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    Hubli Industry

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    mushtaqaralikatti5
    Small-scale industries in Hubli-Dharwad, Karnataka have struggled to grow due to a lack of government support and infrastructure. While over 1,000 small businesses generate Rs. 100 crore daily, they believe they could perform much better with better policies and anchor industries. However, the region lacks industrial and social infrastructure as well as connectivity. Previous government efforts to attract large companies like Hero MotoCorp and Mahindra & Mahindra failed due to inadequate infrastructure and an unsupportive policy environment. The only major company in the area is Tata Motors' research center, and small businesses are hoping it and others will expand local sourcing.

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    Hubli Industry

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    mushtaqaralikatti5
    147 views3 pages
    Small-scale industries in Hubli-Dharwad, Karnataka have struggled to grow due to a lack of government support and infrastructure. While over 1,000 small businesses generate Rs. 100 crore daily, they believe they could perform much better with better policies and anchor industries. However, the region lacks industrial and social infrastructure as well as connectivity. Previous government efforts to attract large companies like Hero MotoCorp and Mahindra & Mahindra failed due to inadequate infrastructure and an unsupportive policy environment. The only major company in the area is Tata Motors' research center, and small businesses are hoping it and others will expand local sourcing.

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    Small-scale industries in Hubli-Dharwad, Karnataka have struggled to grow due to a lack of government support and infrastructure. While over 1,000 small businesses generate Rs. 100 crore daily, they believe they could perform much better with better policies and anchor industries. However, the region lacks industrial and social infrastructure as well as connectivity. Previous government efforts to attract large companies like Hero MotoCorp and Mahindra & Mahindra failed due to inadequate infrastructure and an unsupportive policy environment. The only major company in the area is Tata Motors' research center, and small businesses are hoping it and others will expand local sourcing.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    147 views3 pages

    Hubli Industry

    Uploaded by

    mushtaqaralikatti5
    Small-scale industries in Hubli-Dharwad, Karnataka have struggled to grow due to a lack of government support and infrastructure. While over 1,000 small businesses generate Rs. 100 crore daily, they believe they could perform much better with better policies and anchor industries. However, the region lacks industrial and social infrastructure as well as connectivity. Previous government efforts to attract large companies like Hero MotoCorp and Mahindra & Mahindra failed due to inadequate infrastructure and an unsupportive policy environment. The only major company in the area is Tata Motors' research center, and small businesses are hoping it and others will expand local sourcing.

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    http://articles.economictimes.indiatimes.

    com/2012-02-24/news/31095533_1_industrial-units-smallscale-industries-industrial-map

    Hubli-Dharwad: Growth of SSIs stunted due to lack of government support


    HUBLI: Although over a thousand Small Scale Industries (SSI) are functioning in Hubli-Dharwad twin cities, the second largest conurbation in Karnataka after Bangalore, it has been unsuccessful in making a place for itself in the industrial map of India. These SSIs would be able to perform better in the presence of better government policies coupled with anchor industries. "At present, Hubli-Dharwad SSIs generate a turnover of Rs 100 crore per day. However, businessmen in the region believe that they have the potential to prove themselves if given a conducive environment for growth," said Laxmikanth Patil, president of North Karnataka Small Scale Industries Association (NKSSIA). BOTTLENECKS The industrial units in the second largest conurbation in Karnataka are going through a difficult time due to the apathy of policy makers as well as implementing authorities. Inherent deformities of the region, such as absence of industrial and social infrastructures and connectivity, are holding back Hubli-Dharwad to create a congenial atmosphere for attracting bigger industries. The government tried to address these problems to a certain extent, but was unsuccessful in creating an environment, where large companies could come and make a large investment. BD Kadabi, who runs an SSI unit said, "The government is not foresighted enough to improve the region for the benefit of the industry." He cited "Dhabol-Bangloare Liquefied Natural Gas pipeline project covers a major portion of region. The government should have had thought of encouraging gas-based industries across the region since the move could have been a value addition to the project and would have created an industrial atmosphere in the region." According to businessmen in the region, wrong policies being pursued by the government are a bottleneck in their progress. Existing policy needs to fine-tuning as per area-specific demands and should be implemented judiciously for economic growth. Amaresh Noolvi, who runs a fabrication unit said, "We pay more taxes for the products supplied to local organisations than industries from other states. For example, if South Western Railway procures some products from local industries the latter will have to pay 14 percent value added tax (VAT), but the same companies of other states would pay as low as four percent VAT."

    Small-scale industries are of the opinion that changes should be brought in tax front. Financing through banks and other financial institutions should be made simpler and at marginal interest rate of four to sic percent. "The policy should dictate large and big industries to procure spare parts or services from local small industries. Since the government facilitates them several benefits both on tax and facilities fronts, heavy industries should be forced to extend industrial activities in the region," said Mr Patil of NKSSIA. BIG FISHES IN SMALL PONDS Amidst all these impediments, SSIs in the region are keeping up their performance with the hope of a better future. Small units from sectors such as manufacturing, fabrication, valve, pumps, steel, chemical, pharmaceutical, plastic and paper are operating in industrial layouts. SSI units manufacturing valves and dye-cast are doing good. Many units also export their goods to European countries and the US. However, there very such SSI units, while units in other sectors are striving hard to match them. From the day Hubli airport started operating flights, a few big companies have started to enter the region. However, basic infrastructure like power is holding them back, which is an impediment not only for large-scale industries but also small scale units. LOOSE CHASE All government efforts to attract anchor industries in the region turned futile. The state government tried to persuade Hero MotoCorp, Mahindra and Mahindra etc. to set-up their manufacturing units here. Sensing an opportunity there, a large number of entrepreneurs had planned to start auto ancillary industries in the region. But nothing materialised. The government's failure to woo Tata Motors to set-up its Nano unit in Dharwad further disheartened them. But, trade and industrial bodies of the region are still putting pressure on the government to bring a major corporate in the region. Mr Patil of NKSSIA said, "Without the support of major industries it is hard for small scale industries to survive. We were quite hopeful of Hero MotoCorp and Mahindra and Mahindra setting their units here. Unfortunately, it did not happen due to laxity on part of the government." He further added that the government is planning to bring a unit JCB, a manufacturer of earthmoving machines to the twin city. However, major and medium industries minister, Murugesh Nirani said, "The government had pursued hard to bring Tata Nano, Hero MotoCorp, Honda and M&M to Hubli-Dharwad in the past, but did not get expected results. Honda chose Kolar district and other companies' developed cold feet." RAY OF HOPE At present, Tata Motors is the only major company operating a research and development centre in Dharwad with plans to expand its operations in the next few months. It is the only ray of hope for SSIs. "Tata-Morcopolo Motors, a bus manufacturing subsidiary of Tata group, is holding discussions with local units to associate them in manufacturing of auto components," said Veeranna Savadi, owner of Gandharva Engineering Works. He added that many SSIs are surviving here by getting orders from Banglaore, Pune and Mumbai.

    Mr Savadi pointed out that even if any big company agrees to invest here the government has no land for them. The Karnataka Small Scale Industrial Development Corporation (KSSIDC) needs to come up with new industrial layouts with better basic infrastructure to attract the big investments.

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