For companies which are setting up new units in Uttarakhand, it is virtually a mad scramble to start production.
Racing against time, nearly 150 to 200 companies are expected to come into production before March 31 this year when the special industrial package expires.
According to a conservative estimate, nearly 100-150 companies are expected to start production before the deadline at Pantnagar, Haridwar, Sitarganj, Selaquie and Kotdwar industrial estates, which havebeen developed by the State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (Sidcul). Top officials here said nearly 50 others were expected to start production in private industrial areas in the hill state in the next two months.
Among the major companies, Ashok Leyland, a flagship company of the Hinduja group, is likely to come into production at Pantnagar integrated industrial estate where it is setting up its new plant. Other companies like Haldiram and Hindustan Zinc may also follow suit at Pantnagar.
Although, Chief Minister Ramesh Pokhriyal Nishank is still optimistic that the package, which offers a slew of tax incentives, would be extended, companies are a bit apprehensive on the issue. Nevertheless, they are pulling out all the stops to meet the deadline of March 31. But still, a large number of companies may not be able to achieve the target owing to several factors like recession.
According to the latest data provided by Sidcul, a total of 1,480 companies were allotted land at the integrated industrial estates of Sidcul. While 733 units have already started production, nearly 557 are still under construction. Of the 557 units, officials said only 100-150 companies would be able to meet the deadline. The officials are still hopeful that the rest of the units would start production to take the benefits of income tax and capital subsidy which are available till 2012.
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The top companies, which have already started production include Tata Motors, Nestle, Hero Honda, HUL and Bajaj Auto.
In Haridwar where Sidcul has developed a 1,695 acre industrial estate, a total of 615 companies were allotted land. Out of this, 333 companies (HUL and M&M among major ones) have started production and 282 are still under construction.
In 3,193 acre Pantnagar industrial estate, 471 units were allotted land. Of this, 318 companies like Dabur, Nestle, HP, Tata Motors, Bajaj Auto and Britannia have already started construction and 153 are under construction. Significantly, Nano is also being produced from Tata Motors’ Pantnagar plant.