Haryana Government Initiative For Industrial Development

Concept Explanation

State Government Initiatives for Industrial Development

The Haryana State Industrial Development Corporation (HSIDC) is the nodal agency o the state for development of industrial infrastructure.The corporation has successfully developed number of Industrial Model Townships/Industrial Estates at strategic locations in the state and plans to develop such projects at new sites besides expansion of existing ones.

Following initiatives are being taken by the state for the development of industrial infrastructure:

Inland Container Depot and Storage Centres

The state has set up Inland Container Depot for providing the storage and warehouse for Providing the storage and warehouse facilities to businesses.

It is set up at Faridabad, Rewari and Panipat.

The Container Corporation of India is setting up a cold chain complex at Rai (Sonipat).

In Bawal warehousing facilities are developed with public private partnership. (PPP Model).

Industrial Development Centres

Centre for Industrial Development is set up in Bawal, Rewari district to initiate industrialisation.

Another centre for Industrial Development is set up in Saha, Ambala district. The centres are developed to provide world class facilities to encourage big companies to invest there. Nerolac, Exide, Becton etc. have been operating their units here.

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Sample Questions

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Question : 1

Which of the following statements are correct regarding initiatives by Haryana government for industrial development? (a) HSIDC serves as the nodal agency for developing industrial infrastructure, including industrial estates and model townships. (b) Both Bawal (Rewari district) and Saha (Ambala district) host Industrial Development Centres. (c) The PPP model is applied to the warehousing facilities developed in Bawal.
A. Both(a) and (b)	B. Both(b) and (c)	C. Both(a) and (c)	D. All of these
Right Option : D
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Question : 2

What is the primary goal of Industrial Development Centres in Haryana state?
A. Promote agriculture		B. Provide world-class facilities for industries
C. Develop tourism hubs		D. Build residential colonies
Right Option : B
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Explanation

The primary goal of Industrial Development Centres is to provide world-class facilities for industries to foster economic growth, attract investments, and enhance the industrial landscape of the region. These centres are designed to create an ecosystem conducive to industrial operations by offering state-of-the-art infrastructure, modern amenities, and streamlined processes for businesses. By focusing on world-class facilities, these centres aim to establish themselves as hubs of innovation and economic activity.

Industrial Development Centres prioritize building infrastructure that supports industries in all aspects of their operations. This includes the availability of high-quality roads, electricity, water supply, waste management, and communication networks. These facilities ensure that industries can operate without disruption and meet global standards of productivity and efficiency. The availability of such infrastructure is often a decisive factor for companies when choosing a location for their operations.

In addition to physical infrastructure, these centres provide various services that cater to the specific needs of industries. For instance, they may offer support for obtaining regulatory approvals, access to skilled labor, and proximity to transportation hubs for efficient logistics. Such comprehensive support reduces the operational challenges faced by businesses and encourages large-scale industrial investment, as seen in Haryana’s development centres like those in Bawal and Saha.

Moreover, the establishment of Industrial Development Centres often results in a multiplier effect on the local economy. These centres attract large companies that set up their units, creating direct and indirect employment opportunities. Ancillary industries and service providers also thrive in the vicinity, boosting economic development in the region. The presence of companies like Nerolac, Exide, and Becton in Haryana’s industrial centres is a testament to this positive impact.

Lastly, these centres aim to integrate sustainability into industrial development. By adopting green practices such as energy-efficient technologies, waste recycling systems, and environmentally friendly designs, they contribute to sustainable economic growth. This focus on sustainability not only meets modern corporate social responsibility standards but also aligns with global trends, further enhancing the appeal of these centres to international investors.

Thus, the primary goal of providing world-class facilities for industries is a comprehensive strategy to drive economic growth, attract investment, and create a sustainable industrial ecosystem.

Hence Option B is Correct.

Question : 3

Recognising the strength of Special Economic Zone, the state of Haryana came with Haryana Special Economic Zone Act in the year
A. 2004	B. 2005	C. 2006	D. 2007
Right Option : C
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Explanation

A Special Economic Zone (SEZ) is a designated area within a country that is subject to different economic regulations than other regions. These regulations often favor business activities like manufacturing, services, and exports by providing incentives such as tax exemptions, better infrastructure, and relaxed labor laws. The concept of SEZs is meant to encourage foreign investment, boost exports, and create jobs.

In India, SEZs have been crucial for industrial and economic development, and several states, including Haryana, have capitalized on the potential of these zones.

Haryana Special Economic Zone Act: Historical Context

Haryana, being an industrially developed state, recognized the economic benefits of SEZs early on. The Haryana Special Economic Zone Act was introduced to establish a clear legal framework for the development, operation, and management of SEZs in the state. The state government’s aim was to promote export-oriented industrial growth, attract foreign investments, and enhance employment opportunities. Haryana has several key cities like Gurgaon, Faridabad, and Kundli, which are key hubs for industries such as automobiles, IT, and manufacturing, all of which stand to benefit from SEZs.

1. 2004

The year 2004 was pivotal in terms of the Indian economy, as it was during this time that India began to rapidly increase its focus on economic liberalization, industrial growth, and foreign investments. In 2000, the Special Economic Zones (SEZ) Act, 2005 was passed by the Government of India, which laid down a national framework for the establishment and development of SEZs across India. However, Haryana’s own Special Economic Zone Act came a year after the passing of the national act to allow the state to create its own framework.

Though 2004 was a year of growing economic liberalization in India, the state government of Haryana passed the SEZ Act a little later to ensure that the legal and regulatory framework was tailored to its industrial and economic environment.

2. 2005

The SEZ Act of 2005 was indeed the national legislation that gave rise to SEZs in India. It was designed to promote exports and industrialization by offering various benefits. However, Haryana’s state-level version of the SEZ Act came later, after the framework of the central SEZ Act was established. While the national SEZ Act was a major catalyst for SEZ development, the state government in Haryana waited until the following year to enact its own legislation.

The Haryana Special Economic Zone Act was passed after the national Act, and it provided the necessary framework to allow the state to focus on creating SEZs specific to its economic needs. Thus, although 2005 was critical in terms of the national framework, the Haryana-specific SEZ Act came later.

3. 2006

2006 is the correct year when the Haryana Special Economic Zone Act was passed. This year marked the formal establishment of the legal framework that would allow the state to create and manage Special Economic Zones within its jurisdiction. The passage of this Act was a crucial step in promoting industrial growth and attracting foreign direct investment (FDI) into Haryana. The state government aimed to leverage the incentives provided by SEZs to stimulate economic activity, particularly in the manufacturing and export sectors.

Haryana, being one of the more industrially advanced states in India, recognized that the creation of SEZs would help boost its economy, create job opportunities, and improve its global competitiveness. The state’s infrastructure and proximity to Delhi made it an ideal candidate for the establishment of multiple SEZs. The Haryana SEZ Act of 2006 provided the legislative foundation for several SEZs to be developed in the state, particularly around industrial hubs like Gurgaon, Faridabad, and Kundli.

4. 2007

While 2007 was an important year for various developments in India’s economic landscape, including those related to SEZs, 2007 was not the year the Haryana SEZ Act was passed. By 2007, the state had already established its legal framework with the passing of the Act in 2006.

Summary of Analysis:

2004: While 2004 was important for India’s economic growth, the Haryana SEZ Act was not passed in this year.
2005: The national SEZ Act was passed in 2005, but Haryana introduced its own SEZ Act the following year.
2006: This is the correct year when the Haryana Special Economic Zone Act was passed, making it the right answer.
2007: The SEZ Act was already passed by 2006, so 2007 is not correct.