Raviprasad Kamila / The Hindu
Mangalore, Aug 13: The Export Promotion Industrial Park (EPIP) being developed by the Government at Ganjimatt near here has attracted many companies, especially ones engaged in information technology, even as infrastructure is yet to be created there.
The EPIP is a concept where a vast plot is developed and recognised by the Government for setting up industrial units, which plan to export at least 33 per cent of their output in terms of value. The Government has to provide infrastructure before the companies start their operations. The Union Government came up with this concept to promote exports.
A senior official of the Karnataka Industrial Areas Development Board (KIADB) here said that the board had acquired 205 acres at Ganjimatt and was in the process of laying roads, constructing drains, and creating drinking water and power supply facilities at the venue. The Government allotted 155 acres of land to 20 companies at this sprawling site. Of them, 17 companies were from Bangalore and one each from Mangalore, Chennai and the U.S. Although a majority of the companies were from the IT sector, two were from hospitality sector, the official said.
The land was allocated to the prospective companies by Karnataka Udyog Mitra, the single-window agency of the Government that clears investment proposals. The first allocation of 25 acres was made to Brigade Enterprises Ltd. of Bangalore on August 4, 2006. The last allocation was made to Vikram Traders of Bangalore on June 3, 2008.
Although two years have elapsed since the first allocation, no company has set up a unit at the park. One of the reasons for it is the laxity on the part of the KIADB in creating infrastructure. In addition, some companies are yet to get clearance from the Union Government to set up sector-specific units to claim tax relief.
The KIADB official said that a power substation was yet to be built to ensure uninterrupted power supply.
Board sources said that steps had been taken to supply water from the Phalguni (also called the Gurupur). “Work on laying the pipeline and supplying water is expected to be completed in one-and-a-half months,” he said.
Kumble Narasihma Prabhu, president, Kanara Chamber of Commerce and Industry (KCCI), wondered how the Government could allot land without creating infrastructure.
He alleged that the Government had allotted sites only to Bangalore-based companies, ignoring local entrepreneurs.
Stating that he smelt a rat in the allocation of sites, Mr. Prabhu said that enough publicity was not given on the availability of land at Ganjimatt. Had there been wide publicity through advertisements, local companies and industrialists would have applied for it.
He wanted to know how only Bangalore-based companies were able to get the allotment.
A Board official said, “We expected many local industrialists to come forward and purchase the sites at Ganjimatt. But none of them seem to be interested. Finally, we forced a local industrialist to apply.”
Not enough demand
The sources said that initially the KIADB planned to develop the Ganjimatt site as a general purpose industrial area on the lines of Baikampady. But there was not enough demand from local entrepreneurs.
The sources said that the KIADB allocated sites to companies on lease up to 11 years from the date of issuing the possession certificate. The governing board of KIADB would take a decision on granting the title deed to companies depending on their operations, sources said.
Under the EPIP, once the KIADB hands over the land possession certificate to companies, they have to start operations in two years. The governing board of KIADB may take a decision to extend the deadline by one year against penalty.
If the company fails to begin operations within this period, the governing board may take appropriate decisions to allocate the site to others, sources said.