U'khand reserves 25% land for small units

When a high-powered committee recently cleared proposals of 67 small industries in Uttarakhand, a new beginning was made for the micro, medium and small enterprises (MSME) sector in the state.

All the 67 industries are being allotted 1,000 sq meter of land in various industrial areas being developed by the State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL), a state government enterprise.

All these industries are setting up new units or are expanding their existing units. The new land allotment policy for industrial development in Uttarakhand envisages special focus on marginal and small industries.

Under the new land allotment policy, 25 per cent of the available land in any particular area would now be reserved for marginal and small industries. Also, 25 per cent of the available land will be reserved for industries which can promote special industrial products giving impetus to scientific entrepreneurship and technology development of backward areas.

Rest of the 50 per cent of the land would be allotted through the regular system, but with with certain clauses.

The sanctioning authority of the land allotment is being done through the high-powered committee headed by the Industries Minister, a portfolio currently being held by Chief Minister BC Khanduri.

However, sources added that there are chances that the committee can relook the policy. This is because the prices of industrial plots have risen considerably after the policy has been operationalised.

An industrial plot will now cost 125 per cent more than the last highest bid price in that particular notified industrial area. This is being interpreted as nearly 200 per cent increase in the prices of industrial land since the last bidding process in 2006.

The investment in the MSME sector is set to double this year with the state government taking steps to attract industries to the hills.

The government projections shows that investments this year are likely to cross Rs 1,500 crore. This is almost double the Rs 828 crore registered last year.

The investment in MSME sector in the first quarter of 2008 touched Rs 360 crore. Based on this figure, the government is expecting the investment to cross Rs 1,500 crore by the fiscal-end.

The government has been effectively enforcing MSME Act in the state to boost investment in the sector. In 2001, nearly 15,282 units were installed in the state in the sector. But 2006-end, the figure rose to 18,699. The government is keen to attract investment in the hills, for which it has declared a special package.

The hallmark of the new industrial policy, which comes into force from April 1, 2008, is that it doles out special power tariff rebate up to 100 per cent. It is for the first time that the government has announced both industrial and power policies together so that they complement each other.