SPV being created for Baikampady Industrial Area development

Team Udayavani, Sep 8, 2018, 11:03 AM IST

Mangaluru: The Dakshina Kannada district administration is planning to create a Special Purpose Vehicle (SPV) for the development of Baikampady Industrial Area.

The action for the creation of the SPV comes to quicken the pace of the work in the backdrop of the wait for the much demanded ‘Baikampady Township Authority’. The many industry associations from Baikampady have submitted a request in this regard to the district administration.

Other than the huge industries including MRPL, ONGC at Baikampady, there are around 650 smaller industries here which will register themselves under the SPV.

Deputy Commissioner of the district will be the president of the newly formed SPV, and will include the commissioner of the corporation, 6 members from the government and 6 members from Baikampady Industrial Area will make up the SPV. The rules and responsibilities of the committee are being created and discussions are being carried with legal experts.

SPV and its profits

The corporation is receiving tax from all the industries in Baikampady Industrial area. But, in response, the corporation has not taken any action towards the development of the industrial area. Hence, the industrial area is suffering from neglect, accuse the industrialists here. Therefore, with the creation of the SPV, there is an aim is to tax can be collected through it, a prescribed amount can be given to the corporation and thereby the area can be managed.

Currently, the illegal parking in the industrial area has crossed limits and also the local industries have to do all the work including hiring of staff. The administration facility is not taking any interest in this. But, with the creation of the SPV, the committee will take decisions on providing basic infrastructure, including drinking water, underground drainage, road, electricity and other facilities.

MRPL, ONGC Township

The much awaited ‘Baikampady Industrial Township Authority’ has already received the green signal an is being implemented in phases. This will include the massive industries like MRPL, ONGC< HPCL and the other 650 small industries in Baikampady. The specific authority president here will be given the complete authority here.

SPV of Yeyyadi, Puttur?

Baikampady Industrial Area which was established 47 years back covers approximately 1,407.16 acres of land. This area is now coming under KIADB’s limits. But, since KIADB has not received enough funds from the government, management is not being feasible. At the same time, the corporation and local institutions were only collecting tax but not indulging in any development. Hence, a specific SPV creation has been aimed. Keeping this has a model; it is possible to create a similar type SPV for industrial areas at Yeyyadi, Puttur and Karnad.