Many industrial parks in Telangana lack basic infra

Telangana govt can contribute 20% matching grant wherever the IALAs are not able to take up the development works with their contribution. This enables the effective usage of Central grants for the development of existing industrial parks - K Sudhir Reddy, President, Telangana Industrialists’ Federation

Hyderabad: Several existing and upcoming industrial parks developed by TSIIC (Telangana State Industrial Infrastructure Corporation) in and around Hyderabad are lacking certain basic infrastructure like storm-water drainage system, widening of existing roads which are not enough to meet the increased traffic, underground power lines, water supply, and common facility centres.

All the industrial parks were notified as industrial area local authorities (IALAs) to facilitate the better management of civic amenities, infrastructure and property tax collections. Though there is effective management of the industrial parks in Telangana, the industry bodies of the State seek the governments to further improve the amenities in these parks.

Speaking to Bizz Buzz, Telangana Industrialists Federation (TIF) President K Sudhir Reddy says, “We have proposed the State government to empower the IALAs/ service societies to take up the upgradation of the internal infrastructure facilities/ civic amenities in the existing industrial parks under the Central government-assisted schemes.” The Union government is implementing Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) to enhance productivity and competitiveness of the MSMEs, and the India Infrastructure Project Development Fund Scheme to develop the quality and quantity of the PPP (public-private partnership) projects. Under these schemes, the Central government provides 50-80 per cent grant if necessary matching grants are arranged by the stakeholders. Some of the IALAs have good financial resources and reserves. They can be allowed to use the reserves of industrial units to meet the matching grants from IALAs to take up the infrastructure development works.

“The Telangana government can contribute 20 per cent matching grant wherever the IALAs are not able to take up the works with their contribution. This enables the effective usage of Central grants for the development of existing industrial parks,” Sudhir Reddy said, adding that the State’s performance is poor in utilising the Central grants under these schemes.

“There is no budgetary support to meet the 20 per cent matching grant to utilise the Central grants. The State government should provide proper budgetary support to utilise these grants. Karnataka, Tamil Nadu, Gujarat and Maharashtra have been effectively utilising the Central grants under the MSE-CDP and IIPDF schemes to develop many clusters in their States,” he said.

The TIF President also proposed to conduct a workshop of IALAs/ service societies to strengthen them for better performance by delegating certain powers to them. The IALAs do not have enough powers to execute the works in their respective areas thus hampering the developmental works though enough funds are available with the IALAs.