Premium
This is an archive article published on July 23, 2009

Industrial estates’ no to infrastructure levy by govt

The state government’s decision to charge Rs 9 per square metre as annual development charge for critical infrastructure development is being vehemently opposed by all industrial estates in Gujarat.

The state government’s decision to charge Rs 9 per square metre as annual development charge for critical infrastructure development is being vehemently opposed by all industrial estates in Gujarat. There are over 100 industrial estates in the state,of which 27 are notified.

The state government has prepared a Rs 3,000-crore plan to upgrade infrastructure of its old industrial estates within the next three years. The government wants the companies to pay Rs 9 per square metre to the GIDC for developing infrastructure. With this,the government wants to cover the entire industrial estate by installing WiMax,a broadband Internet service by BSNL.

The estates have opposed this,as BSNL has failed to install it successfully in other places. “WiMax technology from BSNL is a flop. No one wants it here and so,everyone is opposing it. Further,there is no information as to how long they will be paying this development charge. The period till which the companies are required to pay Rs 9 is also not decided. There is no clarification on that,” said Babubhai Patel,the president of Federation of Industry Association (FIA),which is an umbrella organisation of the industries.

Story continues below this ad

The associations are unhappy with the way the Gujarat Infrastructure Development Corporation (GIDC) has done construction in the past. “GIDC has done extremely poor quality work in the past and therefore,most of the associations have said they will not allow the GIDC to conduct any development work. Instead,they have decided to do the work themselves,” said Patel,who is also the secretary of Nandesari Industrial Estate.

Under this project,the estates have to bear 15 per cent of the cost of development and up-gradation. While the Gujarat Industrial Development Corporation (GIDC) provides 35 per cent of the fund,the government provides 50 per cent.

“Industrial estates are in a bad shape,but we don’t want GIDC to do any kind of development work. We have written to the government,saying that the association will do the entire development work. The state government intends to encourage associations to take up specific infrastructure development projects in their respective industrial area,which are need-based and critical,but not covered under plan schemes,” Patel added.

The government has asked the GIDC to come up with a solution for this.

Stay updated with the latest - Click here to follow us on Instagram

Latest Comment
Post Comment
Read Comments
Advertisement
Loading Taboola...
Advertisement