| 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 from Government of India (GOI) under the Industries (Development and Regulations) Act. In July 1991, GOI liberalized the licensing procedure and exempted almost all industries from taking industrial license, except few industries which are of strategic importance. As per the present licensing procedure, only two industries are reserved for the public sector and four industries, which are of strategic importance, need an industrial license. The remaining industries are required to file Industrial Entrepreneur Memorandum (IEM) with GOI, on observing certain requirements with respect to location and environment. In case of setting up an Export Oriented unit or setting up a project in Special Economic Zone (SEZ), a Letter of Permission (LoP) is to be obtained from the Development Commissioner (SEZs). Thus, the procedure for starting a large industrial unit needs either filing of IEM, obtaining Letter of Intent (LOI)/ Industrial License or obtaining Letter of Permission (LoP) for 100% EOU or SEZ unit. |
The filing of IEM with the Secretariat of Industrial Approvals (SIA), GoI is considered as an important parameter to know the level of industrial development in a state. The number of IEMs filed for Gujarat since the introduction of liberalization process in August 1991 till date is given as under:
Progress of IEMs - Gujarat & other states
August 1991 to September 2007
State |
IEM Nos |
Investment
(In Rs. Crore) |
Gujarat |
8,529 |
4,47,130 |
% share |
11.92 |
15.03 |
MAHARASHTRA |
12,975 |
3,71,068 |
% |
18.13 |
12.48 |
Chhatisgarh |
1,880 |
3,61,699 |
% |
2.83 |
12.16 |
Orissa |
1148 |
2,50,782 |
% |
1.60 |
8.43 |
ANDHRA PRADESH |
5092 |
2,33,192 |
% |
7.11 |
7.84 |
KARNATAKA |
2,926 |
1,96,662 |
% |
4.09 |
6.61 |
UTTAR PRADESH |
6,230 |
1,61,394 |
% |
8.70 |
5.43 |
TAMIL NADU |
6,216 |
1,59,771 |
% |
8.68 |
5.37 |
Jharkhand |
821 |
1,63,475 |
% |
1.15 |
5.50 |
All India |
77,574 |
29,73,932 |
As observed above, Gujarat has received 8529 IEMs having investment of Rs. 4,47,130 crore. In addition, the state has received large number of LoIs i.e. Letter of Intent and Letter of Permissions (LoPs) for 100% EOUs. The state has put in place an effective system for monitoring of industrial approvals, in order to know the status of these approvals and provide assistance in the implementation of these projects.
As on Oct. 2007, 5075 projects with an investment of Rs.1,45,407 crore have been implemented. In addition, 1909 projects having investment of Rs. 2,01,420 crore are at various states of implementation. |
