Even as the Haryana government focuses on inviting big investors ahead of the mega investor summit, ‘Happening Haryana’ in Gurgaon, the response to the industrial plots of Haryana State Industrial Infrastructure Development Corporation Limited (HSIIDC) has been low, with only 323 applications for 777 plots in industrial estates across the state.
The HSIIDC had invited applications for 198 plots of varying land sizes in Industrial Estate (IE) Kundli, 183 in IE Faridabad, 115 in IE Panipat, 96 in IE Bawal, 75 in IE Narwana, 57 in IE Karnal, 14 in IE Rai and few others in IE Manesar and Panchkula in October, 2015. The last date for submission of applications was November 30, 2015.
However, only 323 applications were received for the plots, out of which 115 successful allottees have been declared and the draw of lots are slated to be held on March 3, while many others were still under scrutiny.
Panchkula’s Information Technology (IT) Park spread over 74 acres in Sector 22, Panchkula, received only five applications. “The demand is more for smaller plots, while there are not many takers for larger plots. Out of the total 28 plots, there are nine still vacant. We will again invite applications for the left ones,” said HSIIDC assistant manager R N Gupta.
While the response has been lower than last time, the officials highlight that it was primarily due to the increased land prices, as the cost of enhancement was also added to the current land prices.
“The conditions are not viable for industrialists to purchase plots in Haryana. The land prices have gone up, the collector rate is high and the power tariff has increased as compared to other neighboring states. For example, the current cost is around Rs 2.4 crores per acre in Barwala (Panchkula), while in Dera Bassi (Punjab), one can purchase an acre plot for Rs 50 lakh,” said Vishnu Goyal, chairman, Chamber of Commerce and Industries, Panchkula Chapter.
He added, “Moreover, the Haryana government does not allow all service sector companies to purchase these plots in industrial estates, which is another reason, as the manufacturing sector is not doing well currently.” Only identified service sector enterprises are allowed to operate from industrial plots.
New provisions were also added, in order to allow leasing before implementation and no forfeiture of interest on surrender of plots but the response remained dismal.