Announcing this at a seminar on "investment opportunities in Maharashtra," organised by the Confederation of Indian Industry (CII), the Maharashtra chief minister Vilasrao Deshmukh said that such a policy will supplement the recently released new industrial policy.

"Against the backdrop of WTO regime, the local players in sugar, information technology and garment sectors should compete with global players," he added.

Mr Deshmukh said that Maharashtra's contribution to Indian exports is quite significantly one third of total sugar production. However, he added that the cooperative sugar factories would have to identify new markets globally and take necessary steps accordingly.

The chief minister said that his government has planned special economic zones (SEZs) at Aurangabad and Nagpur. Simultaneously, the state-run City and Industrial Development Corporation is working out modalities for the development of another SEZ at Dronagiri in Navi Mumbai.

Mr Deshmukh strongly justified his government's decision to amend the Industrial Disputes Act and Contract Labour Act and said that "these changes are necessary to increase employment and enable industry to face competition, while safeguarding the interests of labourers."

Mr Deshmukh said that although Maharashtra continues to be the most favoured destination among investors, the time has come to set new standards to match the progress made by countries such as China. "In the next 10 years, we must achieve international standards in infrastructure and services and in the social indicators that determine the quality of life and provide basis for economic growth," he added.

The state chief minister Deshmukh told the gathering that Maharashtra has attracted the largest investment in industrial projects, overtaking Gujarat. He said that new infrastructure, industry and service projects worth Rs 90,000 crore are currently under actual implementation in the state.

Responding to the queries raised by the CII western region chairman Pradip Mullick, the chief minister offered a piece of land in the city as the government equity for the development of long pending exhibition cum convention centre in the private sector. He said that his government has already done away with the Urban Ceiling Land Act in the state, except Mumbai, Thane and Pune. He added that his government favours simplified taxation procedure and would shortly come out with a solution on tax imposed on the captive power generation.

State industries secretary Vishwas Dhumal said that the government, which has given priority on the promotion of information technology, has also decided to encourage bio-technology and related industries in the state. He informed that a special task force chaired by CSIR director geneal Dr R Mashelkar has been set up to prepare a bio-tech policy and suggest measures to promote bio-tech industry in the state.

The Tata Industries managing director Kishor Chaukar called for hassle free governance and facilitation for becoming more industry and entrepreneur-friendly.