The Peenya industrial area, which comprises thousands of small and micro enterprises that employ millions of workers, is still awaiting a township status, even almost a year after the B.S. Yediyurappa government proposed to set up the necessary infrastructure for the township backed by a budgetary allocation of ₹100 crore.
The Peenya industrial area is a critical infrastructure as it manufactures almost 50% of machine tools produced in the entire country and also, independently, it accounts for over 60% of Karnataka’s total production of machine tools.
Despite this industrial estate’s unquestionable contribution towards diverse industries across the country and overseas, various State Governments have been dragging their feet for over two decades and as a result, Peenya was not yet accorded with a township status, lamented representatives at Peenya Industries Association (PIA)
“After decades of our constant follow-ups came the breakthrough in the form of a budgetary allocation of ₹100 crore and the proposal for the township in the last budget. The Electronics City Industrial Association came much later after Peenya, but long ago it became a a township and Peenya is still waiting for it, said R. Prithviraj, former president, PIA.
The real reason for the delay is none of the workers or factory owners at Peenya Industrial Area are local voters. “Employees and employers come from elsewhere and are not voters of the areas and therefore a political will has been missing so far,” said another trade representative at PIA.
According to trade body sources, the allocated ₹100 crore has now been handed over to the Karnataka Small Industries Development Corporation (KSIDC), and the corporation has been given the responsibility of preparing a detailed project report (DPR), which will go for the State Cabinet approval and later for the Governor’s nod. The proposal is also currently waiting for approval from the Urban Development Department.
Recently, there was a high-level meeting, involving representatives from the Government and all departments concerned and office-bearers of PIA, to discuss the matter once again.
“Allotting a township status to PIA and constituting a statutory authority is not a big deal for the Government. It can do it in a month, in March 2022 itself. Please do not delay any further is our earnest request to the Government,” added Mr. Prithviraj.
In fact, the State had the provision to set up such independent townships some 20 years ago when it passed The Karnataka Municipalities (Third Amendment) Act, 2002.
Mega integrated industrial townships
The State Budget 2020-21 had a few more proposals for Bengaluru, including mega integrated industrial townships in both the Bengaluru–Mumbai and the Bengaluru-Chennai industrial corridors on a minimum patch of 500 acres. “We don’t yet see any needle movement in this project,” said a former office-bearer at Kassia.
The budget also proposed a Bengaluru Signature Business Park near Kempegowda International Airport, a ₹168 crore project expected to be spearheaded by the Karnataka State Industrial and Infrastructure Development Corporation (KSIIDC).
Kassia former president Raju said, “The State has been talking about creating industrial infrastructure everywhere. It is mandatory that MSMEs should have access to at least 30% of these industrial spaces, but no one follows it. Also, most budgetary proposals, unfortunately, remain only on paper.”
