In the early eighties, Haryana Financial Corporation (HFC) came out with very generous schemes to boost the small and medium sector. They helped Bhiwani become an important centre for plastic products. "Earlier, HFC had a liberal policy," says Shyam Lal Dadhichi, vice president, Bhiwani Industrial Association. "But no longer. HFC has withdrawn the scheme of working capital. In an area where the annual target is Rs 15 crore, HFC has not sanctioned anything since February 1998." HFC, however, has its reasons for change in its policy. Says an HFC official, "Our experience in providing working capital in Bhiwani has not been very good. The funds were misutilised, some of them going to fixed assets. There wereeven cases of diversion of money for personal use. Not surprisingly, there were defaults. However, the change in HFC's policy is not Bhiwani-specific; it applies to the entire state."

Some dishonest entrepreneurs may have misutilised HFC funds, but isn't it unjust to paint all businessmen, the honest as well as the unscrupulous, with the same brush? The HFC official admits that this is not the best thing to do, but "we don't have enough staff for a rigorous follow-up." He adds that his corporation is extremely solicitous of the requirements of entrepreneurs. "We were the first State Finance Corporation to introduce working capital, the first in merchant banking, the first to go public."

This, however, does not stop businessmen lamenting about the omnipresent and eternal bane of the small industry--collateral security. Says Krishan Kumar Mohta, chairman, S K Foils Limited, "HFC demands 200 per cent collateral on working capital, banks ask for 100 per cent besides personal security. It is difficult to runbusiness in such circumstances."

But finance is not as big a problem as electricity is. Few Indian industrialists have good things to say about the power situation--breakdowns are frequent, staff is corrupt or inefficient or both, and so on. But Bhiwani entrepreneurs suffer from, apart from the usual woes, inexplicable delays in getting power connections. Dadhichi's two out of the three units are non-functional because of the absence of power connection for more than three years. C P Radhey of Janta Synthetics got it after three years. "We have stopped expecting anything from the government," says Radhey in disgust.

According to the Bhiwani Industrial Association, about 60 units are awaiting connections. The concerned officials of the Haryana State Electricity Board (HSEB) were not available for comment. The standard response of the HSEB is that it does not have the wherewithal to give new connections.

In the absence of a power connection, SSIs find it difficult to install generator sets. Adds Dadhichi,"100 per cent collateral is demanded on gensets."

Last year, the Haryana government set up a committee comprising Bhiwani's superintendent engineer of the HSEB, the general manager of DIC, and a representative of industry. The committee is chaired by the SE and the GM, DIC, is member-secretary. "We look after the interests of industry," says an industry department official. "Open house is held once every three months. We meet the consumers once a month and in the process have solved many cases."

Sometimes, the concerned officials do not get to know about the problems of industry. Entrepreneurs meet junior functionaries in government departments to apprise them of their woes, and are assured that now the authorities will help them out. Most often, the problem is not communicated to the top man in the department either because the junior officer doesn't bother to inform the head of the department or gets transferred. "I often come across industrialists who complain that I have not attended to theirproblems, even though I am not even aware of them," says a senior official.

Many entrepreneurs, however, doubt the sincerity of bureaucrats. Virender Singh of Cotsfil Industries, bulk manufacturers of bleach and grey cotton wadding, feels that the authorities lured entrepreneurs into setting up industry in Bhiwani. "There would be a single-window system, the place is clean, all facilities would be available. But what we got was a letdown. You have to run around for even minor things," says Singh. The Promised Land turned out to be a big joke, say some businessmen.

Though there may be some gap between the promises and the efforts of the government, Bhiwani is still better than many industrial estates of Delhi as far as infrastructural facilities are concerned. If the entrepreneurs become a little more active and responsive, there is no reason why there problems can't be solved.

When FE Enterprise asked Dr R B Langayan, additional deputy commission, Bhiwani, about this problem, he promised to take up thematter promptly with the HSEB. In fact, he immediately questioned the concerned HSEB official about the lapse.

The problem got compounded because he was not even aware of it. All the cases of non-availability of power connections that were brought to him were those of the priority sector--namely, the Prime Minister Rojgar Yojna and the Rural Industry Scheme.

Officials at the District Industries Centre (DIC), Bhiwani, say that the entrepreneurs should also share the blame for this inordinate delay. "Their associations don't come up with their problems and the suggestions to solve them. We prepared the district industrialisation plan and asked for their suggestions. There was not a single response," says an official.

He, however, accepts that the reason given by the HSEB for delays in providing connections--that is, there is shortage of material--does not hold good. Industrialists lament that the HSEB has charged for the material required and yet not given connections for two years.