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SMEs oppose merger of IALAs with GHMC

SMEs oppose merger of IALAs with GHMC
Highlights

Small and Medium Enterprises (SMEs) around the city and the industry bodies that represent them are stoutly opposing a reported move by the Greater Hyderabad Municipal Corporation (GHMC) to take over Industrial Area Local Authorities (IALAs) that handle activities at the respective industrial parks independently and oversee their development.

Say the proposed move will jeopardise development and proper maintenance of industrial parks around the city

Small and Medium Enterprises (SMEs) around the city and the industry bodies that represent them are stoutly opposing a reported move by the Greater Hyderabad Municipal Corporation (GHMC) to take over Industrial Area Local Authorities (IALAs) that handle activities at the respective industrial parks independently and oversee their development.

“We will stoutly oppose any move by the GHMC to take over the IALAs because such move will be detrimental to the interests of industrialists and industrial parks in and around Hyderabad. Industrial parks suffered a lot due to lack of infrastructure when they were under the supervision of municipal bodies earlier. Infrastructure and other facilities improved after IALAs came into existence,” said J Nageswara Rao, Federation of Telangana Small Industries Associations (Fetsia).

Industrial parks were under the supervision of municipal bodies until 1981 when Notified Municipal Industrial Area Service Societies (NMIASS) were formed to take care of their maintenance and developmental activities. Subsequently, Industrial Area Local Authorities (IALAs) were formed and were given powers to collect property taxes in the respective parks and utilise 59.8 per cent of the tax collections for the local development and maintenance in consultation with APIIC (now TSIIC), the nodal agency for industrial parks.

Of the remaining tax collections, 35 per cent is going into the kitty of the respective municipal corporation. There are nearly 18 IALAs around the city and their bodies are elected by local industrialists every three years. “Infrastructure including roads, cleaning, greenery and waste management improved after IALAs were formed. Tax collections also increased from 20 per cent to 80 per cent now. The merger will be a retrograde step,” Rao explained.

Pointing out that Chief Minister K Chandrasekhar Rao promised to strengthen the IALAs during his interaction with industrialists in July 2014, K Sudhir Reddy said the same was also included in the first industrial policy announced by the Telangana government. “The merger proposal by GHMC is against the policies of the government. Such a move will harm the industrial development in the state,” Reddy warned.

He further said the industrial fraternity would take up the issue with the Chief Minister and see to it that such a merger would not happen. “The IALA concept was appreciated by many states and even the Prime Minister’s Task Force on Industries recommended it to other states for better development of industrial areas,” he maintained.

By:P Madhusudhan Reddy

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