This Diwali is going to be a special one for all those who set up new units in Uttarakhand under the special integrated hill industrial policy.
A new official report reveals a total of 488 new units involving investments of about Rs 60.8 crore were set up in the first two quarters of the financial year 2012-13, giving the much-needed flip to industrial development.
A total of 1,727 people were employment in these new units, the report said.
“The policy, which has the vast potential to change the economic scenario of the backward hilly region, continues to grow despite the fact it has not bee able to garner support from the new government. The policy is creating new entrepreneurship skills among the people,” said a government official.
The policy, which came into effect in 2008, was given shape to encourage the growth of micro, small and medium enterprises (MSMEs).
Since it came into effect, a total of 3,575 units entailing investments of Rs 450 crore have been set up in the hilly region till September this year, the official said, thus creating job opportunities for nearly 12,564 people.
According to official data, a total of 643 units were set up in the first year 2008-09 with an investment of Rs 58.49 crore, creating jobs for 2,225 people. Prior to this, the total investments in the hills were merely Rs 25.3crore.
As the policy gained momentum, investments, too, gained speed.
In the year 2009-10, a total of 706 units were set up entailing an investment of Rs 115.8 crore. This created job opportunities for nearly 2,797 people.
In 2010-11, about 827 units were established with an investment of Rs 69 crore where 2,738 people got employment. Investments this year has been low mainly because of torrential rains, landslides and floods in the hills.
In the last financial year 2011-12, a total 911 unites were established with investments of Rs 105.7 crore. This created an employment of 3,077 people.
These units were set up mainly in floriculture, herbal, food processing, hotels, floor mills, packaging, mineral water, handloom, pharma, steel fabrication and auto repairing sectors.
After facing criticism, the government last year brought a series of amendments to give impetus to the hill development policy. However, industrialists are not satisfied with the government's current policy.
“There is an urgent need to create a good business environment in the hills. But the response of the government is very indifferent,” said an industrialist.
