Haryana industries fearful of SEZ growth

Not only farmers, even the existing industries in Haryana are worried over the decision of the government to encourage the special economic zones (SEZs) in the state. In Haryana, 29 SEZs have got formal approval, 28 got in-principle approval and 7 SEZs have been notified.

This is one of the largest number of SEZs coming up in any state of India. In a discussion with the Director Industries, Haryana, D R Dhingra, on the sidelines of meeting of sub-committee of State Level Bankers' Committee for Export Promotion for Haryana, the representatives of the industries manifested their reservations over the plethora of industry that would come as a consequence of the incentives offered to new investments in SEZs and make the competition tougher.

According to Pardeep Tayal, the president of Panipat Exporters Association, it was not feasible for the entrepreneurs to relocate themselves in the SEZs to draw the tax concession.

The meeting was mainly attended by the rice exporters, handlooms and textiles exporters, medicines and scientific instruments exporters.

In the year 2006-07, the major share in exports from the state was of steel (22 per cent), followed by basmati c rice (18 per cent), handlooms and handicrafts (15 per cent), textiles (8 per cent) and medicines (7 per cent). These items collectively formed 80 per cent of the total exports from the state.

Hisar, Panipat, Karnal, Gurgaon, Faridabad and Sonepat districts contributed 83 per cent to the total export turnover in the state.

According to one of the participant, the policies of the government were drifting more towards the large business houses. Haryana has more than 80,000 small scale industries and 1,250 medium and large units in the state.

The participants alleged that there was a communication gap between the various departments of the government and this was an obstacle in the expansion and development of smaller units.

There were various Central schemes but by the time we get to know about the scheme and approach the authorities, the scheme would lapse, said one of the owner of scientific instruments industry of Ambala.