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Friday, August 7, 2020

Two yrs and waiting: Defence firm asks K’taka govt to resolve delay in plot allotment

Infrastructure
It has been two years since ADD Engineering Components (India) Pvt Ltd applied for a plot of land near Bengaluru but the application is yet to be considered.
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It has been two years since ADD Engineering Components (India) Private Limited applied for a plot of land at the Nelamangala Industrial Area near Bengaluru to establish its manufacturing unit but the company officials have grown tired of the long wait for their application to be considered.  The company provides high-end cutting tools to other companies including Hindustan Aeronautics Limited’s (HAL) Light Combat Aircraft (LCA) project but are now considering taking their manufacturing unit to other states after growing weary of the delay in starting operations in Karnataka. “We are waiting it out despite receiving proposals to start our manufacturing unit in Andhra Pradesh since we want to set up our manufacturing unit in Karnataka and be able to bring industries to the state," said ADD Engineering Components (India) Private Limited Director Girish Linganna. The application for a plot application is pending with the Karnataka Small Scale industrial Development Corporation (KSSIDC) and Girish says that after two years of delay, he was informed that the plot of land was held up with legal issues.  "We are not particular about where the land is located but we would prefer it to be close to Bengaluru," Girish adds. KSSIDC officials expressed helplessness in the delay in allotment of plots to companies in the Nelamangala Industrial Estate. An official said that there were legal hurdles and many companies like ADD Engineering Components were waiting for land to be allotted. He said that in this particular case, land could be allotted at Gauribidanur but that is not something the company is keen on since it is 90 km away from HAL.  Girish says there are sites in Kumbalgodu and Mysuru Road which are better alternatives. In August 2018, the company wrote to the then Union Defence Minister Nirmala Sitharaman and the Defence Investor Cell, which provides information including addressing queries related to investment opportunities in the defence sector. Despite receiving a recommendation from the Defence Investor Cell, Girish says KSSIDC is yet to take action on the allotment of land.  "This is my last attempt to get the land allotted. There are many policies by the government to woo investors but there is a lack of proactiveness to follow up and resolve issues. If the land is not allotted, I will be seeking alternatives in other states," Girish says. 
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