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Exorbitant land price a hurdle in way of setting shops in Ranchi, claims SME units
When the micro, small and medium enterprises (MSMEs) are struggling to survive, the Jharkhand state industries department has adopted a careless approach to implement the industrial policy. As a result, the fate of many upcoming units in Ranchi hang in balance.
As many as 40 MSME units are waiting for over two years to set up shops in the industrial areas of Ranchi under the Ranchi Industrial Area Development Authority (RIADA) but they are unable to pay the exorbitant prices for taking land on lease, as reported by TOI.

The MSME units had applied for land in Tupudana, Kokar and Tantisilwai industrial areas which houses closed units as of today. They made their claims under the Jharkhand Industrial Policy, 2012 that promised land transfer to new units for a mere 15% of the present market value.

The entrepreneurs claimed that RIADA demanded present market value for the lands not following the Jharkhand Industrial Policy (JIP). RIADA may transfer the leasehold rights of a land to the MSME applicant for 15 per cent of the present market value under part 12.11.2 of the JIP.

However, RIADA managing director Puja Singhal blamed the JIP policy and said, "Though the JIP enabled the allotment of lands housing closed units at 15 percent cost nearly two years ago, we are yet to receive a government order for enactment of the same". 

In such circumstances, RIADA cannot allocate lands at the aforementioned rate, she added. 

On the other hand, defending Singhal's claim, Industries secretary, Himani Pandey, stated that the order has already been issued six months back.

"The order took some time to be issued for necessary clarifications and was eventually rolled out six months ago," added Pandey as per the TOI report.

The entrepreneurs are worried over delay in the implementation. The Federation of Jharkhand Chamber of Commerce and Industries has pressed for the immediate implementation of the revised policy.

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