SSI growth slowing down in Jalandhar

As compared to last year, there has been a decline in the number of small-scale industries coming up in Jalandhar. The reason for this is that most of the entrepreneurs wanting to set up units are being lured away by the Himachal government's industry-friendly policies.

And instead of setting up units here, they set up their industries in Himachal to avail themselves of the sops like tax benefits provided by the Himachal government.

Moreover, they said the lack of industry policies of the state government is also one of the prominent reasons for the decline in investment.

The Data collected from District Industries Centre, Jalandhar reveals that this financial year, 2005-06, 94 units got registered with District Industries Centre till February 06, in comparison to 120 units during the corresponding period last year.

So far the tune of investment is concerned it was Rs 9.51 crore last year during the same period, while this year the investment was Rs. 10.15 crores till February 06, a slight increase from last financial year due to higher imput costs. Overall, In last financial year, 2004-05, the total investments was Rs. 10.80 crore and 136 units got registered.

The new units that came into existence this year, was related to Pipe Fitting and Hand Tools. Commenting upon the decline in nummber of new units, sources in the industry revealed that the policies of the government is not encouraging. They further lamented," why one should put up their unit here." The industrial subsidy is pending with the government, also even the export frieght subsidy has not being released yet." Moreover there is shortage of electricity, besides that poor infrastructure is also one of the main bottleneck in the trade, they added. That's why new entrepreneurs have shifted their focus from Punjab to Himachal, where they are getting so many incentives and tax benefits," they said.