 "S N Jhunjhunwala, Managing Director, JVL Agro Industries")
Eastern Uttar Pradesh lags far behind the western parts of the state in terms of infrastructure - the main hurdle that is holding back the growth of industry there. Entrepreneurs say that a special package like the one that was offered to Uttarakhand is needed. S N Jhunjhunwala, Managing Director, JVL Agro Industries, located in eastern UP, speaks to Siddharth Kalhans. Edited excerpts:
How do you see industry coming up in eastern UP, and what needs to be done to boost this process?
Not much has been done here, or you can say a lot still needs to be done. Eastern UP is a backward region and there are not many industrial townships here. If there are a few, they do not have infrastructure facilities like Kanpur, Ghaziabad, Noida and western UP. Road connectivity is still a big issue in most of parts of eastern UP. Though the new expressway called the Samajwadi Poorvanchanal Expressway will improve conditions, there is need for more attention and focus.
More From This Section
True, Bihar is an option before us and in the recent past we have been attracted by Bihar's policies and facilities. Entrepreneurs get many rebates, sops and incentives in Bihar. Recently, many industries from east UP shifted there. I myself set up a food processing plant in Bihar. Dehri-on-Son in Bihar, adjacent to Varanasi, is becoming a hub for solvent extraction, food processing and rice milling. In Bihar there are many incentives in commercial taxes, besides cash subsidy.
What steps should the UP government take?
We have spoken to the state government many times. I have myself handed over booklets containing the policies of the Bihar government and asked officials to frame policies like those. The government has to consider this. To remove the backwardness of eastern UP at least facilities like those given to Uttarakhand should be provided and cash incentives should be given. While looking at industrial development in UP and figures of growth, separate out western UP and then you will get the real picture. Areas that have made progress are moving further ahead, and the backward areas are regressing. This anomaly needs to be removed.
What are the possibilities of industrial growth in east UP?
Cheap and ample manpower is our asset. Today, the maximum amount of manpower in the entire country leaves this region, which can be stopped by setting up industries here. This region can get the maximum benefit from the Skill Development Mission. Only if we provide employment to our youth by providing them with skills right here, will the production cost be reduced putting eastern UP on the path of development. The Union government will have to come forward to help develop eastern UP.
What kind of help do eastern UP's entrepreneurs seek from the Union government?
Until now we haven't seen any benefit resulting from Varanasi being the parliamentary constituency of the prime minister. Yes, it has come into the limelight and a few schemes have been announced, but this has not yielded any results. In fact, will power from both the Centre and state government is needed to initiate all-round development. Only then can things be changed.
There has been talk of creating a special economic zone in eastern UP.
The Union government had made announcements regarding the SEZ, and that gave us a ray of hope. Now the situation has changed and the climate is not favourable for SEZs in the entire country. The Union government has brought them under the income tax net. Even my company had planned a SEZ in eastern UP. We have not denotified it yet, like others. Recently, it has been heard that the state and the Union government are willing to give some sops to SEZs. But it is a fact that SEZs are no longer as lucrative as they were earlier.
What is the situation of the traditional industries of eastern UP?
None of them is performing well these days. Whether you talk about the silk industry or the carpet industry, every industry has problems of its own. They have their set of demands and their problems. All these industries are facing stiff competition. Machine-made products are growing and the demand for handmade products is falling. This new trend may result in an increase in volumes but it has created unemployment.
