KARACHI, Sept 3: Industrialists who had booked plots in the Hyderabad Industrial Estate (Extension) have sought refund of Rs560 million from the Sindh Industries department against booking of their plots as the SITE Ltd failed to develop infrastructure in the industrial estate.

A leading investor and chairman Hyderabad Business Panel Amin Khatri told that allotment for plots was made about three years back in the Site Extension spread over 300 acres but the Sindh Industrial Trading Estate (SITE Ltd) failed to develop infrastructure, such as roads, water and electricity.

About 235 allottees each paid Rs2.4 million for one acre plot in the area. However, they refused to accept the allotment letters protesting against the condition laid down in the letter asking plot holders to construct boundary wall around their plots within 15 days.

The condition was apparently laid down to prevent encroachments which are rampant in Hyderabad Industrial Estate.

The investors, however, refused to accept the condition as they said the area was inaccessible in the absence of roads and no construction activity could take place unless there is water.

Under the rules, plot owners in industrial estates in the province are required to start production in one year otherwise their allotment would be cancelled.

The rule was framed by the department to discourage booking of industrial plots for investment purpose and to give land only to genuine industrialists.

Mt Khatri said that the SITE Ltd is neither developing infrastructure in Hyderabad Extension nor refunding the price paid by investors.

He accused the department of earning interest on investors' money and not investing it for building roads, water and electricity in the area so that investors could build their factories.

There are 13 motorcycle manufacturing units in Hyderabad industrial estate which are not only catering to the bike market in the interior but also exporting two wheelers to Sri Lanka and Bangladesh and some African countries.

Many investors had acquired plots in the Extension area to set up auto parts industry to cater to the needs of bike manufacturers.

Mr Khatri complained that the estate has become target of large scale encroachment and some influential persons have encroached upon land in front of factories and have constructed shops.

The factory owners have lodged several complaints with the DCO Jamshoro but to no avail.

The Site Hyderabad which has about 500 industries mainly rice and floor mills is suffering from poor infrastructure facilities as road and drainage network has completely shattered. There are no street lights in the area which has made factory owners and staff easy target for robbers and kidnapers.

He said that due to general recession and poor working conditions, production in textile units and bike plants has reduced by 30-40 per cent.

No official of the SITE Ltd was available for comments.