Uncertainty among investors as industrial land being offered in undeveloped areas

Nishikant Khajuria
JAMMU, Mar 6: Due to inept handling of Land Allotment Policy by the Department of Industries, there is uncertainty among some prospective investors in Jammu and Kashmir, who are being offered land in the undeveloped notified Industrial areas.
Unlike other parts of the country, where fully developed industrial land is offered to the prospective investors for establishing their units, SIDCO and SICOP are offering the industrial land without any requisite infrastructure, which is likely to cause delay in setting up of the projects.
As no time limit has been set to hand over the developed land to the investors, it is feared that some investors may opt to shift their projects to other parts of the country.
More ironic is the fact that SIDCO and SICOP are asking the allottees to deposit full land premium along with three years’ lease rent and maintenance charges within 60 days to avoid cancellation of the land allotment order despite the fact that the said land is without basic infrastructure like approach roads, power supply etc.
It may be recalled that following Administrative Council decision, the J&K Government had accorded sanction to the adoption of Jammu and Kashmir Industrial Land Allotment Policy 2021-30, vide order number 65-IND of 2021, dated 24-03-2021.
The policy is aimed to provide an efficient and transparent mechanism for industrial land allotment in a time bound manner. For the purpose, Industrial zones were identified in the Union Territory and the applications were invited from the prospective investors for allotment of industrial land.
However, before developing the land with required infrastructure such as roads, power etc, the SIDCO and SICOP have started collecting land premium and lease rent from the applicants without any tentative schedule of handing over of developed land for setting up industrial units by the prospective investors.
For example, sources said, identified industrial land at Kartholi and Meen Charakan in Samba district is semi-hilly without road connectivity and power infrastructure and as per the PDD authorities, it will take at least two years to supply power to these areas after commencement of the work in this regard.
“It is a matter of great concern that SIDCO and SICOP have already started the process for the allotment of land in Industrial areas as notified `undeveloped’ and issued the land allotment orders by demanding the full premium along with three years lease rent and maintenance charges, with the directions to deposit the same within 60 days to avoid the cancellation of land allotment letter in spite of the fact that the said land is without any basic infrastructure like roads/power supply and the approach roads suitable for movement of industrial goods,” said Lalit Mahajan, Co-Chairman of the Federation of Industries.
Moreover, he added, no tentative schedule is being given for the handing over of the developed land for the setting up of Industrial units. “As per the PDD authorities, it will take minimum two years to supply power to these undeveloped Industrial areas after commencement of work on the same whereas on the other hand, new Industrial units are required to start production within three years of its provisional registration,” he told the Excelsior.
Annil Suri, former president of Bari Brahmana Industries Association, said that delay in setting up unit will lead to cost escalation of the project, which may force the prospective investor to shelve the investment plan in J&K.
Pertinent to mention that in other parts of the country, prospective investors are offered fully developing Industrial land to establish their units so that they may start production in time.
When contacted, Managing Director SIDCO and SICOP, Smita Sethi said that the Government was committed to develop the identified Industrial areas and work in this regard was going on.
“DPR and drawing of road network are ready while work on fencing of the areas is going on,” she said, adding that besides establishing power network soon, the identified Industrial areas would be fully developed within one year.
Smita Sethi also sought to clarify that the land allotment was made on the basis of merit cum choice. “So far, we have cleared around 400 land allotment cases in Jammu and 900 in Kashmir seeking consent of the investors and only three of them have applied for change in location,” she said.