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 needed an approval in the form of industrial license 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 license. 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 License 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.11951 IEMs having an aggregate investment of Rs.12,82,849 Crores have been acknowledged for locations in Gujarat. In addition, the state has also received 1436 Letters of Intent entailing an investment of Rs. 68,817 Crores during 01/01/1983 to 30/04/2016 as on 31/05/2016.

For setting up 100% EOUs, the state had also received 1595 Letters of Permission involving an investment of Rs.6,652 Crores during 01/01/1983 to 30/04/2016 as on 31/05/2016. 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.

6251 projects with an investment of Rs.2,75,880 Crores have been commissioned. In addition, 3906 projects having investment of Rs. 9,24,598 Crores are Under Implementation against above approvals. [Period from 01/01/1983 to 30/04/2016 as on 31/05/2016]

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