Delhi: Paper traders ask DDA to ease norms at IFC Ghazipur

With the Covid-19 pandemic adversely affecting paper trade as businesses take the digital route, these traders now want the DDA to allow use of the IFC property for carrying out alternate trades and have raised the matter with DDA

Despite having a two-storeyed warehouse lying unused at the Integrated Freight Complex (IFC) in Ghazipur, Ripin Jain (40), a paper trader at Chawri Bazar, has rented a space in north Delhi to operate a unit packaging and manufacturing items like paper plates and cups.

Over 600 paper traders were allotted plots at the IFC Ghazipur in 2004-5. (Raj K Raj/HT)

His is not a one-off case. Of the 622 other paper traders who were allotted plots at the IFC Ghazipur in 2004-05 by the Delhi Development Authority (DDA), as part of efforts to decongest the Walled City, many claim they are unable to put it to full use because of a rider -- part of the Master Plan of Delhi-2021 -- that mandates the use of the property only for storing paper and not for related trades.

With the Covid-19 pandemic adversely affecting paper trade as businesses take the digital route, these traders now want the DDA to allow use of the IFC property for carrying out alternate trades and have raised the matter with DDA vice-chairman Manish Gupta during his visit to the complex last week.

Piyush Jain, president of Delhi Paper Merchants Association, said, “There has been a gradual decline in business over the years due to the shift towards the digital mode. But the last two years have pushed many businesses to the brink of closure, as there has been a sharp decline in business. Traders have no option but to invest in alternate businesses. We have requested DDA to allow us to use the space we have at Ghazipur for the same.”

Dalip Bindal (61), whose family has been in the paper trade for over six decades, said that a sizeable portion of his business came from sale of paper for printing of journals, magazine, calendars, posters, pamphlets. He also received orders for office stationery and paper for printing wedding cards and other invites.

“Due to the restriction on the number of guests at weddings, the wedding card business is now almost over. Now people prefer (to send invites over) WhatsApp. Very few magazines and journals get printed now as everything is online. Demand for stationery, especially in offices, has also reduced due to work from home, and online classes in schools and colleges,” said Bindal, vice president of All India Federation of Paper Traders.

He added, “The demand for paper, folders etc has reduced even in government offices as these are gradually shifting to the online mode, especially post pandemic.”

Ripin said that the industry has seen a sea change in the last two decades, noting that paper traders have diversified and moved to related services like packaging and manufacturing paper-based items such as napkins, plates, cups,etc, and converting big paper rolls into sheets or smaller rolls. “We can’t survive on paper trade alone. We have to diversify and look for other options. The problem has become acute after the pandemic, as the paper trade has been badly hit. But we can’t do any other activity other than paper trade from the space we have at Ghazipur. Due to this, a majority of traders have rented out space in various parts of Delhi and also in other states,” said Jain.

IFC Ghazipur lying unused

In early 2000, the DDA decided allot plots measuring 50-200 sqm to paper traders to shift their godowns from the popular Chawri Bazar to Ghazipur, in a bid to decongest the areas. Traders had to pay between ₹10,000-19000 per sq.m for the space, said Piyush Jain.

Piyush Jain said that of the 1,000 plots available at IFC Ghazipur paper market, 623 were allotted to eligible traders to construct two-storeyed warehouses, including a basement. “We have spent so much money on the space at Ghazipur which we are unable to use to our benefit. The government talks about ease of doing business, but here we have the property but we can’t use it despite paying for it,” said Jain.

Of the 623 plots allotted to traders, nearly 80% have already built their facilities in the premises. Traders, however, said most of these properties are being underutilised due to the stringent restrictions on its use.

Rajkumar Bindal (62), who has been in the paper trade for nearly four decades, said the lack of provisions to transfer the property also adds to the problem. “The new generation doesn’t want to get into the family trade or there have been cases where the owner died and there is no one to continue the business. In such cases, the property at Ghazipur is lying idle. We can’t sell it, rent it out to anyone who is not in paper trade or do any other activity. What alternative do we have?” said Bindal.

DDA officials admitted that traders have been pushing for use of the IFC property for alternate businesses for a while now. “They had raised the matter at the meeting. We have asked them to give us some data to show the decline in business. We can’t allow them to use machines etc, as the land-use of the space is commercial. Moreover, the space was earmarked for paper trade, if other activities are allowed then where will other paper traders go?” said a senior DDA official.

The traders said that they are planning to conduct a survey soon. “We have over 1,600 members. We are now trying to get a survey done to get an idea about the decline in paper trade. But it is not easy to get an exact figure,” said Piyush.

AK Jain, former planning commissioner at DDA, said that the land-owning agency needs to take a liberal approach in this case, keeping in mind the changes brought about in businesses due to the use of technology. “The world over, trade has changed in the past few years. Though the land was given to these traders at a concessional rate, DDA needs to take a liberal approach towards deciding the land use. There is a need to provide flexibility in land use so that traders benefit from it and the IFC can be utilised to its full potential. While allowing different land use, the only thing to be kept in mind is to ensure that there is no fire hazard and polluting industry,” said Jain.