KARACHI: In a major policy shift the Sindh government has decided to revamp and expand the existing nine industrial estates instead of setting up new ones, sources at the Department of Industry revealed on Saturday.

The poor infrastructure with massive encroachments has led to closure of many units in Nooriabad, Hyderabad, Sukkur, Kotri, Tando Adam and others industrial estates.

The sources said that the government has approved Rs1 billion for rehabilitating and modernising of four industrial estates — Site Karachi, Hyderabad, Nooriabad, and Site Super Highway — which were set up 30-40 years ago but were neglected.

The department’s data showed that there were 46 sick units in Nooriabad, 27 in Sukkur and 11 in Hyderabad industrial estates while a large number of plots were remained unutilised due to encroachments.

Sources said that improvement in law and order situation had a great impact on industrialisation as thousands of acres (3,000 acres alone in Nooriabad) had been vacated from encroachers with help of the Rangers.

Sindh Industrial Trading Estate (SITE) Ltd Managing Director Ahmed Nawaz Jagirani asked the allotees of these plots to take possession and start construction by Dec 31, 2015 in Nooriabad, failing they would not only be liable to pay non-utilisation fee but would also face cancellation of allotments.

There are 250 units, mostly textile, are operating in Nooriabad industrial estate, which once enjoyed tax exemption including income tax, sales tax and customs duty. However, the withdrawal of tax incentives adversely affected industrial development at the estate which is considered the best textile export hub due to its close proximity with Port Qasim.

Sources said that increase in price of industrial land by the Board of Revenue (BoR) is seriously hurting the industrial development in the province.

The Department of Industry had sought 1,000 acres for expansion of Hyderabad industrial estate, but the BoR was demanding Rs100,000 per acre against the normal rate of Rs10,000. The request has been pending since 1992.

Published in Dawn, September 20th, 2015

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