Chandigarh's industry forms common platform

To take up the issues hindering growth of industry in Chandigarh, the three main industrial associations of Chandigarh (Industries' Association of Chandigarh, Federation of Small Scale Industries and Chamber of Chandigarh Industries) have joined hands to create a common platform.

"For the last couple of years, the Chandigarh Administration has become insensitive towards the issues concerning local industry. It is felt that commercialisation is being promoted at the cost of industry," said Naveen Miglani, vice-president, Chamber of Chandigarh Industries.

The Chandigarh Industrial area has two phases "" Phase-I and Phase-II "" spread over 600 acres. There are proposals to develop a new industrial area, Phase-III. About a year ago, the administration allowed conversion of industrial sheds into commercial property like hotel, malls and multiplexes by paying change in land use charges.

As a result, more than a dozen malls, multiplexes and hotels are coming up, which paid change in land use charges to the administration.

"The Chandigarh administration has decided to go in for open auction of industrial plots in the upcoming Phase-III, which is absolutely uncalled for. The allotment of industrial plots has always been done on the basis of the merit of the potential units, decided through a screening, according to the industrial policy," said Pawan K Aggrawal, honorary secretary of the Industries' Association of Chandigarh.

He added, "Allotment through auction will give an unhealthy boost to the land mafia, rather than to the actual manufacturers. The prices should be determined by taking into account the cost of acquisition plus development charges, and not by auction. We jointly condemn this move by the administration and it should be immediately withdrawn."

"Industry has been facing acute shortage of space due to the non-availability of any additional industrial land since more than 25 years. We have always been demanding to allow us to grow vertically and permit higher floor area ratio. Unfortunately, the administration has been insensitive to this issue." said Miglani.

"However, after the conversion policy in the industrial area, the higher floor area ratio is being granted to the commercial units. We take very strong exception to this. Commercialisation at the cost of industry in the dedicated industrial area is not acceptable. We demand that floor area ration of 2 must immediately be allowed at the payment of the existing rate of Rs 200 per square foot for industry.We also appeal that all relaxations that have been decided by the administration to be given to the commercial units in industrial area must also be allowed to the industrial units, for which the plots have been actually allotted," he said.

"Also, the lease agreement of industrial plots clearly mention that plots will be allowed to be transferred after 15 years from the date of allotment. Though more than 25 years have passed, the transfers have not been allowed. The property has been changing hands through general power of attorney, wherein the administration loses revenue on account of the stamp duty and those holding general power of attorney cannot raise loan on such property," he added.

"We demand that the transfer be allowed immediately by setting nominal charges, which must be set by the committee," he suggested.