Published On : Thu, Aug 22nd, 2019

Recession effect: MIHAN SEZ witnesses exodus of companies

Eight companies return 109.26 acre land and shelve plan to set up units in SEZ

Nagpur: The impending recession staring the face of the country, it seems, gripping the MIHAN Special Economic Zone (SEZ) in Nagpur, as well. As nation is witnessing a slump in the stock market, an increase in unemployment, the SEZ is too witnessing exodus of companies that had assured to set up their units over a period of time.

Despite efforts by the MIHAN to attract industrial investment or create jobs for the people of the region, the scenario is bleak and worrisome. This is in stark contrast to the roof top claims being made by the politicians from the region about a bright future of MIHAN from time to time.

The bitter truth is that the exodus of companies, one after another, from SEZ continues unabated. Till to date, eight companies from SEZ have returned 109.26 acre land allocated to them for setting up their units. These companies were to set up power plant, healthcare facilities, information technology and manufacturing units.

The companies that have return land include:

  • Duke Aviation Engineering Pvt Ltd – 6 acres
  • Nova Engg Polymers Pvt Ltd – 2.76 acres
  • Nova Engg Polymers Pvt Ltd – 1.68 acres
  • Wipro Technologies – 23.40 acres
  • L&T Infrastructure Development Project Pvt Ltd – 50.85 acres
  • Abhijeet Generator Set and Power Project – 15.57 acres
  • Saif Health Remedies Pvt Ltd – 01 acre
  • Quality Care India Ltd – 08 acres

Recession the reason:

Even though the HCL went for expansion in MIHAN (Multi-modal International Cargo Hub and Airport at Nagpur), some of the companies have bid adieu the SEZ mainly due to recession gripping the nation. Even the HCL had also proposed to return land but backtracked following intervention by Union Minister Nitin Gadkari. Several companied from different sectors had acquired land for setting up of their units in MIHAN SEZ. But with recession staring the face, these companies thought it wise to return the land raising question marks over development of MIHAN.

295 industrial units vanish from records in two years:

The records at the office of Additional Director, Directorate of Industrial Safety and Health show that total 295 factories have vanished in the past two years. Amendment in the Act is being cited as the main reason for this disturbing fact. Earlier, registration of factories having ten workers was being done. But it has now changed.

Factories having more than 20 workers are now being registered. Because of this, the number of factories on record are showing a decline. On the other hand, revenue of the concerned department is getting dented. Moreover, as many factories running on automated machines instead of manpower, these units are not coming under the relevant Act. And hence many factories have been vanishing from records of the department. Situation is that only 1463 factories out of 1701 are now running in the district following the amendment in the Act.

The process:

The registration for starting new industrial units in Nagpur Division comprising Nagpur, Wardha, Bhandara, Gondia, Chandrapur and Gadchiroli has to be done with concerned department. The annual renewal has also to be done. Certain amount of fees have to be paid by the factory owners for this registration.

Earlier, till the year 2015, factories having 10 workers were being called factories in accordance with Factories Act. With this provision in place, there were a number of factories were running in Nagpur Division. But the situation changed with the amendment in the Act in 2017. Now, factories having more than 20 workers are being called factories under the Act. Because of this change, many factories vanished from records. Sitaution has come to such a pass that 295 factories vanished from the records in the past two years.