Ganguly said unhealthy competition among the states in offering incentives to industry would lead to further regional imbalances as relatively developed states such as Maharashtra, Gujarat, Punjab, Tamil Nadu, Andhra Pradesh and West Bengal would be better placed in attracting investments. But backward states would not be in a position to offer anything lucrative and hence would not be able to attract investments.

To avoid further imbalances, a uniform system of incentives had to be developed, Ganguly said.

When a new industry is set up, the Central government gets its duties from the very first day, whereas the state governments have to wait for five to seven days. Hence, forindustrialisation the Centre should also offer incentives and make sacrifices, he said.

"Despite the fact that some people are boasting of liberalisation, hundreds of central clearances are still necessary for setting up an industry," he pointed out.

Ganguly also urged the industry not to depend solely on the government for infrastructure development. "Industry should also have to play an important role here as they would be the major beneficiary," he said.

EIMA president NL Kejriwal urged the state government to levy first-point sales tax on non-ferrous metals and scraps. He said, "non-ferrous metals are attracting multiple-point sales tax and as a consequence, due to cascading effect of multiple-point sales tax, our industry has become heavily burdened, uncompetitive and costly."

Kejriwal also urged the state government to scrap the way bill system and said the continuation of the system with its harsh and crude provisions would strangulate trade and industry. "In the present era of liberalisation,enactment of such laws is a retrograde step as it delays the supply of goods, breeds corruption, induces harassment and extra expenditure and creates hindrances in the development of industry and trade," he said.