Vidarbha getting neglected: NCC past president | SupportBiz

News

Vidarbha getting neglected: NCC past president

 
The government of Maharashtra has largely ignored the problems faced by industry in the Vidarbha region where growth has been stymied due to high cost of finance, exorbitant power rates and non-availability of land at reasonable price for setting up new units.

Major problems faced by the industry according to the NCC:

  1. The recent hike in interest rates by the Reserve Bank would add to the burden of investments in business.
  2. Funds for expansion and modernization in the region will get pushed to the back burner.
  3. Commercial power rates in the region are very high and output seldom matches the requirements
  4. The cost of production in Vidarbha (which contributes over 67% of the state’s combined output) is Rs.2.30 per unit while end user costs for commercial power is as high as Rs.10 per unit
  5. Maharashtra Industrial Development Corporate arbitrarily increased guidance value of land in the area.
  6. As a result, cost of setting up plants has gone up substantially, leading to industry postponing investments
  7. The region is rich in natural resources but lacks infrastructure in terms of factories to process them
  8. Hence, all resources from the region gets transported outside for processing, viz., paddy, cotton, iron ore etc.
  9. No administrative redress at the government level to entrepreneurs in the region. People travel 850-kms to Mumbai to get paperwork done.