Don’t miss the latest developments in business and finance.

Vatva industries body asks for Rs 50 crore Central subsidy

Image
Meghdoot Sharon Ahmedabad
Last Updated : Feb 06 2013 | 5:00 PM IST
With the Ahmedabad Municipal Corporation (AMC) failing in its duties to provide infrastructural facilities to Vatva industries, the Vatva Industrial Association has now taken up the matter directly with the Central government.
 
The Association has sent a proposal to the Centre for infrastructural facilities under the cluster development programme.
 
Vatva Industrial Estate, spread over 550 hectares, has engineering, chemical, dyes, intermediates, plastics, rolling mills and other units and is the biggest industrial estate in the state. Industries of Vatva have a turnover of Rs 10,000 crore, with Rs 2,000 crore coming from exports.
 
"We first asked the AMC to provide us facilities such as drainage lines, road network and streetlights as we are within the AMC limits. But that did not happen. Then we proposed creation of a Special Purpose Vehicle for providing facilities to the industrial area, but that too did not materialise. We have now approached the Central government directly for assistance under its cluster development programme," said an office bearer of the Vatva Industries Association.
 
As per the Rs 72 crore proposal, which will cover all the three major industrial estates of Naroda, Vatva and Odhav. Rs 50 crore will be provided by the Central government as subsidy, Rs 8 crore will be raised by industries, while the remaining Rs 14 crore will be raised through loans.
 
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 infrastructure is so bad.
 
The industrialists said that many companies have lost export orders because of bad infrastructure facilities.
 
The AMC at present earns around Rs 70 crore as octroi and another Rs 8 crore in the form of property tax from Vatva industries. In return the Corporation has spent not more than Rs 15 lakh on upgrading infrastructure facilities at the industrial estate, say office bearers of the Association.

 
 

Also Read

First Published: Oct 11 2004 | 12:00 AM IST

Next Story