E-Paper
Political instability, subsidy boom main cause of industries? doom
POLITICAL INSTABILITY and subsidy allurement have been the two main causes of sickness or closure of industries in the State during the past few years and it would be unjustified to blame non-availability of power to industries as the cause of their sickness.
POLITICAL INSTABILITY and subsidy allurement have been the two main causes of sickness or closure of industries in the State during the past few years and it would be unjustified to blame non-availability of power to industries as the cause of their sickness.
Indian Industries Association (IIA) president Tarun Kumar Khetrapal, expressed the above view while addressing the first session of the concluding day of the two-day workshop on ‘Sickness in the SSI Sector — Issues and Remedies’ here on Tuesday.
He said non-availability of power to small or large-scale industries had not been the main cause of sickness or closure of these industries. There were several other factors responsible for the doom of industries in this metropolis.
Khetrapal said the IIA, after fighting 15 years’ battle with the State government, succeeded in getting continuous power supply for industrial areas. “At present, all units situated in the defined industrial areas have no power problems.”
He said only those industries, which were set in the residential areas flouting all rules, were deprived of continuous power supply. As per government order, all industries having 75-power load were connected with industrial feeders and were enjoying continuous power supply, he added.
For industries in residential areas nothing could be done except that they should be advised to shift to industrial areas, he said.
He said industries could only flourish amidst political stability and definite government policies, which had been lacking in the State. Similarly, most of those industries, which were started only for availing government subsidy without considering basic infrastructure available there for industrial health, were closed soon after the subsidy was stopped. “This has been the fate of industries set up in Rania and Chaubepur industrial areas,” he said.
Citing an example, he said between 1970 and 1990 hundreds of small-scale units were set up due to ‘subsidy boom’. Entrepreneurs minted money under the ‘quota permit’ and never ventured to make their units viable and soon faced closure.
“However, with globalisation the industries have come in their real form of producing quality goods to compete with MNCs and with other global companies. Now entrepreneurs have left dependence on subsidy and have invested their funds. This gesture of industrialists has reduced closure rate of industries,” he added.
Khetrapal said it was foolish to say that Kanpur was a dying city. He said how could an industrial city be described as dying when it was pioneer in leather goods, specially saddlery production in the world. Besides, it was number one in detergent and packaging sectors, he added.
He said the city and the State as a whole had great potential for industrial development, but one would have to change one’s attitude towards starting an industry.
He suggested that new entrepreneurs could well think of setting up of food processing industry, which had a rosy future.
