Rajasthan dons mantle of UP?s business rival
RAJASTHAN HAS started offering industrial land at concessional rates to lure small-scale entrepreneurs away from Uttar Pradesh.india Updated: Aug 04, 2006 01:16 IST
RAJASTHAN HAS started offering industrial land at concessional rates to lure small-scale entrepreneurs away from Uttar Pradesh.
A delegation of senior officials from the Rajasthan State Industrial Development & Investment Corporation Ltd (RIICO) carried out a presentation for UP’s small-scale entrepreneurs last month at Mussoorie in neighbouring Uttaranchal to showcase the investment opportunities in Rajasthan. The presentation was made by the RIICO officials to the small-scale entrepreneurs attending the annual general meeting (AGM) of the Indian Industries Association (IIA) in Mussoorie.
“The RIICO is offering industrial plots costing Rs 1,500 to Rs 2,000 per square metre under its promotional schemes. The Uttar Pradesh State Industrial Development Corporation (UPSIDC) is offering plots whose average rates in its industrial estates start at Rs 2,000 per square metre,” IIA president Tarun Khetrapal told Hindustan Times.
He said one of the major advantages of having a base in Rajasthan was the availability of 24-hour power supply.
“In Uttar Pradesh, one cannot be certain about uninterrupted power supply even in an industrial hub such as Noida. Plus, there are the usual law and order problems confronting the State,” he said.
The Uttar Pradesh Government’s recent announcement to offer huge incentives to large industrial houses committing themselves to a minimum investment of Rs 100 crore in the State was unlikely to bring in substantial investment, he said.
“The economy of a State depends on the health of small-scale units. The owners of small scale units in the State might plan new projects in other states where land and infrastructure is being offered at far cheaper rates than in Uttar Pradesh,” he said.
The Rajasthan Government, under its “Rajasthan Investment Promotion Scheme—2003” (which is valid up to March 2008), acquired 51,299 acres of land, of which 34,941 acres has been developed in industrial areas. The total size of land acquired by the UPSIDC in UP and Uttaranchal (assets bifurcation is awaited) is 41,948 acres.
The owners of small-scale units in Uttar Pradesh find Rajasthan a haven for setting up mineral-based units as the State has abundant reserves of sandstone, marble, calcite and feldspar, commented IIA executive director D S Verma.
Right now some of the small entrepreneurs in Meerut have expressed interest in setting up new units in Rajasthan. “Rajasthan also offers a major advantage of having implemented the Value Added Tax (VAT) regime,” he added.