The announcement of attractive industrial packages by Punjab Government is posing a threat to industrial growth in the neighbouring State of Haryana.
After the announcement of attractive packages for fresh industry in Punjab made by the Punjab Government in the month of June this year, the entrepreneurs of neighbouring Haryana are now thinking of investing in new ventures in Punjab. According to sources in the Haryana Government, several industrialists, who were planning to set up their industry in Haryana, are now switching over to invest in Punjab.
The industry in Haryana has already been facing the heat from adjoining Himachal and Uttaranchal States for the past several years and most of the progressive industry in Haryana has already shifted to these States due to attractive packages offered to them.
Haryana Government was expecting huge investment in the State and announced to develop large number of special economic zones (SEZ) and industrial model townships (IMT) in the past few years to attract investors, but not a single project could be developed properly to bring fresh progressive industry in the past few years. Most of the large players likely to set up industry in Haryana not only switched over to the adjoining hill States of Himachal and Uttaranchal impressed by the attractive sops offered to them but also a large number of existing industrial units in the States turned sick due to lack of facilities, erratic policies of the State Government, shortage of power and non-availability of land.
General secretary of Haryana Pharmaceutical Association TC Kansal said, when industry packages including waiver in excise duty and income tax relief from the date of commissioning units were offered to the entrepreneurs in hill States in 2003, a large number of small and medium units from Haryana and Punjab started shifting to Himachal in spite of the lacking facilities like infrastructure, transport services and easy connectivity with the entire country through road and rail services. However, Union Government had withdrawn all packages in 2010 and facilities like capital subsidy was also finished on January 6, 2013 as a result the fresh investment in Himachal came to a halt now leaving a boom for Punjab.
Kansal said as many as 90 pharmaceutical units in Haryana, including over a dozen units at Ambala had to down their shutters or shifted their units to the adjoining hill States to enjoy incentives and keep themselves above water. He added, Punjab’s announcement to provide incentives to the entrepreneurs to set up their industry in the State would further stagnate industry in Haryana forcing them to migrate to Punjab.
According to an official of Industry Department in Punjab, attractive rebates would be offered to entrepreneurs on central excise, VAT and other benefits for setting up industry in the border districts and Kandi area in Punjab, besides a single window system, land banks to make available land, exemption from electricity duty, stamp duty, property tax and special incentives to fresh investors in IT, farm equipment food processing, electronics and hardware industries.
Sources revealed Himachal Government is also likely to introduce fresh policy for industry to face the challenge from Punjab in future.
Gian Chand Aggarwal, president of Ambala Scientific Manufacturing Association having nearly 800 small and medium units said, nearly 50 per cent units are facing losses due to non-cooperative attitude of the State Government and recent announcement by Punjab Government to offers special incentives have attracted a large number of local scientific goods manufacturers, who are now planning to shift their units from Ambala to adjoining Punjab.