Manufacturing industries in Chandigarh facing neglect

INDUSTRIAL AREA UPADATE ? I

Chandigarh has managed to capture the attention of the corporate sector and fascinated the realtors in the past five years, but has failed to acknowledge contribution of its manufacturing industries which are in a sorry state.

Figures provided by the Chandigarh industries department reveal that the industrial area in Chandigarh spanned over 1,450 acres dots around 2,100 units, mostly small-scale industries (SSIs) with just 7 being medium and large scale units.

The Chandigarh industry department officials reveal that a few years back, the industrial area had around 2,950 small scale units, out of which 15 were large and medium scale units. Now, the number has dwindled to just 2,100 units.

Even as the paucity of space for expansion of industries in Chandigarh has been cited as the main reason for industrialists fleeing the city, the apathy of the Chandigarh administration was also responsible for the exit of industries. Talking to Business Standard, industrialists from Chandigarh on condition of anonymity maintained that step-motherly attitude by the UT administration towards the manufacturing sector was indeed sounding a death knell for the manufacturing industry in Chandigarh.

The industrialists maintained that the conversion policy implemented by UT administration remained effective from September 2005 till October 2008 has also been an impediment for growth of industry in Chandigarh.

With the Chandigarh administration earlier allowing conversion of industrial plots of more than 2 kanal areas into commercial areas has seen around 150 industrial plots applying for conversion and is an indication how industries’ downfall continues.

The reason for dwindling number of industrial units is not only lack of expansion but also lack of incentives for industries in Chandigarh. Growth of industry for the last few years has been limited in Chandigarh as it is not an industry led city because of the limited space envisaged for industrial development at the time of original planning of the city.

Also, with neighbouring states like Himachal Pradesh offering tax holiday for the industries, it has resulted in industries shifting to Himachal.

Out of a total of about 2,100 small scale industries in Chandigarh, about 40 per cent are ancillary units producing components for the tractor industry around Chandigarh. The light engineering industry is heavily represented, other industrial units produce mainly industrial fasteners, electrical, electronic items, machine tools, pharmaceuticals, plastic goods, sanitary fittings, steel ,wooden furniture and food products.

Even the third phase of industrial area, which is coming up in 152 acres, does not seem to help prevent the migration of industries outside Chandigarh.

According to officials, the administration is mulling to encourage promotion of the information technology industry in the third phase as these units are non-polluting and require less space.

(Tomorrow: A lowdown on the industrial area in Panchkula)