Industry representatives feel that unstable Government in the State for past 15 years has been the root cause for lack of development of industries in UP. The problem has been aggravated due to a general apathy towards the concerns of industrialists, lack of political will and interest. This was revealed by Vikas Gupta, Secretary, Indian Industries Association and Manish Goel, Secretary-UP, in an exclusive discussion with Aziz Haider of Hi Time Express.
“When CMs come for 6 months each, what development would you expect?” tells Goel, adding further that the administrative machinery too stops working when it sees differing priorities of every next incumbent in CMs office. “There are no large scale industries in UP. Industries come because of CM’s efforts and due to incentives. Who would come when there is uncertainty even about the tenure of the CM?” adds he.
Goel differs with the advertising campaigns taking place and says that no big group has come during the last 3 years in spite of tall claims by the government. “Other than sugar-based industries, there is no big industry worth mentioning.”
Gupta too agrees with Goel’s view and adds that blame is unnecessarily put on infrastructure. Infrastructure in the state is better or at par with several states like MP, Rajasthan and Orissa, but they have gone far ahead than UP during the past 15 years.
“There are no minerals and no sea shore here. Unless incentives are not given, how could you hope that industries would come,” adds Goel. “If a big industry comes, 50-100 ancilliaries come up as well, which goes on to give a big boost to development in the State.
Owing to incentives and good planning, the neighbouring state of Uttaranchal is growing at a rapid pace. When asked why incentives are necessary for development, Gupta tells that they become essential because the neighbouring states are giving such incentives. “Uttaranchal is developing extensively because of tax benefits and power availability. With great competition in the market, the incentives give a major leverage over others in competition,” he says. Gupta points out as to why some body would install an industry in Bareilly or Saharanpur when Pantnagar and Haridwar are at a stone’s throw distance, which are giving much more incentives.
Goel too rues that political will is missing. “If Hyderabad and Bangalore are developing it is not because the industrialists there are better. It is the manpower from UP that goes there to work. Government is not paving the way for equal opportunities. The State is the biggest consumer market in the country. The Government’s revenue comes through taxing those products, hence it is not bothered.”
As regards to UP Development Council, the industry representatives opine that when those industrialists themselves are not making investments in the State, who will? “Focus is not industrialization. A mini cabinet has been made how to route the papers through another channel. Development Council has been made to support particular people and that’s it.”
In spite of all these so-called efforts no big house has come to UP till now in spite of the fact that the State has tremendous potential for food processing and several other industries. “If one big industry like Tatas or Birlas come, this would give fillip to ancilliaries as well,” adds Gupta.
Indian Industries Association, an apex body comprising more than 5000 members, mostly from small and medium industries, is set to organize India Food Expo for another year from 1st to 4th February, 2007. More than 400 stalls have been sold and participants from as far as Thailand, Pakistan, Angola, Uganda, Afghanistan and even SSI manufacturers from Kashmir have participated in the past.
Talking about it, Vikas Gupta says: “This exposition gives us an opportunity to showcase the products to the rest of participants and visitors.” He further tells that IIA was the pioneer in organizing such an exposition in UP for the first time. “In Lucknow, this event has grown extensively both in terms of participation and business,” tells Goel, adding further that in future melas and exhibitions are going to play a key role in building a bridge between manufacturers and buyers.
“When CMs come for 6 months each, what development would you expect?” tells Goel, adding further that the administrative machinery too stops working when it sees differing priorities of every next incumbent in CMs office. “There are no large scale industries in UP. Industries come because of CM’s efforts and due to incentives. Who would come when there is uncertainty even about the tenure of the CM?” adds he.
Goel differs with the advertising campaigns taking place and says that no big group has come during the last 3 years in spite of tall claims by the government. “Other than sugar-based industries, there is no big industry worth mentioning.”
Gupta too agrees with Goel’s view and adds that blame is unnecessarily put on infrastructure. Infrastructure in the state is better or at par with several states like MP, Rajasthan and Orissa, but they have gone far ahead than UP during the past 15 years.
“There are no minerals and no sea shore here. Unless incentives are not given, how could you hope that industries would come,” adds Goel. “If a big industry comes, 50-100 ancilliaries come up as well, which goes on to give a big boost to development in the State.
Owing to incentives and good planning, the neighbouring state of Uttaranchal is growing at a rapid pace. When asked why incentives are necessary for development, Gupta tells that they become essential because the neighbouring states are giving such incentives. “Uttaranchal is developing extensively because of tax benefits and power availability. With great competition in the market, the incentives give a major leverage over others in competition,” he says. Gupta points out as to why some body would install an industry in Bareilly or Saharanpur when Pantnagar and Haridwar are at a stone’s throw distance, which are giving much more incentives.
Goel too rues that political will is missing. “If Hyderabad and Bangalore are developing it is not because the industrialists there are better. It is the manpower from UP that goes there to work. Government is not paving the way for equal opportunities. The State is the biggest consumer market in the country. The Government’s revenue comes through taxing those products, hence it is not bothered.”
As regards to UP Development Council, the industry representatives opine that when those industrialists themselves are not making investments in the State, who will? “Focus is not industrialization. A mini cabinet has been made how to route the papers through another channel. Development Council has been made to support particular people and that’s it.”
In spite of all these so-called efforts no big house has come to UP till now in spite of the fact that the State has tremendous potential for food processing and several other industries. “If one big industry like Tatas or Birlas come, this would give fillip to ancilliaries as well,” adds Gupta.
Indian Industries Association, an apex body comprising more than 5000 members, mostly from small and medium industries, is set to organize India Food Expo for another year from 1st to 4th February, 2007. More than 400 stalls have been sold and participants from as far as Thailand, Pakistan, Angola, Uganda, Afghanistan and even SSI manufacturers from Kashmir have participated in the past.
Talking about it, Vikas Gupta says: “This exposition gives us an opportunity to showcase the products to the rest of participants and visitors.” He further tells that IIA was the pioneer in organizing such an exposition in UP for the first time. “In Lucknow, this event has grown extensively both in terms of participation and business,” tells Goel, adding further that in future melas and exhibitions are going to play a key role in building a bridge between manufacturers and buyers.
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