Now Reading: 10,000 Ludhiana factories face closure as MLU policy ends Sept 30
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10,000 Ludhiana factories face closure as MLU policy ends Sept 30
Thousands of small factory owners in Ludhiana are staring at uncertainty as the mixed land use (MLU) policy, which allows them to operate in residential areas, expires on September 30. The Punjab…
Thousands of small factory owners in Ludhiana are staring at uncertainty as the mixed land use (MLU) policy, which allows them to operate in residential areas, expires on September 30. The Punjab government has not yet indicated whether it will extend the policy, which has been renewed twice since 2018.
Gurmeet Singh Kular of the Federation of Industrial and Commercial Organisation said around 10,000 units across 72 localities employ lakhs of workers. These factories manufacture critical parts for the city's bicycle and sewing-machine industries. Owners warn that if the policy lapses, the Punjab Pollution Control Board could shut them down.
Harpal Singh Bhamber, who runs four factories in Janta Nagar, said relocating would cost Rs 4 crore, while his annual profit is only Rs 30-35 lakh. The policy was first introduced in 2008 by the SAD government. Industrialists are demanding the government declare these localities as industrial areas permanently.
Indian Opinion Analysis
The MLU policy was a stopgap from 2008, meant to give small units time while the state developed an alternate industrial zone at Dhanansu. That land never materialised, leaving successive governments to kick the can down the road. The real issue is the absence of affordable industrial plots within the city: Ludhiana's small-ancillary model depends on being close to large bicycle and sewing-machine assembly lines. If the policy is not extended, thousands of workers will be displaced without an alternative site ready. The AAP government, which granted the last three-year extension in 2023, must now decide whether to again renew or finally force a migration that the industry says it cannot afford. The industrial affairs department's next move before the September 30 deadline will determine whether Ludhiana's supply chain holds.
Source: hindustantimes.com
This brief was synthesised by AI from the source linked above.
