
Of these approvals, as on 30th Nov. 2009, 5356 projects with an investment of Rs.1,66,890 crore have been implemented. In addition, 2371 projects having investment of Rs. 4,35,309 crore are at various stages of implementation.
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