The problem-ridden leather industry of Kanpur which earns Rs 2000 crore a year in revenues is planning to shift its base to Bihar.
The one-time flourishing industry of Kanpur has of late been facing problems like alleged neglect on part of the state government, extortions and scarcity of power forcing the industry bigwigs to seek an alternative.
Moreover, Bihar's Nitish Kumar government has promised to provide all the facilities required to establish the industry in that state including suitable land at cheaper rates, uninterrupted power supply, a pollution control plant and required subsidies, UP Leather Industry Association Chairman Mohammad Ishaq told PTI.
The assurance was given by a delegation of senior industries department officials from Bihar who recently visited Kanpur, he said.
A representative group of the Kanpur leather industry is now slated to visit Bihar on October 15 to work out a detailed programme in this direction, he added.
UP Leather Industry Association is concerned over the alleged harassment of tannery owners in the name of pollution control, shortage of power supply and the rising cases of 'extortions' allegedly by government officials.
Imran Siddiqui, Chairman, Northern India Employers Association said these problems have pushed almost 100 tanneries to the brink of closure, threatening to render almost 10,000 labourers unemployed.
With the industry moving out of UP the state government will not only lose a major source of revenue but also of employment, he said.