KARACH, Feb 21: The Sindh government is formulating an industrial policy to encourage industrialisation in the province, especially in the interior.

The policy would envisage setting up of at least one industry in every taluka. The province has about 100 talukas.

Briefing Dawn on salient features of the policy, Industries Secretary Ali Ahmed Lund said that the policy would recommend industries in talukas in the light of availability of raw material.

For example, areas which are rich in minerals would be identified for mining industries. Similarly cotton, rice and mango areas would be earmarked for industries based on produce in those areas. There is a scope for rice milling, ginning and treatment plants for mangoes.

He said the policy, which would be ready in three months for enforcement, would be the first-ever formal industrial document in the province which was earlier implemented through notifications and circulars issued from time to time.

Minister for Industries and Commerce Rauf Siddiqui has already announced that the government would allow ten-year tax holiday for agro-based industries to be set up in the interior.

Under the proposed policy, the Sindh government has decided to do away with condition of NOC required for location of new industries.

The NOC condition delayed industrialisation due to bureaucratic hurdles.

The concerned departments asked new investors desirous of setting up of industries to provide a number of documents which delayed and some time frustrated investors to abandon projects.

The policy would recommend setting up of ten small industrial estates at places, like Nawabshah, Khairpur, Sehwan, Shahdadpur, Jhuddo, Degree, Jalifem Saheb and Daulatpur, besides extension of existing 16 industrial estates.

Private management development companies would be set up in various industrial estates for development of infrastructure. Four such companies have already been established in four major industrial estates in Karachi, with R250 million capital for each.

The policy is being framed in consultation with the concerned ministries and the private sector.

A meeting with secretaries of nine ministries, including agriculture, information technology, labour, finance and excise and taxation, was held recently to seek priorities of projects in these sectors.

The industries department has sent letters to the FPCCI, Karachi Chamber of Commerce, trade bodies, chamber of Agriculture and Sindh Abadgar Board to elicit their views to be incorporated in the new policy.

After the draft of the policy is ready it would be approved by an advisory committee, headed by the minister of industries and commerce before putting it up for the approval by the Sindh cabinet.

Meanwhile, Karachi Chamber of Commerce and Industry President Anjum Nisar welcomed the formulation of a new industrial policy for Sindh but said that the policy would not be successful unless it carries steps to reduce the cost of doing business.

He said that high rates of utilities and frequent load-shedding have made existing industries uncompetitive. No investor would come forward unless he is assured of abundance electricity supply.

He suggested that all new industrial estates should have their own power generating plants to feed industrial units to be set up in new estates.

He said that the new policy must focus on setting up of processing plants and cold storages in crop areas to preserve fruits and vegetables not only for exports but for domestic market as well.

This would eliminate wastage up to 26 per cent of total fruits and vegetable production and would increase their shelf life.