The industrially progressive States were able to take the benefits of the Scheme due to their inherent advantages in mobilizing industry associations, and conceiving and preparing project proposals quickly.
As a result, 18 out of the 26 sanctioned projects are in Tamil Nadu, Gujarat, West Bengal, Maharashtra, Karnataka and Andhra Pradesh.
In order to correct this skewed pattern of sanction, the Department of Industrial Policy & Promotion obtained the approval of the CCEA for sanctioning six additional projects in industrially less developed States.
Industrial Infrastructure Upgradation Scheme was launched in 2003 with a view to enhance competitiveness of industry by providing quality infrastructure through public-private partnership in selected functional clusters.
Central assistance up to 75% of the project cost subject to a ceiling of Rs.50 crore is given for each project. The remaining project cost is required to be financed by the stakeholders of respective clusters subject to a minimum industry contribution of 15% of the approved project cost.
Press Information Bureau Government of India