Thousands of small industrialists in the city are staring at an uncertain future as the mixed land use (MLU) policy nears its expiry on September 30, while the state government has not issued any assurance regarding its further extension.
“The government was supposed to develop an alternative industrial area around the city where these factories would migrate before this period ended. This extension ends in September. “To move and set up operations somewhere else will cost around ₹ 4 crore. A bank loan will cost nearly ₹ 40 lakh in annual interest, whereas my profits are around ₹ 30-35 lakh a year,” he said. Gurmeet Singh Kular, president of the Federation of Industrial and Commercial Organisation (FICO), said that with September 30 nearing, thousands of factories that manufacture essential small parts for larger units are facing an uncertain future. The policy was introduced for 10 years by the then Shiromani Akali Dal government in 2008 after industrialists complained that they faced problems operating units established in residential areas. However, the industrial area could not be developed in time, and by 2018, the Congress government had to give the policy a five-year extension. This was followed by another three-year extension in 2023 by the current AAP government.
Harpal Singh Bhamber, former president of the Janta Nagar Small Factories’ Association, said he runs four factories in Janta Nagar, manufacturing handles and brakes for bicycle manufacturers in the city. He said that if the policy is not extended, the Punjab Pollution Control Board will shut down their factories. He said the government should declare Janta Nagar and other such localities situated near industrial areas as industrial areas. The industrial area in Dhanansu was seen as the alternative,” Kular said. Calling for an extension of the policy, industrialists said an industrial area should be developed around the city where these factories can migrate. Upkar Singh Ahuja, president of the Chamber of Industrial and Commercial Undertakings (CICU), said he was hopeful that the government would recognise these MLU areas as industrial areas to ensure that the same situation does not arise again three years later if an extension is granted.
