Small BusinessChd industries await new policy Implementation
Industrialists say lack of policy guidelines affecting growth.
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So near, yet so far. This aptly describes the situation of the 4,500-odd industrial units located in the Chandigarh industrial area that have been eagerly awaiting the implementation of the new industrial policy.
President, Chamber of Chandigarh Industries Vinod Mittal maintained that the draft of the new industrial policy for Chandigarh, that was prepared after 30 years, promised much, but unfortunately the final policy missed the quintessence of the plans and objectives.
With the core of the policy left out, the various industrial associations opposed it tooth and nail, as a result of which the implementation of the policy that was due by August, continues to hang fire.
The absence of an industrial policy for last thirty years has adversely impacted the growth of industrial units in Chandigarh. Mittal added that though the suggestions from industrial associations were incorporated while forming the Draft Industrial Policy, the issues had been dropped in the final policy.
Mittal lamented that the fastener industry in Chandigarh had been affected adversely as the demand of increase in Floor Area Ratio (Far) had not been increased.
Chandigarh has around 300-325 registered and unregistered fastener units, out of which 90 per cent are in micro category and 10 per cent in small category. The fastener industry in Chandigarh generates business close to Rs 170-180 crore
With Chandigarh landlocked and no space for horizontal expansion, Far should have been increased, felt the industrialist.
In absence of Far being increased, the fastener units are finding it tough to compete. As a result of this, the industry growth is being stifled. Making jest of policies being followed, Mittal said that while for commercial buildings the Far had been increased from 1:1 to 1:2, industrial units were not allowed to increase it from 1:1 to 1:1.5, on pretext that they would unnecessarily burden the infrastructure.
He added that another contentious issue that had been left out was regarding the conversion of lease hold industrial plot to free hold wherein the the conversion fee was yet to be fixed. Had the administration allowed conversion of plots to free hold, it could have easily gained Rs 700-800 crore, Mittal said..
Mittal added that the industry was also demanding that warehousing, an integral part of industrial activity, should be allowed in the industrial area.
Other demands include acknowledging IT and ITeS sectors to be part of industries and also reserving certain percentage of plots in the upcoming third phase of Industrial Park in Chandigarh for the existing industrial area tenants.