Plan to raise foreign investment


The government is considering a single window clearance scheme to attract foreign investors. There is a lot of enthusiasm among investors too. About half a dozen foreign investors said that they are talking to the government about it. These investors will also be provided with pre-identified land for setting up a manufacturing unit. Such land may be available in at least 20 states. Government officials said the scheme would be implemented at the beginning of the next financial year.

A senior government official familiar with the matter said, ‘The single window clearance scheme could come up by the end of March in 2021 or the first week of April. We are talking with the states on attracting investment for industrial manufacturing in the country. So far 8 states have agreed and by November 15, six more states will join it. We expect 20 states to join by the end of the current financial year. He said that in states like Andhra Pradesh and Odisha, inquiries are being made to set up infrastructure units and automobile industries. Work is being done in this direction as part of the plan to attract foreign investment in the country. State governments are also working with the Ministry of Finance and Ministry of Commerce on this scheme. Under this, all necessary regulatory and state related approvals for setting up manufacturing units in the country will help in achieving the same place.

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In order to improve this facility, the government has also decided to create a land bank repository, in which information on all the empty plots, availability of raw materials and transport links etc. will be available. The government is working on a single clearance mechanism for land banks and areas where infrastructure is in great need. These sectors include automobile, steel, aluminum and other industrial manufacturing sectors. Sovereign funds and other investors often cite lack of land for various projects. It will also help in making the business environment more accessible in the country. Atul Pandey, partner in Khaitan & Co., said that land banks in various states were divided into many pieces, problems in land acquisition and projects started

The central government will have to take note of the concern of the respective state governments regarding the incentives given to investors due to all the governmental formalities in the way of doing so. In addition to this, the government should issue authority certificate of each plot to give assurance to potential investors. Apart from this, the government should introduce a single clearance system for other necessary licenses and registrations.

Pandey said that this would greatly help in increasing the industrial manufacturing base in India. This portal will also have information about high priority areas under ‘Make in India’. These will include land available in the state and various districts etc.