Investments pouring into Kutch

<div class="section1"><div class="Normal">AHMEDABAD: Inspite of stiff competition from other states in the incentives-driven investment sweepstakes, the arid landscape of Kutch is getting a definite makeover with investments worth around Rs 6,000 crore in the offing.<br /><br />Figures made available by iNDEXt-B indicate that nearly 80 projects worth around Rs 500 crore, mainly small ones, have already been implemented so far while 71 projects worth around Rs 4,285 crore are under various stages of implementation.<br /><br />The Kutch Collector’s office, on the other hand, estimates that over 18 big projects worth over Rs 774 crore have already been commissioned, with 55 projects worth Rs 1,356 crore under construction and another 803 projects worth around Rs 2,130 crore in the pipeline.There are also 730 new projects of less than Rs 25 lakh investment also coming up in Kutch.<br /><br />Investments are pouring in sectors like edible oil, refinery, iron and steel, ceramic, mineral-based projects, engineering, consumer durables as well as textiles. These include investments by players like Ajanta group, Welspun group, Saw Pipes, Videocon, LG Electronics, Hindustan Lever Ltd, Shah Alloys, Mann Industries and Iffco, to name a few.<br /><br />“Kutch provides an ideal location given the logistical support that the port infrastructure at Kandla and Mundra provides, good road connectivity and now water availability through the Narmada pipeline,� points out Pradeep Sharma, collector, Kutch.<br /><br />The industrial development of Kutch also seems to be galvanising airline operators like Air Deccan, which runs a no-frills airline, into tapping corporate traffic by connecting Bhuj to Ahmedabad shortly. But the deadline for commissioning of projects to avail of tax breaks nearing to a close in December 2004, is threatening to play spoilsport.<br /><br />“Many of the 65-odd units implementing projects worth Rs 4,500 crore are getting jittery as they feel they may not be able to finish in time,� said a top industries department source. Already, the state industries commissionerate is flooded with queries on whether the period would be extended further.<br /><br />According to principal secretary (industry and mines) D Rajgopalan, a two-year extension of the deadline and benefits similar to those being made available to the northern states had been sought.<br /><br />Sharma feels even a one-year extension would make a difference in triggering larger inflows. “While the lack of clarity on excise exemption and deadline have resulted in some long-gestation projects shying away, the minimum investment of Rs 20 crore is a major deterrent for small projects,� he adds.<br /><br />According the Gandhidham Chamber of Commerce and Industry, only Rs 1,500 crore of investment of the total Rs 4,500 crore in the pipeline will materialise in case the extension does not come through. Said its president Ashok Sharma, “As many as 50 investors are sitting on the fence. They may not invest if the incentive period is not extended.�<br /><br />Admitted state industries minister Anil Patel, “We are keeping our fingers crossed. Things will move only after the elections. We will again ask the Centre to at least allow units implementing projects to be given the Central tax incentive to ensure they do fly to other states.�<br /><br />Agrees former industries minister Suresh Mehta, who belongs to Kutch, “Big investor-manufacturers at least cannot be expected to start production so soon as many legalities have to be completed. Initially, very few investors came in because the entire infrastructure was disrupted due to the quake. Now that infrastructure is in place, they want time.�<br /><br /><formid=367815></formid=367815></div> </div>