Industrialists in Yamunanagar and Jagadhri towns of Haryana have urged the state government to provide better infrastructure and other facilities.
The twin towns are famous for plywood, metal and aluminum utensil industries. Together they generate a turnover of over Rs 1,000 crore annually.
Surrounded by Himachal Pradesh and Uttrakhand, the area saw migration of 20-30 per cent industries from the region to neighbouring states to avail of the tax benefits.
Speaking to Business Standard, Ashwani Goel, president, Jagadhri Confederation of Commerce and Industry, said not just poor infrastructure, but the region is also suffering from unscheduled power cuts. This has forced the industrialists to rely more on captive power that adds to their operating costs.
Bharat Garg, general secretary Jagadhri Metal Association, said while states like Madhya Pradesh, Gujarat and Tamil Nadu had done away with value-added tax on aluminum utensils, the Haryana government still imposes four per cent VAT.
The region accounts for six per cent of the total domestic aluminum utensil industry.
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The industrialists have urged the government to take steps for industrial growth in the region.
They have also sought more space in the industrial area developed by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) to accommodate more industries in the area.