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Unit 13: Small Scale Industrial Sector in India

In 2007, when SAD-BJP Government returned to power, Sukhbir Singh Badal prepared a Notes
blue print for the development of the industries. He moved from city to city with a laptop
and made presentations to the gatherings of the industrialists but nothing practical
happened. The only creditable achievement of the SAD-BJP Government was the
establishment of refinery at Bathinda. The state has not seen any mega project under the
private sector or the public sector. The present state of the industries in Punjab is that it has
become a ‘bimaru’ state. The small scale industries like the bicycle industry, auto-industry,
nut bolt and other engineering industries are in a bad shape. The steel industry of Mandi
Gobindgarh is also in shambles. A number of furnaces and the steel rerolling mills in
Mandi Gobindgarh and Ludhiana have been closed down.
The export of the bicycle parts and other engineering industries has gone down and China
is giving tough time to the small scale manufacturers. The local manufacturers of the cycle
parts have started importing cycle parts from China and are selling the same with their
stamps. Many of the industrialists have opened their offices in China.
Avtar Singh, General Secretary, Chamber of Industrial and Commercial undertakings,
Ludhiana strongly feels that the new industrial policy is biased towards the large scale
units. Moreover, the Government has given only lip sympathy in the past and has not
devised any plan for the revival of the sick industrial units. There is no provision for
enhancing the basic infrastructure in the focal points and the industrial areas. The small
scale industrialists are very sore over the indifferent attitude of the state government, he
said.
The industrialists are upset over the fact that while chalking out the new industrial policy,
the zoning of the state has been done keeping in view the interests of the bigger units and
those who are close to the Government. They cite the example of Muktsar and Bathinda
have been extended the benefits of zone I – (border areas) because some bigger units are
coming up in Bathinda and Lambi area of the chief minister. The vat and power benefits in
the zone I are for thirteen years whereas in the other zone these benefits are for seven
years.

Interestingly all those close to the deputy chief minister are making huge investments in
Madhya Pradesh. They have enjoyed the benefits in Punjab from both the SAD-BJP
Government and Amarinder Singh government. These groups are estimated to be making
investments worth about 10,000 crore in Madhya Pradesh. One of the groups is developing
a textile park in Lambi area of Muktsar and the land belonging to the ruling party
politicians has been sold to this group. Another major industrial house Chairman of
which is holding an important position in the Punjab Planning Board is making investments
worth ` 700 crore in Madhya Pradesh. Kamal Oswal, Chairman of the Nahar Group who
is the industrial advisor to the chief minister Punjab is the only person who has announced
expansion plan of ` 1500 crore in Punjab in response to the new industrial policy. Only
time will tell when the actual investment takes place.
Tall claims of providing cheap and adequate power supply are also proving hollow as
there is a shortage of power in the state and the power tariff in Punjab is the highest.
Moreover, the land prices in Punjab are beyond the reach of the industry, so no immediate
plans for the investment in new industrial units. The state government will have to review
the policy and form a new policy for the revival of the sick industries.
Source: http://www.punjabnewsline.com/punjab/new-industrial-policy-anti-small-scale-industry/
80608

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