Delay in plastics park makes investors jittery

Delay in plastics park makes investors jittery
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The much-awaited new industrial park for plastics industry planned way back in 2014 by the Telangana State Industrial Infrastructure Corporation (TSIIC) is yet to take off, causing jitters among investors and companies.   

Planned in 2014, works on the park are yet to kick off; companies tapping alternative options

Hyderabad: The much-awaited new industrial park for plastics industry planned way back in 2014 by the Telangana State Industrial Infrastructure Corporation (TSIIC) is yet to take off, causing jitters among investors and companies.

The Telangana and Andhra Plastic Manufacturers Association (TAAPMA), the industry body that represents plastics industry in two Telugu states, wanted to develop the park on international standards, but the inordinate delay forced many companies which planned to set up units there to explore alternative options.

“A land parcel of 170 acres has been identified for the park at Manchal village along Srisailam Highway nearly three years ago. But the government is yet to issue the requisite order and hand over the land,” a senior industrialist in plastics industry told The Hans India.

Asked why there was so much delay, the industrialist said the government would be in a better position to clarify on the ‘ordinate delay’. “We have been in constant touch with the Telangana government as well as TSIIC. We don’t know the reason for the delay in allocating land for the plastics park when the government has aggressively been promoting textile, pharma and other industrial parks.

In fact, there is no explainable reason whatsoever,” the industrialist observed.The plastics park is expected to accommodate over 150 industrial units, with cumulative investments ranging from Rs 500 crore to Rs 1,000 crore.

“The proposed park is not enough as it can accommodate only small and medium enterprises (SMEs). But we will be able to make a beginning with it and thereafter go for a larger facility which can have place for large companies,” another industrialist said.

Pointing out that the long delay had obviously made investors and companies jittery, the industrialist pointed out that some companies which planned units at the new park bought land elsewhere and started setting up their units. “Some companies are moving to Andhra Pradesh too as they can’t wait forever and hold back their business expansion plans,” he said.

When contacted, TAAPMA president Venugopal Jasti said that the Telangana government had announced the plastics park way back in 2014. “There was a delay because some of the land was in a civil dispute. That case was cleared six months ago.

We are now hopeful that the State government will soon complete the formalities and hand over the land to us,” he explained.

He further maintained that the industry body would develop an ultra-modern, world-class plastics industrial park once it got the land from the government. “We will develop infrastructure within one year and showcase the facility as a model park,” he said.

Jasti admitted that some of the companies which planned their units at the new industrial park already made alternative arrangements and purchased land elsewhere.

“Such delays obviously cause problems as companies have to set up new units or expand operations within a timeline. However, we are pursuing with Industries Department as well as the TSIIC. Hopefully, there will be a positive outcome,” he said.

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