Haryana guidelines on industrial plots may hurt SMEs

2,400 applications have been scrapped and fresh allotment will happen post e-auctions

The guidelines issued some time back by the Haryana government for allotment of industrial plots in the Industrial Model Townships developed by the Haryana State Industrial and Infrastructure Corporation across the state may hamper the growth of micro, small and medium enterprises (MSMEs) in the state.

HSIIDC has also scrapped nearly 2,400 applications for allotment that have been pending since 2010, and fresh applications will be invited through an e-auction.

The applicants had deposited 10 per cent of the cost of the plots and the state government has offered them a refund without interest.

“Small entrepreneurs had appeared for the interviews, invested the bid fee and were expecting to get the land shortly. This decision of is not good for the development of industry,” said Subash Chander, general secretary of the Faridabad IMT Industries Association.

 HSIIDC has devised 13 criteria to screen applications and a minimum score of 45, 35 and 30 marks has been set as a benchmark for different categories of industrial estates.

The academic qualifications and experience of promoters have been accorded the highest weightage. Land utilisation, level of proposed investment, scope of employment generation, resource position, shift from non-conforming or rented area, income tax payments, past performance, expansion of project, start-up projects and women entrepreneurs would be the other yardsticks for objective evaluation. The marks secured in the objective evaluation will determine whether the applicants are eligible for the e-auction.

Although Vineet Garg, managing director of HSIIDC, described this as an initiative to bring transparency in the allocation, industry feels otherwise. Land prices have shot up in Haryana in the past few years due to proximity to the National Capital, making it difficult for private players to invest.

HSIIDC has 30 industrial estates and is developing two more at Sohna and Kharkhoda. The land available for immediate use is about 5,000 acres and another 10,000 acres are in the process of being acquired, Garg added.

He said close to 2,400 applications pending for allotment since 2010 have been scrapped and fresh applications will be invited through an e-auction.

Garg said that if the feedback received is not positive, the criteria can be amended. “We are not rigid and can revise it further if we get a tepid response in the e-auction,” he said.

P K Jain, founder-president of the Gurgaon Chamber of Commerce and Industry, and chairman of Assocham’s MSME committee, said, “If the government wants to really achieve success of ‘Make in India’ the norms should be relaxed. Think of the plight of those who were in the queue for five years and their applications got rejected. One cannot ensure transparency in e-auction too, as the government authorities can reject any bid on any ground.”