Experts: No major investment due to ‘high land cost’

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SummaryChandigarh city has not seen any major investment in the last over two and a half years, with the government mostly registering the companies that invested between Rs 1-5 lakh to start business.

Chandigarh city has not seen any major investment in the last over two and a half years, with the government mostly registering the companies that invested between Rs 1-5 lakh to start business.

Government officials and industry representatives say that Chandigarh has missed out on getting any major investment particularly in the manufacturing sector. The industry representatives say that investment hasn’t come to the city due to “very high land costs.”

According to government officials, the firms that were incorporated with the Registrar of Companies (ROC) office in Chandigarh were in the range of an initial investment of Rs 1-5 lakh. However, the registrations have come across sectors including the manufucturing and services sector.

ROC, Punjab, Dr Raj Singh, said that no major company has been registered with his office in the last two and half years. He however said that the number of registrations have seen an increase in the last few years.

The office of ROC Punjab which has jurisdiction over the state of Punjab, Himachal and the Union territory of Chandigarh has registered most of the companies in Punjab and Himachal. “A total of 1450 companies were registered in the last financial year while the number of companies that were registered in 2010-11 fiscal was 1200. In the last seven months of the current financial year nearly 1,000 companies were registered with our office. But the majority of these companies had the initial capital investment of not more than Rs five lakh,” said Singh. He added that among the companies that were registered, not all started the business.

CII Chairman-Chandigarh Council, Sameer Goel, said that the difficulty in getting investment in the manufacturing sector is because the city is short of land. “The government wants to maintain a clean and serene look of the city which is the reason it can allow investment in the manufacturing sector only up to a certain extent. The investment has however come in the IT sector and the jobs have been added.”

CII and government officials said that the industries that have come up are mostly in the small scale sector. However Goel said that while the industry body supports the government on maintaining the clean and green look of the city, the government can add jobs by allowing investment where less land is required.

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