Big companies queuing up to invest in Uttarakhand

By Vipin Agnihotri

Big companies such as Tata Motors, Bajaj Auto, Hero Honda, Ashok Leyland and Nestle are queuing up to invest in the state of Uttarakhand. In terms of statistics these companies have invested around Rs 30,000 crore in the state since 2003.

The irony is that state doesn’t have any more land in industrial estates. There is a long waiting list of companies, but state can’t accommodate everyone. If experts are to be believed, the industrial estates of Haridwar, Udham Singh Nagar and Dehradun have emerged as the main industrial centres.

In the last few years, Uttarakhand has clocked a state domestic product growth rate of 10 percent, placing it among the high growth states in the country. In my recent visit to Uttarakhand I notice that State Infrastructure and Industrial Development Corporation (SIDCUL) has most utilized unused government land for the purpose. The supply of such parcels of land has now run out.

Because of this, government can either turn away investors, or it can start doling out agricultural land. Initial signs are that government will divide land into three categories. First and foremost is the extremely fertile land, which they will not touch. Second one is the ordinary land. Last one being the government land. On the basis of what kind of Industries state needs, government will decide whether to give it to companies or not.

On other fronts, too, there are challenges that need to be addressed. In my opinion, basic infrastructure needs an urgent overhaul. No one will argue with the fact that the supply of power has not kept pace with demand in Uttarakhand. At this moment of time, the state generates 950 MW of power, against a peak demand of 1,200-1,300 MW. An investment of Rs 11,000 crore is expected to be made in the sector over the next few years to ramp this up to 3,500 MW.

In addition, there is an Rs 2,200 crore ADB funded project to overhaul and build roads in the state. The states urban centres also need large doses of investment. The lack of trained manpower is another issue. The government is working overtime to address this by inviting companies to adopt Industrial Training Institutes.

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