Shifting of small-scale industries to Konkan results in losses

When the small and medium-scale industries relocated to Konkan from Nashik, Thane, Pune and Belapur, they were not prepared to incur losses.

Two years ago, the state drew up a policy to decongest the Nashik, Thane and Pune corridor by giving incentives such as cheap land and labour to small and medium-scale industries to relocate their units to MIDC in Konkan region.

But the projects are stuck because the state government has failed to plead their case with the Centre for environment clearance. This had led to losses of around Rs10,000 crore in the last two years, said sources in the industries department.

The Union Ministry of Environment and Forest (MoEF), which has imposed a moratorium on mega projects in Konkan region, has not spared small and medium-scale industries. Recently when a state delegation brought it to the notice of the MoEF officials, they said that cannot have separate laws for mega and small projects.
Moreover, the business units engaged in chemicals, processing and horticulture processing, hotel industry has been tagged hazardous.

The MoEF advisor Nalin Bhat said the moratorium on projects in Konkan was to safeguard the ecology and state government should take up the issue with the Centre.

“We can understand the moratorium on projects such as mining which cause air pollution or projects along the coastal stretch which require reviewing to guard the environment. But how does a small-scale MIDC project threaten the Konkan belt?” asked Amey Joglekar, an investor.

What has upset the small-scale industrialists is the state government’s complacency in pleading their case with the Centre.
“The Centre’s refusal to give environmental clearances has brought the entire industrial growth to a standstill,” said a senior secretary in Mantralaya.