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In the city of lamps, bulb industry is dying
Dehradun, Aug 20: In this city of lamps, it is virtually a slow death for the 40 odd small-scale bulb industries.
Dehradun, Aug 20: In this city of lamps, it is virtually a slow death for the 40 odd small-scale bulb industries.
Though nearly 60 such industries have been shut down, 10 more are on the verge of closure threatening the existence of the Rs 30 crore bulb business in the city.
Several industrialists in this business have switched over to other sectors, some of them opening schools where once these industries stood.
Despite the state government's move to revive and rehabilitate sick SSI units by providing interest incentive of three per cent with a maximum of Rs two lakh on the loans from financial institutions and banks, the situation has not improved, market sources said.
According to a survey, nearly 40 SSI units in the organized sector and 250 units in unorganized sector were found in working condition. In the face of stiff global competition, especially after the influx of Chinese electrical goods, the bulbs business here has entered into a bumpy ride with the government ruling out any fresh sops to revive the once-lucrative business.
"It's sad we are not finding any ways to expand our business. Neither are we getting any help from the government, nor is there any level playing field," rued Rajiv Berry, director of Berry Anand Lighting Pvt Ltd, with a turnover of Rs 3.2 crore.
Last year, the company, which produces Indolite brand of bulbs mainly for automobile industry, earned a profit of Rs 17 lakh, which, berry said was not so encouraging. Most of the orders which used to come from big business houses like Telco have now stopped, he said.
High-cost labour, power tariff, erratic power supply and other factors are the bane of the bulb industry here.
"The minimum wages in Uttaranchal are much higher as compared to other states with same geographical conditions such as Himachal Pradesh and North East," said R C Jain, also in the bulbs business.
Most of the industrialists are calling for lowering of power tariffs and have already submitted a scheme in this regard to the government to boost the bulb business. Bureau Report
Several industrialists in this business have switched over to other sectors, some of them opening schools where once these industries stood.
Despite the state government's move to revive and rehabilitate sick SSI units by providing interest incentive of three per cent with a maximum of Rs two lakh on the loans from financial institutions and banks, the situation has not improved, market sources said.
According to a survey, nearly 40 SSI units in the organized sector and 250 units in unorganized sector were found in working condition. In the face of stiff global competition, especially after the influx of Chinese electrical goods, the bulbs business here has entered into a bumpy ride with the government ruling out any fresh sops to revive the once-lucrative business.
"It's sad we are not finding any ways to expand our business. Neither are we getting any help from the government, nor is there any level playing field," rued Rajiv Berry, director of Berry Anand Lighting Pvt Ltd, with a turnover of Rs 3.2 crore.
Last year, the company, which produces Indolite brand of bulbs mainly for automobile industry, earned a profit of Rs 17 lakh, which, berry said was not so encouraging. Most of the orders which used to come from big business houses like Telco have now stopped, he said.
High-cost labour, power tariff, erratic power supply and other factors are the bane of the bulb industry here.
"The minimum wages in Uttaranchal are much higher as compared to other states with same geographical conditions such as Himachal Pradesh and North East," said R C Jain, also in the bulbs business.
Most of the industrialists are calling for lowering of power tariffs and have already submitted a scheme in this regard to the government to boost the bulb business. Bureau Report