Landing' trouble for MSMEs; small industries in Telangana crying foul
Hyderabad: Small industries in TS are crying foul over the land allotment policy of the state government. Applications filed by small industries have been kept pending for the past one year, while big industries are getting their permits within weeks.
The small industries have sought over 870 acres to set up their units and promised employment to 25,000 people. But there has been no response from the government so far.
The Medium, Small and Micro industries sector (MSMEs) is already in a deep crisis in TS, with thousands of units shutting shop over the last five years due to high power tariffs and power holidays.
Though the power situation has improved after formation of Telangana state in June 2014, there has been no initiative from the TS government to revive the sector, which plays a major role in providing employment to a large number of people.
The TS government launched TS-iPASS, the new single window online industrial approval policy last August. As part of this policy, industries are being given all approvals within two weeks.
The government has already approved industrial investments worth Rs 33,101 crore in six phases. These investments are from big companies in software development, solar power, pharmaceuticals, plastic pipes, granites and seed processing units.
However, applications submitted by small industries are pending. Nearly 1,500 applications were received from entrepreneurs to set up small industries during the last two months.
They proposed to invest Rs4,000 crore and some had even offered to pay reasonable prices for land around Hyderabad. But the government kept these applications pending on the ground that there is limited availability of land on the city outskirts and big industries may require the land in future.
“We are not opposed to priority being given to big industries in allotment of land. But the government should strike a balance. Only big industries cannot provide employment to all. Small industries are required to complement them,” said K. Prabhakar Rao, representative of MSMEs Federation.
Moreover, the small industries argue that they are not seeking land for free or at huge concessions and are willing to pay reasonable price fixed by the government.
Industry department officials who scrutinised these applications found that it requires nearly 900 acres to approve small industries, besides another 700 acres for green belt, roads, common facilities and other infrastructure facilities.
The government is searching for unutilised lands on the city outskirts for small industries since the existing land bank has been reserved for big industries.
