The Chandigarh administration is once again in the firing line of the union ministry of home affairs (MHA) for creating “uncertainty” by not taking decisions pertaining to industry.
In a written communication to the UT administration on Tuesday, MHS’ joint secretary (UT) has reiterated that, to govern industrial area, there must be some industrial policy; and he has also asked the administration to take “firm decisions” instead of “making industrialists run from pillar to post”. Further, to ensure that industrialists are not harassed, the ministry has asked the administration to review its organisational set-up.
The ministry had recently convened a meeting with the administration officials and representatives of a joint forum of Industries Association of Chandigarh (IAC) and the Chamber of Chandigarh Industries (CCI) to resolve their issues. An industrialists’ delegation comprised of IAC president Arun Mahajan, CCI president Sandeep Sahni; HS Mamik, chairman, industrial policy and MSMED Act, IAC; and entrepreneur Pankaj Khanna was present at the meeting.
The major bone of contention is that the administration has not implemented the Micro, Small and Medium Enterprises Development (MSMED) Act 2006, on the grounds that the use of land in city is governed by the local urban planning act called the Capital Act, besides rules and building bylaws framed thus.
Besides, the industry forum has been at loggerheads with the administration over misuse and violation notices, transfer of leasehold plots to freehold, non-formulation of a new industrial policy, not allowing need-based changes and not giving the nod to enhancement in floor-area ratio (FAR).
The administration has repeatedly been asked to formulate a new industrial policy as per the MSMED Act, as has already been done by the government of the National Capital Territory of Delhi.
The MSMED Act: Bone of contention
*The major feuding point between te industry and the UT administration remains non-implementation of the Micro, Small and Medium Enterprises Development (MSMED) Act 2006.
*In the Act, the word ‘industry’ has expressly been replaced by ‘enterprises’, in which services along with manufacturing are allowed.
*The Delhi government has, in fact, gone further and defined ‘industry’ and ‘enterprise’ as one entity. The MHA joint secretary (UT) is of view that same be followed by administration.
*The Act indicates that micro enterprises have an investment cap of `25 lakh while small enterprises and medium enterprises have a cap of `5 crore and `10 crore, respectively.
*The UT administration argues that the use of land in Chandigarh is governed by the Capital Act.