According to a Maharashtra Chambers of Commerce and Industry spokesman, the state government's recent move to hike the water, power charges and an increase in the factory license fee, has led to many small scale industries relocating to the neighbouring states like Gujarat and Daman. ``This has resulted in a steep decline in employment figures in the SSI sector but the government is busy in giving concessions to the rich and powerful groups instead of focusing on the small units,'' MCCI members said.

The state government package to the Tatas materialised after an intense lobbying by a member of parliament who isalso a car dealer. Interestingly, dealer has recently taken up the dealership of Telco's passenger cars in Mumbai city by relinquishing the previous Maruti dealership.

In order to present their case, a delegation led by MCCI president recently met the State finance minister and industry secretary who refused to grant any concession to the small industries. ``The cost of production in Maharashtra has gone up significantly in the last four years, hence it is not surprising that not a single big project has taken off recently,'' said a Indian Merchants Chamber (IMC) official.

What has surprised the industry associations is that the incentives to the Tatas were announced when the state is going through a major financial crisis. Recently, while downgrading Maharashtra, Crisil has said that the Shiv Sena-BJP government will have a tough time meeting its Pay Commission obligations towards its employees.

The Thane-Belapur Industries Association officials say due to closure of many SSI units in their belt, theyhave even filed a suit in the Mumbai high court against a MSEB move to hike electricity charges. ``Specially under the present circumstances where the industry is severely hit by recession, burden of higher tariff can not be borne by it,'' said an officer bearer of the association.

The State is going through an unprecedented lack of business confidence as small and medium sized business are closing down. The government should immediately look into the woes of other industries, he adds.

Besides, the industry's demand to scrap the dreaded octroi has also met with stiff resistance from the government and its employees due to high level of corruption in octroi posts. ``While in one hand, the government is ready to lose revenue by favouring the Tatas, and on the other they are driving out the small and medium size industries,'' said an IMC official.

THE SSI DEMANDS