WE THE PEOPLE
Lack of finances and feasibility reports deprive entrepreneurs of viable units in Kashmir
They urge Government to provide liberal financial assistance and ensure workability of projects before their actual launch
By: Alham Masoodi
Srinagar: Having come to know that Kashmir Valley has remained in the backyard of industrial arena, the Ministry of Food Processing Government of India approved setting-up of a Food Park at Industrial Complex Khonmoh in 2001 at an estimated cost of Rs.7.25 crore. The Project cost was to be met out of contributions from Government of India (Rs.4 crore) and the State Government (Rs.3.25 crore in the shape of land and available infrastructure). The Food Park was developed on an area of 102 kanals at an expenditure of Rs.5.43 crore. The SIDCO developed 44 plots, of which 36 plots were allotted to entrepreneurs. But it is astonishing to learn that only a few entrepreneurs established their units ending October 2006. According to the terms of the Lease Deed, the entrepreneurs were required to establish their projects within 6 months of the date of execution of the Deed. In the event of failure of the entrepreneurs to set-up their establishments within the said period, the allotment was liable for cancellation. It has come to our notice that the entrepreneurs could not set-up their units as they faced problems on account of finances from financial institutions. Therefore, a substantial part of the allotted land could not be put to intended use on account of inability of the entrepreneurs to arrange required finances for the purpose. They thus got deprived of the benefits projected by the Central Government.
Similarly, a Food Park was proposed at Sopore at an estimated cost of Rs.9.48 crores and was to be financed both by the Central and State Governments. It is reported that an expenditure of Rs.5.32 crores was incurred on the development of 160 kanals of land. It is further learnt that no survey had been conducted by the company to ensure availability of water in the area. The work of digging a tube-well in the vicinity of the site was abandoned midway due to release of gas during its drilling. The company thereafter proposed to supply water to the area from nearby river and appointed a consultant for designing Water Treatment Plant. No such plant had been established at the site till October 2006. It has emanated that due to selection of a site without ensuring availability of water, the Food Park could not be put to use as Food Processing being water intensive requires adequate and dependable water supply. Had the concerned authorities conducted soil investigation prior to the selection of the site, the investment of Rs.5.32 crores would have yielded the positive dividends. This shows lack of planning and investigation before embarking upon such projects.
“It is no fun to start a project without testing its feasibility. No Project can prove beneficial if it is not formulated on the basis of correct data. We have been noticing that the officials of SIDCO have not been putting their heart and mind in the job, bringing thereby the budding entrepreneurs face to face with severe hardships. They should have kept it in mind that the quota of Government Jobs has almost exhausted and the only way to absorb educated unemployed youth is the industrial sector. This sector has enough potential for providing job opportunities provided this is tapped and harnessed by trained hands. How industries based in Jammu region have marched ahead and proved to be job-reservoirs is quite baffling while as Kashmir region has remained far behind. Is it due to lack of initiative and drive on the part of Kashmir based officials or due to some deliberate move? It is for the Government to sift the chaff from the grain. Those responsible for failure of projects need to be punished so that tax-payers money is not squandered”, said a group of industrialists and entrepreneurs of Kashmir Valley.
There are many more examples to prove the failure on the part of officials working in the Industries Department to substantiate our argument. No project can prove successful until and unless it is formulated and prepared on correct field data. Therefore, it becomes necessary for the planners to get feasibility reports prepared and then and then only actual execution taken-up. It is also imperative that all schemes sponsored by Government of India are taken-up with dedication and devotion so that funds are utilized for the benefit of our entrepreneurs. The entrepreneurs need encouragement as they are engaged in such enterprises which provide not only sustenance to them, but to others as well. If their projects are properly financed and incentives given, there should be no cause for despondency and dejection.
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