Paradip: Despite state and Central governments’ attempts to maintain the status of Paradip as an industrial hub, about 15 companies operating from here are in deep slump.
During the Make in Odisha-2017 and 2018 events, the state government had announced its investment plans for Paradip to boost economic growth and generate employment.
The Central government had also announced a petro chemical hub, a plastic park, a poly poplin project and some other units with a total investment of Rs 1, 00, 000 crore during the conclave.
Shipping and Water Resources Minister Nitin Gadkari reiterated his government’s promise of Rs 1 lakh crore investment during his Paradip visit last February.
However, reports say that the real picture of Paradip is not so encouraging for industrialisation. Many industries here have either been closed or planning to close operations soon. Deepak Fertilisers and Petrochemicals Corporation Limited is the latest planning to shut operations in Paradip.
In October 2017, Deepak Fertilisers conducted a public hearing for the production of technical ammonium nitrate, weak nitric acid, ammonium nitrate and ammonia on the outskirts of Bagadia village.
The plant, to be set up on 83.26 acres of land, was scheduled to invest Rs 1,750 crore within 36 months. The boundary wall was constructed for the proposed plant and machinery was also procured. The equipment is being kept at Dochhaki for which the company is paying a rent of Rs 8-10 lakh. The company’s office has been functioning from a rented accommodation at Udaybat near Cuttack-Paradip road since 2006.
Meanwhile, the company has reportedly served a notice on the house owner that it would vacate the office by March 31. The company’s decision to close its office is reportedly due to uncertainty. Some of the staffers have also been retrenched.
The company acquired land in 2016 and handed over the total land to IDCO in March 2016.
While the discrepancy in the agreement with a company for storing ammonia is said to be the reason for the plant’s closure, the company authorities are blaming the government’s failure.
The company’s General Manager S Ray said, “After the success of the public hearing in 2017, a letter was shot off seeking environmental clearance. It is getting inordinately delayed in getting the No Objection Certificate (NOC) from the Coastal Regulation Zone (CRZ), delaying the overall set up of the plant.”
Notably, the clearance of CRZ is mandatory when a plant is set up at a distance of 500 metres off the sea. But in the case of Deepak Fertilisers and Petro Chemicals Corporation Limited, the proposed plant site is 5km away from the sea.
Companies are allegedly not adhering to the agreements they have made even after getting the land. The government is also allegedly not providing all the facilities promised during the announcement of the project.
Experts sighted this as the reason why many companies are leaving the industrial hub. Kargil India, an edible oil company, is the first one to suffer. Its operation was closed down in 2014. Four years later, Adani Group took charge of its operations. Similarly, after remaining closed for about two years, Essar Steel is said to have been sold off.
At the 2017 Make in Odisha conclave, PPL announced expansion with an investment of Rs 10,400 crore. Even though two years have passed, there is little progress in this direction.
PNN