Panipat handloom industry eyes Uttar Pradesh amid growing woes - The Tribune

Panipat handloom industry eyes Uttar Pradesh amid growing woes

Industrialists discuss relocation citing NCR curbs, water shortage, lack of common facilities

Facing growing operational challenges, including limitations related to the National Capital Region (NCR), inadequate basic and common facilities and water shortages, several Panipat industrialists, including major exporters, are considering shifting their handloom units to non-NCR districts of neighbouring Uttar Pradesh.

The move follows efforts by officials of the UP Industries Department to woo Panipat industrialists with incentives and infrastructure facilities. The issue was also discussed at a recent meeting of exporters, who compared the facilities offered by Haryana and Uttar Pradesh.

Panipat has an annual industrial turnover of around Rs 65,000 crore, including nearly Rs 20,000 crore from exports and Rs 45,000 crore from the domestic market. Around 400 exporters sell carpets, cushions, bed linen, blankets, curtains, bath mats and other products in the US, UK, Europe, Japan, Australia and Gulf countries. More than 20,000 small and large units employ over four lakh people.

Lalit Goel, president of the Exporters’ Association, said UP officials at a recent trade fair in Noida approached Panipat industrialists and offered incentives and subsidies for setting up units in the state.

“Panipat industries are now recognised at the global level, but it is in the NCR, due to which the industrialists have to face several issues in running their industries,” he said.

Goel said UP was offering incentives such as capital subsidy of up to 50% for plant and machinery, land-cost subsidy, full exemption from stamp duty and electricity duty for 10 years, fixed power charges for five years and employment subsidy for five years. Freight subsidy of 25 to 75% for new garmenting units and common facilities such as roads, power, water, zero liquid discharge and training were also being offered, he said.

Vinod Dhamija, president of the Haryana Chamber of Commerce and Industries, Panipat chapter, said the issue of shifting units to UP was being discussed prominently among exporters.

“UP officials are also in touch with several industrialists here and the industrialists are also making up their minds to relocate their industries there,” he said.

Dhamija said UP was assuring better common facilities, while Panipat was yet to get facilities such as zero liquid discharge, common boilers and uninterrupted power supply. “Even, free zones have been ended in Panipat, which is a big setback for the expansion of industries here,” he said.

Ramesh Verma, president of the Handloom Exports Manufacturer Association, said the Haryana Government needed to take the issue seriously.

“We have spent 50-60 years developing Panipat as Handloom City. If only 10% exporters moved to UP, then it would be a big loss to the state,” he said.

Rakesh Jain, vice-chairman of the Handloom Export Promotion Council and a member of the exporters’ association, said NCR-related pollution restrictions and inadequate water supply were among the major concerns.

“The textile industry is based upon water, and it needs plenty of water, but the government has failed to provide sufficient required water to the dyeing industry,” he said.

Jain said zero liquid discharge and a common boiler had remained major demands of the industry for years. He added that UP had also approached the council to promote its handloom products overseas and that the council had signed an MoU with the state government to organise an expo there, with overseas buyers and Panipat exporters invited.

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