The Maharashtra government proposes to amend the state's industrial policy of 2001 to attract investors and take on the rising competition from other states.

The state will seek the Union government's early approval to its policy on special economic zones (SEZs) and will take up infrastructure development in right earnest.

The state industry minister said in a recent industry summit that the government was preparing to shift from sales tax to the value-added tax (VAT) regime from April 1 and would examine what other incentives could be given to investors.

Talks are underway with various chambers of commerce and industry. After gathering inputs from them and seeking approval from the Cabinet, the government could amend the state industrial policy. The policy comes to an end in 2006. However, in view of the changed situation, the government would amend the policy at the earliest, the minister stressed.

The 2001 policy was devoted to sales tax-related concessions, with a scheme of incentives to attract investors in both developed and under-developed areas. The state government may recommend exemption in income-tax and also in sales tax as is being currently given by Haryana and Himachal Pradesh.

The state-run Maharashtra Industrial Development Corporation is currently in the process of acquiring 1,000 hectares of land at Hinjewadi, near Pune, to attract investments.

Hinjewadi phase-I and II are full, as the leading information technology companies such as Infosys, Wipro as also from the biotechnology sector have started their facilities. There have been queries from various investors for Hinjewadi phase-III.