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
Industrial Policy, 2012 that promised land transfer to
new units for a mere 15% of the present market value.
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
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".
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.