More than a year after it came into effect (on April 1, 2008), the Uttarakhand government’s hill industrial policy for small units has failed to trigger industrial activity.
Under the Hill Industrial Policy 2008, which offers a slew of sops including heavy transport subsidies, not a single manufacturing unit has been set up in the hills to date with government support. On the other hand, the Industries Association of Uttarakhand (IAU), an organisation of SMEs, claims that three or four small units have been set up in Pauri through its efforts.
The government, however, claims that it has received investment proposals worth Rs 300 crore under the policy, but for certain reasons it has not been able to allot land to industrialists. “We are yet to allot land to investors,” admitted P C Sharma, principal secretary, Industries.
He would not say why land was not allotted despite new guidelines having been issued by the government last year.
“The government must take a proactive stand on industrial issues. But the response of the industries department is very indifferent,” said Pankaj Gupta, IAU president.
Non-availability of raw material is another reason for poor response. Under the policy there is no transport subsidy if raw material is brought from outside the state, experts said.
Uncertainty over the Central industrial package, which is expiring on March 31, 2010, has also hampered industrial growth. Despite state government’s repeated requests to the Centre asking it to extend the package, the Centre has maintained silence over the issue.
