Top companies backing out from Uttarakhand

They came, they saw and they vanished. With the area-based exemptions all set to end tomorrow in Uttarakhand, a series of top companies has now given up the idea of setting up new units in the hill state.

Although, top government officials claimed that the uncertainty over the extension of concessional industrial package was the one big reason that discouraged these companies from moving towards the hill state, sources said several other reasons like recession also deterred them from going for further expansion.

ACC Ltd tops the list of all those companies which did not establish new units despite having such plans. The cement giant was looking for land in the industrial town of Kashipur in Kumaon region and had held talks with the state government in this regard. The company had proposed to invest Rs 379 crore.

Other companies like Borosil Glass, BOC India, Tube investment, Amara Raja Batteries, Annpurna Rolling Mill remained hesitant in coming to the hill state. "We are not saying the industrial package is the only reason. But yes, the uncertainty surrounding the package remained one big reason that discouraged these companies to come to Uttarakhand," said Additional Secretary Industries S C Nautiyal here.

A total of 10 to 15 such top-notich companies backed out at the eleventh hour. "Had we got some more time, some of them surely would have come to Uttarakhand," said Nautiyal. Following this, the investments worth Rs 60-100 billion (Rs 6,000-10,000 crore) were affected, he said.

Chief Minister Ramesh Pokhriyal Nishank, who is seeking the extension of package till 2013, if not 2020, has maintained that the expiry of the industrial package would affect investments worth Rs 300 billion (Rs 30,000 crore), which are already in pipeline in the state.