Thousands of small industrial units operating under Ludhiana’s mixed land use (MLU) areas are staring at an uncertain future as the policy that permits their operations is set to expire on September 30. Industrialists fear regulatory action if the government does not extend the policy, while many fear that shifting their units to designated industrial areas could impose a financial burden they cannot afford.
Harpal Singh Bhamber, former president of the Janta Nagar Small Factories’ Association, said relocating his four units, which manufacture handles and brakes for larger cycle manufacturers, would cost around ₹4 crore.
“If I take a loan for the relocation, the annual interest alone would be around ₹40 lakh. Our total annual profit is around ₹30-35 lakh. I will go bankrupt if that happens,” he said.
Bhamber said the Punjab Pollution Control Board (PPCB) could initiate action against units if the MLU policy was not extended, as they would no longer have the regulatory cover to operate in areas designated for mixed land use. He urged the government to accord industrial-area status to Janta Nagar and other such localities that have developed around established industrial clusters.
“Most of these localities have homes alongside cottage and small-scale factories. They are already industrial areas in practice. A change in their status on paper can secure the future of these factories and the workers employed there,” he said.
{{/usCountry}}“Most of these localities have homes alongside cottage and small-scale factories. They are already industrial areas in practice. A change in their status on paper can secure the future of these factories and the workers employed there,” he said.
{{/usCountry}}Gurmeet Singh Kular, president of the Federation of Industrial and Commercial Organisation (FICO), said the absence of any assurance from the government ahead of the September 30 deadline had left around 10,000 units across 72 localities in uncertainty. “These units form an important part of Ludhiana’s industrial supply chain, manufacturing small components used by larger bicycle and sewing-machine manufacturers. Their closure will affect both the units themselves and the larger factories dependent on them for essential parts,” he said. Kular estimated that the units collectively employ lakhs of workers.
The MLU policy was introduced by the Shiromani Akali Dal government in 2008 after industrialists complained about difficulties in operating units established in residential areas. It was initially introduced for 10 years, during which the government was expected to develop an alternative industrial area around Ludhiana to facilitate the eventual relocation of these units.
Dhanasu was identified as the proposed alternative, but the industrial area could not be developed within the stipulated period. The Congress government subsequently extended the MLU policy by five years in 2018. The AAP government granted another three-year extension in 2023, which expires on September 30, 2026.
Kular said the government now needed to pursue a two-pronged approach. An immediate extension would provide relief to existing units, while a dedicated industrial area around Ludhiana could offer a long-term relocation solution. He said the state budget for the current year made no provision for developing such an alternative industrial zone.
“We have met state industries minister Aman Arora a few times on the issue. He told us that the matter was being considered and would be resolved soon. But nothing has been done yet,” said Kular. “The government can at least extend the policy immediately and then work towards a permanent solution,” Kular added.
Pollution board chief engineer RK Ratra said the board would act according to the government’s decision. “If the policy is extended, we will carry out our duties to monitor pollution in the MLU areas. If it is not extended, we will take action against violations,” he said.