Sanand, the poster boy of Gujarat's investment climate, is now facing major revolt by local industries, who claim that they are not getting necessary clearances from the state government and are being fined for no fault of theirs.
Close to 200 industrial units have threatened to quit Gujarat for greener pastures, for doing business in Madhya Pradesh (MP). However, government officials say that only a section of investors in Sanand are complaining as they had bought land to sell it at higher prices, but are unable to sell as cheaper land is available.
Ajit Shah, president of Sanand Industries Association (SIA), informed media persons on Tuesday that Gujarat Industrial Development Corporation (GIDC) had allotted land to nearly 500 units in auto ancillary, pharmaceutical and packaging sector in 2011. Units were supposed to start production in two years. However, GIDC had not provided necessary infrastructure that could enable these units to start production. It was in 2015 that necessary infrastructure was provided. GIDC has charged a penalty of Rs 15 lakh (on an average) from units here for delay in production. Players blame bureaucratic apathy for the delay and demand that the fines be withdrawn. The matter is now pending in Gujarat High Court.
"We have been requesting the government to withdraw the penalty as the delay was on the part of government. However, our requests are not getting any attention," said Shah. He claimed that while Indian and foreign Multi National Companies (MNCs) are getting favourable response from the government, local SMEs are being neglected. Close to 200 companies from Sanand have surrendered their land to GIDC over the past two years and are now planning to quit Gujarat for Madhya Pradesh (MP) with an investment of Rs 1,000 crore and generating 8,000 jobs.
D Thara, MD and VC of GIDC, told DNA that Sanand has attracted investors from other states as well and so the stand by SIA officials is belittling the efforts made by the Gujarat government to promote SMEs. "We have also waived penalty on a case-to-case basis. Close to 120 units have started production and another 100 are under construction. About 300 units have been allotted land in the past eight months. All serious investors, even from states like Maharashtra, Tamil Nadu and Madhya Pradesh, are operating in Sanand," Thara said.
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