Structural reforms needed to enhance ease of doing business

Source: The Hitavada      Date: 28 Jun 2017 10:06:05


Business Bureau,

While demanding flew of facilities for regional development, entrepreneurs based in Vidrabha also urged the state governmnet to remove bottle necks existing in the system. They asked the government to control skyrocketing of the land prices in the industrial areas and provide basic amenities.

Pointing finger at some of the key issues that hindering growth of local industries, Nitin Lonkar, President of Butibori Manufacturers Association recently told the inter regional committee for development of Vidrabha and Marathwada that the governmnet should stop doing auctioning of industrial plots with immediate effect.

“The Maharashtra Industrial Development Corporation (MIDC) has recently launched a new system of the plot allotment wherein it auctions the plots. It is creating unnecessary competition among the buyers and escalates the land cost. Inflated land price also leads to nonavailability of the businesses in many cases. Thus we want the governmnet to roll back the system and offer land to genuine buyers at a fixed rate,” he said adding that the land brokers and other investors have been making money out of these system while the entrepreneurs are facing hardship.Raising the issue of health care facilities for the industrial workers, Lonkar said the region lacks good hospital in the region.

“The only hospital for the workers located in Somwari Quarters area is in bad shape and hence the workers re being forced to avail medical health services from private players. It is also ounting additional burden on the entrepreneurs,” he said.

Lonkar suggested that the governmnet to develop a state-of-the-art hospital in Nagpur.
Lonkar further said that the indutrial plot holders are unwillingly paying development charges to MIDC. “As of now the MIDC is collecting Rs 100 per square meter on account of development charges which is too high. These charges should be very nominal,” he said.

Pravin Tapadia, Past President and Vidarbha Industries Association core committee member, said the government will have to introduce structural reforms to assess ‘ease of doing business’ in the region.
“We want transparency and efficiency in all the concerned departments. Wide use of modern technology and online approvals among others should be encouraged at all possible levels,” he said.

Expressing dissatisfaction over the system in place for availing nod for the fire department, Tapadia the authorities need to simplify it. “There are many other departments wherein we are looking to have a hassle free system that will give respite to the entrepreneurs,” he said. VIA core committee members also urged the policy makers to save he entrepreneurs from paying taxes to Gram Panchayats. “As the MIDC is providing amenities to the entrepreneurs, it should be the only authority to collect applicable taxes,” a VIA member said.