Mounting power tariffs, a rigid industrial policy and the indifferent attitude of the state government does not seem to have sent the right signals to prospective investors. Industrialists are sore over the high rates of external development charges (EDC), banning of transfer of industrial plots and increase in conversion charges. All these steps were initiated under the new industrial policy formulated by the Bansi Lal regime in 1997.

Says general secretary of the Gurgaon Industrial Association (GIA), Jagan Nath Mangla: ``The steep hike in power tariff has made industry in Haryana uncompetitive, compared to that in Rajasthan or Uttar Pradesh. The increase in CLU (change of land use) rates after the imposition of prohibition has further burdened industrialists''.

The PHD chamber of commerce and industry had also raised these issues at a meeting with the chief secretary, Haryana, R. S. Verma. The chamber had suggested the review of license fee and CLU rates besides highlighting the commercial land use rate of Rs 25 lakh per acre and the very steep renewal fee of Rs three crore for a 100 acre colony.

Industrialists have demanded that a power regulatory commission be set up in the state to bring transparency to tariff fixation. President of the Gurgaon Chamber of Commerce and Industry (GCCI), Rahul Kakkar, says that foreign investors want to set up units near the national capital and the two major centres are Gurgaon and Noida.

``The new investors only look at the industrial policy. While the UP government gives lot of sops to industrialists the same cannot be said of Haryana.'' Kakkar argues that the ban on transfer of plots should be lifted in the interest of industrial growth. Mangla, too, agrees with him when he says that the government should relax these provisions in it's much awaited industrial policy.

``We agree that at times the plots were transferred just for profiteering, but what must be seen in the larger perspective is that it is growth which has suffered in these two years,'' says Mangla. Another issue raised is abolition of octroi -- a promise made by the HVP's coalition partner, the Bharatiya Janata Party.

``They have been dilly-dallying this issue for a long time. The government, though, agrees in principal, but the matter of funding of municipal corporations obstructs their move,'' says Kakkar.

Kakkar believes that the industrialists would not mind paying higher power charges provided the government improves the quality of power supply.

The government, on the other hand, is banking on it's power restructuring programme. Entrepreneurs are now hoping for some changes in the new industrial policy which is expected to come out some time next year.