More than just hills!

The BJP government in the state has taken the help of the BJP-Akali rule in neighbouring Punjab for availing better connectivity with Chandigarh. It also pushed the Haryana government to improve roads that were essential to send the pharma produce to other states safely. Uninterrupted supply of electricity, establishment of important government offices and a positive mindset of officers and bureaucrats has proved helpful to the industrialists. However, challenges remain. The state government has imposed a condition that 70 per cent of the employees must be locals. Lack of skilled labour, poor internet connectivity, limited availability of rail and air transport are other issues. These are offset, however, by the peaceful atmosphere and hassle free administrative setup which acts as encouragement to industrialists. Baddi gets the advantage of the packaging units, spinning mills, engineering equipment manufacturing factories set up in the nearby Barotiwala and Nalagarh areas.
 

Starting in Shimla, you cross the Parwanoo barrier by evening and enter Haryana. From the old city of Kalka, one needs to take a connecting road to Baddi. Till recently, it was almost impossible to use this road. The Haryana government was unhappy as Himachal had bagged the special package. There was no support to improve the condition of the connecting road. Finally, the Himachal government had to seek help from the central government. Today, this connecting road acts as a lifeline for the industries in Baddi. Travel and transport has become easier.
 

Once you reach Baddi, you find tall buildings greeting you. Sun City has developed flats with all modern facilities. In Baddi, there are hostels for both male and female workers. All the pharmaceutical companies are here – the only distance between them is their professional competition.
 

The state government has opened a single window clearing agency office for the convenience of industrialists. If an industrialist plans to setup a plant whose machinery costs Rs five crore, then he does not need to rush from one office to the other. All the approval related work are concluded from this single window. For plants that cost more than Rs five  crore, one needs an approval from the main office in Shimla. Industrialists get a 50 per cent subsidy on plant and machinery. Plant and land are available on a no profit, no loss basis. Says Gorkhuram, manager of the single window clearing agency, “The industrialists do not have major complaints. Scarcity of skilled labour is a global issue. The roads get worse because of the load. Uninterrupted electricity supply is ensured.''
 

More than 200 pharmaceutical companies have set up plants in Baddi, where they formulate. The place conducts business worth Rs 2.5 lakh crore annually. There are packaging units, spinning mills and engineering units. HDFC, SIDBI, Axis bank, Yes Bank, ICICI, IDBI and several others have opened branches. The state government has established the BBN Development Authority which is headed by chief minister Prem Kumar Dhumal.
 

Says Arun Rawat, president of the Baddi-Barotiwala-Nalagarh Industries Association, “The special industrial package has helped in increasing investment. The state government has played a positive role in providing important facilities. We do not face baseless issues of trade unions, like other states. Electricity supply is good but there is room for improvement. Electricity production is good but the state lags behind in distribution. Scarcity of skilled  labour is definitely a big issue for us. The government needs to improve the rail and air transport. We miss rail transport. Once trains ply in the region, the cost of transportation will come down. It will be both comfortable and profitable.” He believes the state government should set up an infrastructure board in Baddi. The problem of skilled labour could be solved by developing a bridge between educational institutes and industries.
 

Points out JS Rana, director industries, Himachal, “The government understands the needs of industrialists. The special package has helped increase the pace at which the industrialists invest here. We are trying to maintain that pace. We seek regular feedback from industrialists and solve problems as soon as possible. Last October, the government discussed 15 important issues with the industrialists. Efforts are on in right earnest to provide better power supply, road network, sewage treatment plant and other basic facilities.”

Today, Himachal has a total of 38,291 small, medium and large scale industries. The total investment is Rs 14109.29 crore. It witnessed a major increase in investment after the special package was announced in 2003. Despite hiccups, the state has not looked back since then.