The Rs 30-crore industry continues to be under threat. Over 200 units have shut shop and another 10 are on the verge of closure. Only 30 to 40 small scale units in organised sector are operational.
The number of units operational in the unorganised sector is also on the decline. Owners of several bulb manufacturing units are opening schools at premises where these units once stood.
"It is sad that not many people could take the benefit of tax breaks. Except the top four-six units, most of the units are in bad shape," said Pankaj Gupta, president, Industries Association of Uttarakhand (IAU).
But there are a few manufacturers who have carried out substantial expansion to take the benefit of tax breaks and are able to make a profit.Rajiv Berry, owner Anand Industries, which has a turnover of Rs 3 crore, has now stopped manufacturing Indolite brand of torch bulbs.
"Light emitting diodes are better substitutes for torch bulbs. So we switched over to railway signal lamps, last year," said Berry.
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The first miniature bulb factory in India was set up in Dehradun in 1958 by AC Jain to manufacture Comet bulbs. The first Comet factory closed down in 2006.
"My grandfather (AC Jain) was the pioneer in the miniature bulb industry. He was the pioneer for this business in India," said Rajiv Agarwal, who now runs the second factory.
Last year, Agarwal carried out expansion and set up a third unit at Dehradun with an investment of Rs 1 crore. "Now we are making a profit due to excise and other benefits in Uttarakhand," said Agarwal.
But despite getting the benefits of tax breaks, the industry continues to ail. "The industry is facing a tough time because there is no government support and separation of Uttarakhand from Uttar Pradesh also led to the decline," said Gupta.
Nevertheless, there is still a ray of hope. With top-notch auto industries like Tata Motors, M & M, Hero Honda and Bajaj Auto setting up shop in the state, experts said the bulb industry must gear up to fulfil the need in Uttarakhand, which is fast emerging as a big auto hub.