MSMEs cancel plan to shift out of Gujarat after govt assurancehttps://indianexpress.com/article/india/msmes-cancel-plan-to-shift-out-of-gujarat-after-govt-assurance-5058053/

MSMEs cancel plan to shift out of Gujarat after govt assurance

The government officials said that they are allotting plots in the MSME park within the Sanand GIDC-II at a concession rate of Rs 3,010 per square metre.

msme, small business, enterpreneurs, gujarat, madhya pradesh, sanand gidc, sanand industrial association, indian express
These small entrepreneurs had alleged that the BJP government in the state was ignoring their interest and giving preferential treatment to Japanese industrialists.  (Express Photo by Avinash Nair)

Small and medium entrepreneurs in Gujarat, who were unhappy with the state government for “ignoring” their interest, have dropped their plan to visit Madhya Pradesh in search of an alternate location to set up their businesses after receiving assurances from the government.

“We decided not to travel to Indore today after officials from the Gujarat Industrial Development Corporation (GIDC) assured us that they will look into our demands and sort it out within three months,” said Ajit Shah, president of Sanand Industries Association (SIA) that represents micro, small & medium enterprises (MSMEs) who have been allotted industrial plots in the Sanand GIDC-II.

These small entrepreneurs had alleged that the BJP government in the state was ignoring their interest and giving preferential treatment to Japanese industrialists.

“In a meeting held on Thursday, officials told us that they will look into our demands case-by-case, which includes changing the date of allotment of plots that will waive off the penalty imposed on us and providing a plot for the SIA to set up its office,” Shah said.

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According to the SIA, the GIDC had imposed a penalty on several enterprises for not commissioning their units within the stipulated two years after the allotment of the plots. This penalty together with the interest had touched estimated Rs 300 crore in 2015.

Senior GIDC officials, who addressed the media on Friday, said that out of the 2,200 plots in Sanand GIDC-II, 627 plots have been allotted which includes 15 plots to large industries.

“Of the 612 plots allotted to MSMEs, 108 plots are functional, while 103 are under construction. It is just 87 individuals who are part of the SIA who have not utilised their plots and have been penalised for the same,” said Chintan Akhani, Director (Notified Area), GIDC.

The government officials said that they are allotting plots in the MSME park within the Sanand GIDC-II at a concession rate of Rs 3,010 per square metre.

“This is less than the allotment price of Rs 3,750 per square metre. We are also offering plots at a concession rate of Rs 2,100 per square metre in the women entrepreneurs park within Sanand GIDC,” said Akhani. He denied that the government was providing special benefits to the Japanese firms.