LUCKNOW: After three years of functioning without an industrial policy in the state, the Uttar Pradesh government is ready with its new draft Industrial and Service Sector Investment Policy (ISSIP) for 2012. Currently open to consultations with industry stakeholders, the policy, in its new avatar, aims to clock an industrial growth of 10%, create 25 lakh new jobs annually, ensure equal development of all regions of the state and make UP the most sought-after investment destination in the country. Infrastructure and industrial commissioner, Anil Kumar Gupta, said: "The first draft of the policy is ready and has been circulated among stakeholders for feedback. Once this is complete, changes will be incorporated and the final policy sent for approval from the Chief Minister and the state cabinet.'' Emphasising integrated development, the new policy document lays emphasis on partnering with the private sector for accelerated growth. From inviting private players to set up industrial estates on UP soil, the new industrial policy, in a significant departure from its 2004 avatar, also proposes to allow private industrial estates to come up in all sectors. More private investment is also proposed in the transport sector, with emphasis on starting eco-friendly metro rail or rapid mass transport systems wherever feasible. There's good news, also, for the battered micro and small scale industries in UP. Struggling to remain viable for years, ISSIP 2012 will extend the facility of interest free loans against VAT and CST reimbursements to small scale enterprises. For the MSME sector as a whole, a concerted purchase policy - where at least 30% purchases are made from micro, small and medium enterprises, will also be put in place. For developing the micro and small enterprises, particularly in the handicrafts sector, the state government has decided to follow a cluster-based approach, where facilities of management, quality control, industry, packaging, designing and distribution will be provided, collectively, to all units. Apart from preparing a revival plan for sick industrial units, UP will also, as part of the ISSIP, get a detailed exit policy for closed and unviable industrial units for the first time. Senior Manager Finance, Udyog Bandhu, S K Singh, said: "This move is expected to help unviable businesses to make an exit. At the same time, it will open up space for new and upcoming businesses in the state." To strengthen the state's commercial facilities, the 2012 ISSIP also proposes to encourage more connector depots, integrated transport-cum-commercial centres, convenience stores in private areas, setting up new trade centres and organising international trade fairs to boost the state's industrial products. In keeping with the Twelfth Manufacturing Plan for India, the state government has also proposed three manufacturing zones of 5,000 hectares each in Bundelkhand, Purvanchal and the proposed Delhi-Mumbai Industrial Corridor (DMIC). Governed by Central government norms, the manufacturing zones will be equipped with have state-of-the art facilities, including captive power plants. There's more for the lesser developed regions of the state. New industries or those seeking to expand their businesses in Bundelkhand or Purvanchal will be granted a 100% exemption from stamp duty; units will also be exempt from paying entry tax for 15 years if they set up shop in Bundelkhand or Purvanchal. The industrial policy also proposes to build on the state's agro-processing potential; food processing units that make a capital investment of Rs 5 crore or more will enjoy Mandi tax and development cess waiver. In the power sector, ISSIP 2012 has proposed uninterrupted supply to industrial zones; granting industrial feeder status to all 33/11 KV sub-centres where feeders have more than 75% industrial load. Such sub-centres, the policy proposes, will not face any power cuts. Private investments will also be encouraged in the service sector, with no objection certificates being issued to more private players who seek to run hospitals, educational institutes, call centres, multiplexes, cinemas, shopping malls and entertainment sectors. Within the service sector, ISSIP proposes stamp duty waivers to multi facility hospitals with more than 100 beds, super specialty hospitals and technical and IT training institutes at development block headquarters where at least 75 students have been trained, among others. What ISSIP 2012 will do: Invite private investment in IT, food processing, biotechnology and solar energy. Government to act as facilitator Dedicated freight corridor and logistics hub on the Delhi-Mumbai Industrial Corridor Disinvestment of loss-making tourist guest houses in the tourism sector and their privatisation Cluster development in the handicraft zones. State assistance to small scale industries for obtaining BIS certification Detailed exit policy for the sick units