Slow follow-up of promised investment worries Gorakhpur

Shishir Sinha

It is the lack of land and absence of credit facility from banks that is creating hurdles for businesses in Gorakhpur. Not so much the crime that the city was known for.

“When an entrepreneur does not have fear, then only will he set up his venture and do business,” said Rakesh Pratap Singh, Sociology academic at Deendayal Upadhaya Gorakhpur University.

Praveen Modi, General Secretary of Chamber of Industries, Gorakhpur said: “This will be possible only if there is enough land available, and banks provide credit.”

Gorakhpur in eastern Uttar Pradesh is known for its history of organised crime, which resulted in many industries closing down.

But now it is expected to see investments of ₹15,000-16,000 crore.

Few units on the go

This investment commitment is part of the MoUs worth ₹4.28 lakh crore signed for the State in 2018. Ravinder Singh, an industrialist, said that among the MoUs signed, 3-4 units with investment of over ₹200 crore have started functioning.

On the slow pace of implementation, he said: “There is no ‘land bank’ kind of thing”.

The Gorakhpur Industrial Development Area (GIDA), an upcoming industrial township, and the State government need to act fast, he added.

While both Singh and Modi praised Yogi for the much improved law and order, better road connectivity, more power and the GST, lack of land bank and bank credit are a concern.

“Provision of mandatory 25 per cent purchase from MSMEs has not been implemented properly. Low credit deposit ratio is another problem. Now banks are seeking a higher guarantee, which does not make sense for bigger industries,” Modi said.

The difficulty in loan sanctions for new business is affecting development of entrepreneurship in this region. For Singh, list of concerns includes slower credit, absence of a Common Effluent Treatment Plant in the industrial area, and lack of clarity on rules.

There are 400 small, medium and big industrial units in this region employing 10-12,000 people. It is estimated that when all MoUs are implemented, employment opportunities for nearly 15,000 can be created. This will encourage reverse migration.

What will be key for Gorakhpur in this election? “Development is not a single decisive factor for voters,” said Rakesh Pratap Singh, indicating that caste and other issues will also play a role. Polling in Gorakhpur will take place on May 19.