Businesses look for alternatives as Industrial Area stagnates

lack of development forcing units to shift elsewhere

Lack of incentives, no industrial policy and high cost of land is proving to be a deterrent for industrialists to set up new industries in the city. The slow pace of infrastructure development in Industrial Area is especially adding to the woes and forcing many entrepreneurs to set up their units elsewhere.

As per data provided by the Industries Department there were eight large-scale industries in the city in 2006-07, which has now decreased to just four. Micro, Small and Medium Scale industries have increased in numbers, but industrialists claim that the increase is not in the variety of units but due to existing units expanding their operations.

DEVELOPMENT

Confusion over implementation of the Micro Small & Medium Enterprises Development (MSMED) Act is another problem for enterprises. The Act provides for construction of warehouses, service industry, IT and IT-enabled services. While some of these activities are going on in Industrial Area, misuse notices are frequently sent by the Estate Office which the industrialists are opposing.

"The administration should implement the MSMED Act and improve infrastructure. That would give a boost to the industry. Need-based changes should be allowed. Currently, property is exchanging hands on basis of General Power of Attorney. Property should instead be allotted on freehold basis," said industrialist Naveen Manglani.

COST OF LAND

Industrialists claim that one of the main reasons for decreased industrial activity is due to the prohibitive cost of land in Chandigarh. Businessmen say that instead of Chandigarh if they buy land in peripheral areas, they are able to set up a bigger unit as land is available at cheaper rates. In addition to this, Chandigarh has failed to provide new industrial plots in the past several decades.

The president of the Chandigarh Industries Association, MPS Chawla said: "The land available in peripheral areas is almost half the price in Chandigarh. People who want to expand their units prefer to take land outside."

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