The entrepreneurial prospects of local industries are likely to look up with the UT administration asking industrialists to spell out their demands pertaining to need-based changes.
The development holds significance as in the past the administration has given cold shoulder to such demands of industrialists, and this is for the first time that the authorities have made an effort to reach out to them.
The finance department has written to the Industries Association of Chandigarh asking them to furbish complete details of need-based changes which are required in Industrial Area, Phases 1 and 2. The industrialists have been demanding for increase in the ground coverage of the plots. At present, 75% of total area can be covered in plots measuring up to one kanal, while the permissible limit of ground coverage for plots ranging between 2 to 4 kanal is 60%. In plots above 4 kanal, 40% of the total area can be covered.
The administration had set up Phases 1 and 2 of the Industrial Area during the 70s on an area measuring 147 acres. According to the official figures, there are a total of 1,884 plots in both phases, of which 381 plots are of 5 marla, while 10 and 15 marla plots are 443 and 180, respectively. There are around 700 plots measuring 1 kanal and above.
The other demands include nod for setting up temporary sheds for the purpose of storing material and enhancement of the floor-area ratio (FAR). The industrial association has been demanding enhancement of FAR from 1 to 2. As of now, the administration charges Rs 200 per square feet for enhancing FAR from .75 to 1.
Welcoming the move of the administration, Industries Association of Chandigarh president Arun Mahajan said, “The administration has never approached us to know our demands. It has always been the other way around. It’s a good sign and shows that the administration has taken a considerate view of our representations submitted in the past.”
He further urged the administration to consider all their demands as it would inject a new lease of life to the industry, which otherwise was going through a rough phase.
The industrialists have also been pressing for the implementation of much-publicised Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. Before the MSMED Act came into being, only manufacturing was allowed in industries. However, with the MSMED Act coming into being, the word industry was replaced by enterprises in which services along with manufacturing were allowed. Service activities under the Act include sale of motor vehicle, retail sale in non-specialised stores with food etc, retail sale via stalls and markets, hotels and motels, store, warehousing, hospitals and motion picture projections.