The Greater Peenya Industrial Area (GPIA) has turned into an embarrassment for the government and a nightmare for the entrepreneurs.
It was supposed to be dream project—one that would provide the much-needed push to revive industrial growth in Peenya—but the Greater Peenya Industrial Area (GPIA) has turned into an embarrassment for the government and a nightmare for the entrepreneurs.
More than 15 months after paying a huge initial deposit for a plot at GPIA, 462 entrepreneurs are now under a huge debt burden. With no hope of getting a plot in near future, they are preparing for legal action against Karnataka Small Scale Industries Development Corporation (KSSIDC), which had collected the deposit.
“It is almost one-and-a-half years since the entrepreneurs paid initial deposit for plots at the proposed GPIA, but there is no sign of getting the plots even now,” said Prakash Raikar, president of Karnataka Small Scale Industries Association (KASSIA).
According to Raikar, the small entrepreneurs, who deposited the money by borrowing loans, have been ruined due to KSSIDC’s blunder of inviting applications for the plots even before the land was acquired by the Karnataka Industrial Areas Development Board (KIADB).
Most of the entrepreneurs are presently running their units in rented sheds in Peenya Industrial Area. The KSSIDC mess has delivered a huge blow to their future plans, as they continue to bear the burden of rent, pay interest on the loans procured for the plot. S Subramanyam, president of Peenya Industries Association (PIA), said due to the inordinate delay, many of their plans became redundant.
To rub salt into the injury, the KSSIDC is not ready to pay either an interest on the deposit or refund it, adds Subramanyam.
The entrepreneurs have paid 25 % of the value of the plot as deposit.
At the rate of Rs300 per sq.ft, the land value fixed by KSSIDC, the entrepreneurs have paid Rs2.25 lakh to Rs30 lakh as deposit for plots with dimensions ranging from 3000 sq.ft to 40,000sq.ft.
About 143 acres of land was identified near Nelamangala for the expansion plans of PIA two years ago.
Thanks to strong assurances from the then chief minister BS Yeddyurappa and the then principal secretary, industries and commerce, VP Baligar, the project was put on fast-track and KSSIDC, in a hurry, issued notification for the allotment of plots.
According to Subramanayam, the exit of VP Baligar dealt a blow for the project since KIADB has not been able to complete the land acquisition.
The PIA, at its meeting on September 16, decided to take legal action against KSSIDC if the latter fails to produce decisive results within 3 weeks.
L Nagaraj, general manager of KSSIDC, agrees that it was a mistake on part of KSSIDC to have collected deposit even before getting possession of the lands from KIADB.
However, Nagaraj said he is hopeful on allotting the plots within three to six months.
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