State yet to see success at Doddaballpur Park

State yet to see success at Doddaballpur Park

Only 12 out 75 units are functional at the park conceived 5 years ago

However, it is yet to realise full implementation of the project, though all the land acquired has been allotted. The apparel park has faced problems in becoming fully functional even after five years after it was conceived. While initially, lack of effluent treatment plant saw few firms showing interest in setting up units there, few stated issues like non-availability of collaborators. Then, with the treatment plant in place, the park saw a revival with many showing interest –— resulting  in full allotment of land.

However, the problem is different now. Less than 30 per cent of the units at the Rs 53.58 crore park are functional. Worse, despite poor response, with only 12 units out of 75 units that have land allotted being ‘under production’ –— the Karnataka Industrial Area Development Board (KIADB) has identified another 754.22 acres of land –— as part of the third phase of acquisition –— and is awaiting government approval for final notification.

Official sources said units that got land allotted in the first phase (2005) stated problems like non-availability of collaborators and infrastructural issues to be the main reason for non-implementation initially and towards end of two-year period set for implementation, recession had crept in, eating into margins and orders forcing companies to put their projects on hold, besides of course, the credit crunch. Units with land allotted under the second phase (2007) still have time to complete the implementation process. Further, official sources said that many firms under first phase have been issued notices (under class 14 of the act) for not implementing the project, and some are already paying a penalty (10 per cent of land cost at current price in some cases).

Big players
According to official data obtained by Deccan Herald, 130.25 acres of land has been allotted under first phase of acquisition –— to 34 units including big names like Binny, Gokaldas Images, Texport Garments and Bombay Rayon Fashion Limited –— out of which only nine units are under production. J J Exports Limited, Everblue Apparel Limited, Ramson Garments Finishing Equipment Limited, Threads India Limited, CORENCO, Bombay Rayon Fashion Limited (two units) and United Dry Goods Limited are under production. Similarly, under second phase of acquisition, 149.85 acres of land was allotted to 41 units, out of which only three units –— Chrysalis Silk Limited, Pavan Poly Jute Limited and Kabbadi Shankarsa Textiles Limited –— are under production. While many of the units are yet to submit their building plans, some have already sought extension to implement the project.

Further, among the total of 75 units another 12 units barring ones that are functional, are under implementation, while five units are stuck with land litigations. Justifying the third phase of acquisition, sources said “the acquisitions are in tune with the State’s endeavour to create a land bank to woo both global and domestic investors, and with the garments sector seeing signs of revival, Karnataka is optimistic of tapping investors for the 750 acre.”

Meanwhile, conceding that approval for final notification is likely to be given before the Global Investors’ Meet (GIM), Minister for Large & Medium Scale Industries Murugesh R Nirani told Deccan Herald that the government is considering four special packages (part of the Suvarna Vastra Neethi) for the sector to provide the much needed thrust.