Industrialisation suffers in Uttarakhand

The June 16-17 deluge, which devastated a major portion of the hills of Uttarakhand, might not have cast its spell on the industrial units established in the plains, including Haridwar and Pantnagar. But the process of further industrialisation in the state has taken a hit, especially at Sitarganj, where a new industrial estate is being developed by the government-run State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL).

Official sources said SIDCUL had not signed a single MoU as far as new units at Sitarganj industrial estate are concerned since June. The Sitarganj industrial estate in Kumaon region has been officially christened as SIDCUL-Phase-II.

But experts say the overall weak industrial scenario in the country is creating a big hurdle in the new investments in the state. "The rupee has depreciated considerably and the economic scenario is very weak, due to which the industrialisation process is suffering. And of course, floods and monsoon rains never favour industrialisation," said Pankaj Gupta, president of the Industries Association of Uttarakhand (IAU).

In the month of April, the state government had started the process of allotting industrial plots at SIDCUL-II under the mega industrial policy, where it is offering a slew of sops for new units that entail an investment of more than Rs 75 crore. The government is also offering 50 percent rebate on the stamp fees, 1 percent relief in central sales tax (CST) and other incentives.

"We have received only one new proposal for Sitarganj this month. But yes, it is also true we have not signed any MoU since last month," said SIDCUL Managing Director Shailesh Bagoli. However, Bagoli said the floods had not harmed the industrial estates of Pantnagar and Haridwar.

Much before the fury of floods created havoc in the state, SIDCUL had signed a couple of MoUs with companies like Coca Cola and DS Group. The Coke, which is looking forward to set up a bottling plant at Chharba, near Dehradun, came under fire from environmentalists, who opposed the MoU, saying it would adversely affect the ground water as well as the greenery of the region. After the deluge, suspense still surrounds the new Coke project at Chharba, where the beverage giant has promised to invest Rs 600 crore.