Hit by economic slowdown and poor infrastructure, industrialists from Jharkhand’s key industrial districts—East Singhbhum, West Singhbhum, and Seraikela-Kharsawan—are looking to the newly formed state government for revival and support.
The industrial zones of Adityapur, Gamharia, Kandra, and Chandil have been grappling with inadequate infrastructure, including poorly maintained roads, lack of bridges, erratic water supply, and unreliable power. Entrepreneurs in these regions hope the new administration will address these issues and work toward improving the state’s industrial ecosystem.
The slowdown in production at Tata Motors and the closure of major industries like Tayo Rolls have significantly impacted the industrial belt. Ancillary units and vendors in the Adityapur Industrial Area are facing one of their toughest periods as Tata Motors continues to cut production to cope with the downturn.
“The government must immediately implement a robust rehabilitation and resettlement (R&R) policy to facilitate smoother land acquisition for industries,” said N K Singhal, a city-based entrepreneur. He added that mining licenses for essential raw materials such as iron ore and coal must be expedited to support steelmaking and allied industries.
Financial stress is a critical concern for ancillary units. Around 300 ancillary businesses have secured loans from public and private banks over the last five years, but more than 100 of these units have been declared non-performing assets (NPAs), according to industry insiders.
“We urge the government to work with banks to provide a six-to-eight-month moratorium on loan repayments and prevent further units from being classified as NPAs,” said a functionary of the Adityapur Small Industries Association (ASIA) and an ancillary owner.
Officials and industrialists alike are optimistic that initiatives such as the Special Economic Zones (SEZs) and the Adityapur Auto Cluster Limited can accelerate development under a stable and development-focused government.
“A government with a clear vision for industrial growth is the need of the hour,” said an official from the Jharkhand Industrial Area Development Authority (JIADA). It has been coordinating with ancillary units to secure some relief from banks but acknowledges its limited capacity to address the broader crisis.
The sprawling Adityapur Industrial Area, located in Seraikela-Kharsawan, is home to 900 units, including 11 large-scale, 64 small-scale, and 166 micro-industries. Prominent companies such as Usha Martin Group, RSB Group, and Tata Steel Growth Shop (TGS) have operations in this belt. Notably, 20 industries from this region export products to markets in the USA, Australia, and Europe.
However, the financial struggles of several units have forced entrepreneurs to mortgage personal assets, including homes and valuables, to keep their businesses afloat. Despite these efforts, the fear of bank auctions looms large over many.
Recognizing the severity of the situation, officials from ASIA have announced plans to meet the Chief Minister to discuss the pressing challenges faced by the industrial sector. They intend to present a comprehensive update on the issues and propose solutions to revive the region’s industrial ecosystem.
“The state government’s active intervention is critical for the revival of the industrial belt, which serves as a backbone for Jharkhand’s economy. Entrepreneurs and industry leaders remain hopeful that the new administration will prioritize their concerns and drive meaningful change for the betterment of the sector,” said an industrialist.
