Civic misrule: Vatva industries threaten AMC with tax stoppage

Enraged over being neglected by the Ahmedabad Municipal Corporation (AMC), which has not been providing infrastructure facilities such as proper roads, street lights, water and sewage facilities and storm water drains, the Vatva Industrial Association (VIA), the largest industrial association in the state, has threatened to boycott payment of property tax to the civic body.

Several units are also considering moving out of Vatva GIDC area if conditions do not improve.

With over 450 of the total 3,000 units of Vatva GIDC involved in exports, industrialists say that they cannot even invite their foreign partners to Vatva GIDC, as the conditions are so bad. The industrialists state that many companies have lost export orders because of bad infrastructure facilities.

"Ever since Vatva industrial area was included within municipal corporation limits in 1986, industries have been burdened with octroi, property tax and other municipal taxes.

And in return, the AMC has not provided the industrial area with basic infrastructure facilities such as roads, drinking water, street lights and sewage systems," Vatva Industrial Association president Kirit Patel told reporters on Tuesday.

He added that the AMC at present earns around Rs 70 crore in the form of octroi and another Rs eight crore in the form of property tax from Vatva industries. In return though, not more than Rs 15 lakh is being spent on upgrading infrastructure facilities at the industrial estate, he said.

VIA treasurer Archish Shah said that industries of Vatva have a turnover of Rs 10,000 crore, of which Rs 2000 crore consists of exports.

"Instead of growing at a healthy pace, the turnover has been steadily falling over the past three or four years," he said. Vatva Industrial Estate, spread over 550 hectares, has engineering, chemicals, dyes, intermediates, plastics, rolling mills and other units.

"All units of Vatva Industrial Association are paying water and sewerage tax, but there is not a single foot of drinking water pipeline or any sewage lines or even storm water drains. This step-motherly treatment is just because Vatva industries do not form a vote bank," complained Shah.

It may be stated that a couple of years ago, the VIA had mooted a proposal of setting up a special purpose vehicle that will be solely responsible for providing infrastructure facilities to the industrial area.

The plan was to set up a Rs 20 crore fund, which would be partly met through property tax paid by the industries. "The AMC does not seem interested in the proposal and it has now been shelved. The ruling party in the Municipal Corporation is not interested," Shah said.