As tax holidays lapse, industries are checking out

But since then, new investments have slowed down significantly. Higher echelons of the Government are worried about the actual cost benefit of the incentive-triggered growth. There are reports about investors no longer eager to make investments after initially showing interest. Units, especially those belonging to pharma companies, that have gone into production appear to be here just for the tax sops. Once the tax holidays lapse, there is a possibility of an exodus or the natural death of a few units.

Recalls P K Dhumal, former CM: “I had worked hard to convince Prime Minister Atal Bihari Vajpayee to grant central industrial benefits to Himachal, despite him facing pressures from Punjab and Haryana. The Government that followed us did not take proper advantage nor did they plan for creating basic infrastructure for long-term growth. Instead the Government indulged in corruption and arm-twisting of the investors without caring about long-term relations.”

Additional Chief Secretary (Industry), Himachal, Parminder Mathur admits, “We have lost time in putting things in order. We can only hope that the steps underway will help sustain the investment drive.”

“The biggest problem faced by industrial units is that of poor physical infrastructure in the form of bad roads and lack of accessibility, both by road and Railways, for faster movement of goods. Steps that have been taken recently are not enough,” says Arun Rawat, general secretary of the Baddi-Brotiwala-Nalagarh Industrial Association. Admits Anil Khachi, Director of Industries, “We have not been proactive in building infrastructure and creating an environment suitable for long-term sustenance of the industry. Some valuable time has been lost. Yet, a lot of planning is already underway and things will improve gradually.”