The impact of the global economic meltdown seems to have considerably affected the pace of industrial investment in Himachal Pradesh in the last few months with investment slowing down to a trickle in the hill state.
Information provided by officials of the state industries department reveals that in August and September 2008, industrial units proposing an investment of Rs 3,095 crore were cleared.
But from October to December, projects proposing an investment of only Rs 409 crore were cleared by the state's single window clearance committee.
Interestingly the first nine months of this year have seen the largest industrial investment to the tune of Rs 7,546 crore since the industrial package was announced six years ago.
But equally surprising has been the sudden sharp fall in the last three months.The Central excise holiday package was announced in early 2003 and has so far attracted proposed investments of almost Rs 30,000 crore.
Much of this investment is confined to the booming Baddi, Barotiwala and Nalagarh industrial belt in Solan district.
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“The reason for this drop in investments is the overall economic slowdown and also the nearing of the date of expiry of the excise package which ends in early 2010,” said Arun Rawat, General Secretary of Baddi Barotiwala and Nalagarh Industrial Association.
A similar view was expressed by Rajinder Chauhan, industry adviser to the state industries department.
The state government has been lobbying with the Centre to extend the industrial package holiday to 2013 in the hill state but this is being opposed by neighbouring states like Punjab and Haryana.