Two tiles units cut production,eye Gujarat

“Owners feel it is better to shift from UP. In Gujarat,there is no harassment; we get easy land and smooth functioning. Our representations are timely attended,unlike in UP,” P D Singh,vice-president,Kajaria Ceramics Limited,said.

The major problems faced by these manufacturers are availability of soil as well as raw material. With the Mining Department prohibiting mining,soil is procured from Rajasthan. “It is not a viable option for us due to freight charges. We met senior officials in Lucknow two months ago to explain the situation but there has been no solution,” Singh said.

“We are eyeing Gujarat and even Rajasthan for our next expansion but certainly not UP. In Gujarat,you need not spend a single paisa extra and there is no harassment. Here we are tied up with bureaucracy which has increased manifold,” he said.

Kajaria is in business since 1987 and has a turnover of Rs 1,400 crore.

Orient Bell Limited,too,is worried as last year its plant ran at only 84 per cent capacity. This year,it is expected to operate at only 75 per cent capacity. “It is not viable in a competitive market to procure soil from Rajasthan and manufacture tiles in UP. The state government is not taking initiative,” Anil Aggrawal,Chief Operations Officer (COO) at Orient Bell stated. He said the company had shelved its programme for expansion. The company is operating in Sikanderabad since 1981 and has an annual turnover of Rs 700 crore.

Both Kajaria and Orient Bell account for nearly 2,000 direct employees and generate indirect employment for another 5,000 people.

The issue was brought to the notice of BJP MLA from Sikanderabad Vimla Solanki by local industrialists. She raised the issue during Question Hour during the monsoon session. However,Minister of State (independent charge) for Small Scale Industries Bhagwat Saran Gangwar denied any competition from Gujarat. He also said both the units have not submitted any information that they are lagging behind Gujarat.