e-auction of industrial plots likely to trouble MSMEs

Tribune News Service

Bathinda, April 24

The decision to e-auction industrial plots by Punjab Small Industries and Export Corporation (PSIEC) does not seem to have gone down well with owners of MSMEs (micro small and medium enterprises) units who said the move will encourage the practice of commercial buying of industrial property putting genuine small and medium scale industries at the receiving end.

The industrial fraternity said the recently introduced e-auctioning of industrial plots would give a free hand to property investors who have started buying plots at higher rates than the reserved price. Industrialists’ apprehension is that with the e-auction in place, industrial plots meant for establishing different industrial units, can be misused for commercial purposes by property investors.

Talking to Bathinda Tribune, MR Madan, associate member of the Bathinda Chamber of Commerce and Industry, said, “Already grappling with a low market scenario, small-scale industry has been given another jolt by the PSIEC authorities. E-auction of industrial plots will divest industrialists operating at micro, small and medium scale from buying plots as property buyers operating at large scale would start investing in the industrial plots. They will then re-sell these plots at higher rates, thereby leaving the small and medium scale industrialists at their mercy.”

Madan added, “The move will not only encourage commercialisation of industrial land, but also discourage setting up of new industrial units. The reserved price for the industrial plots is Rs 2,700 per square yard. But a Delhi-based firm had bought a plot for Rs 4,900 per square yard. The move to introduce e-auction of industrial plots is questionable as it will discourage the setting up and expansion of small and medium scale industries.”

Industrialists have written a letter to the Punjab Industry and Commerce Minister, Managing Director, PSIEC, Rahul Bhandari and Finance Minister Manpreet Singh Badal to intervene in the matter and provide a viable solution to the same.

Industrial Growth Centre Owners’ Association president Ram Parkash Jindal, in the representation submitted to the PSIEC authorities, said earlier, before allotting an industrial plot, a proper procedure was followed. The letter stated that an interview of the prospective plot seekers was conducted and they were asked to submit a project report detailing regarding the industrial unit he/she is going to establish, qualification, machinery, viability, workers and financial resources for the project. And only after establishing the genuineness of the industrial project (following scrutiny), industrial plots were allotted.

“But with e-auction, real estate dealers would start buying industrial plots at higher rates and further use them for commercial purposes (resell them at higher rates to earn profit). It is the small scale industrialists or those who want to start own business (small scale) would be rendered helpless,” added Jindal.