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Sluggish industries a splitting headache

Updated: May 22nd, 2017, 16:41 IST
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Bhubaneswar: Even though the state government is taking steps to spur industrial growth of the state, the ground reality portrays a completely different picture when it comes to functioning of the units in various industrial estates or areas set up across the state.

Data obtained from Industries department reveal that around 53 per cent of the industrial units that have been allotted land and shed at various industrial estates in the state have either failed or are yet to launch their projects. Some of these units have even misutilised the land provided to them – a serious issue which the state government seems to have ignored.

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The Orissa Industrial Infrastructure Development Corporation (Idco) has set up as many as 106 industrial estates, some of which have been set up in strategic locations across state in 1981. Necessary infrastructure and other amenities have been made available at these industrial estates while developed plots and built-up sheds were provided to encourage entrepreneurs intending to set up projects/units.

However, statistics from the Industries department available with Orissa POST is not encouraging.

The data reveals that Idco has allotted 5,540 acre of land and 1,473 sheds to 5,181 industrial units to help them set up their projects. However, only 2,414 industrial units – only 47 per cent of the total units – are functioning in these industrial estates.

Of the remaining 53 per cent (2,767 units), data reveals that as many as 1,446 units are lying vacant and 803 have been closed. Efforts are yet to be made for their revival. On the other hand, 518 units have also misutilized the land allotted to them.

Statistics reveals that highest of 17 industrial clusters have been developed in Khurda district including the major ones like Bhubaneswar, Mancheswar and Chandaka clusters.

Data says out of the 89 industrial units that have been allotted land and shed at Bhubaneswar industrial cluster, 45 are working and 20 have misutilised the land. Moreover, 24 units have been shut down in the Capital’s industrial estate.

Out of 674 units in Mancheswar industrial estate, 279 are functioning while the land for 153 are lying vacant or are going through moratorium phase. Similarly, 75 units have been closed down.

Likewise, of 470 units at Chandaka industrial estate, only 176 are functioning and 206 are yet to become operational. Moreover, 49 units have misutilised their land while 39 have been shut down at the industrial cluster.

Industrial units in other clusters in the state also report similar status.  

The state government has implemented flagship programmes like Land Bank scheme and Industrial Policy Resolution (IPR)-2015 to boost industrial growth. However, the meagre presence of industrial units in industrial estates somehow indicates failure of the government to ensure an environment conducive to entrepreneurial ventures.

It also shows absence of a strong law and a mechanism to take action against the proprietors failing to utilise the land within the stipulated period or have misutilised the land.

According to official statistics, action has been taken only in 154 entrepreneurs for non-utilisation and misutilisaiton of land allotted to them.

Though industries secretary couldn’t be reached for his comments, Minister Nirajnan Pujari said he would be able to comment only after going through the details of issue.

Meanwhile, an Idco official, on condition of anonymity, said that though state government is taking steps for cancellation of lease of those who have failed to utilise the land, the process gets delayed due to legal hurdles. The government is working towards finding a solution to it, he added.

Sudarsan Maharana, OP

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