MSME investors protest against large plot allocation in Pithampur:Entrepreneurs demand 40% land reservation for small industries; upcoming economic corridor projects

There is anger among local entrepreneurs over the development of Sector-7 in the Pithampur industrial area. Some investors have complained to the Industries Department, alleging discrimination in land allotment for MSME industries in Pithampur Sector-7. They said that most of the plots being allotted in Sector-7 are of large sizes. According to the organisation, the land is being reserved only for large industries. MSME units with investments below ₹125 crore are not being given land allotment. The complaint also raised questions over the fairness of acquiring land from local farmers and handing it over to outside industrialists. It asked how regional development and local employment would grow if local entrepreneurs and small and medium industries are denied opportunities. The entrepreneurs argued that small industries generate more jobs, while large industries depend more on machines. Pithampur Industrial Organisation president Dr Gautam Kothari said they have raised the demand several times, but officials replied that land would only be given to those investing ₹150 crore or more. ₹125 crore
Industries with investments below this amount are not getting land allotment. ₹150 crore
Officials are allegedly saying land will only be given to investors above this amount. Sector-7
Most plots being allotted in the sector are of large sizes. Most companies given land earlier did not fully utilise it Entrepreneur Rohit Khandelwal said the Industries Department had earlier allotted 100 to 130 acres of land to large companies on the Super Corridor. Later, land had to be taken back from one IT company. He claimed a similar situation exists in Pithampur, where most companies that received land did not fully utilise it. He said these companies neither generated the promised employment nor provided the expected revenue to the government. According to him, if the same land is divided into smaller plots of 5,000, 10,000 or 20,000 square feet and given to local entrepreneurs, more industries would come up, employment would rise and the local economy would become stronger. He added that many companies had applied for land a year ago and several industries are already operating in the area. Despite this, applicants are still being told that the scheme is not meant for MSME industries. Small industries being directed towards auctions Entrepreneurs said the department is asking small industries to buy land through auctions, where prices rise two to three times. They argued that if an entrepreneur wants to set up a ₹2 crore factory and gets 20,000 square feet land at a lower fixed rate, the capital burden reduces significantly. They also pointed out that since the land is leasehold, banks do not provide finance easily. Entrepreneurs said they have asked the government what support is actually being given to small industries, since subsidies are the same for everyone. The department’s argument is that merely allotting land does not ensure industries will start operations. On this, entrepreneurs suggested making rules stricter. They demanded that 30% to 40% of land in the new economic corridor should be reserved for MSMEs.