Surat: A textile processing unit in Sachin GIDC has alleged administrative harassment and delays in regulatory clearances that have forced it to shut operations, despite an investment of over ₹20 crore and employment generation for nearly 200 workers.

Shree Process, located at Plot No. 431/1 in Sachin GIDC, commenced operations in September 2023. According to the unit’s management, the factory has been unable to continue operations due to pending Right of Use (ROU) charges related to utility connections, even though it claims to have repeatedly expressed its willingness to pay the dues.

Under GIDC regulations, industries are required to obtain ROU permission for laying water, drainage, and Common Effluent Treatment Plant (CETP) pipelines. The process involves an online application, followed by a site inspection and measurement by officials. Based on the area utilized, GIDC levies charges equivalent to 10 years’ rent, while the notified authority collects excavation restoration charges.

The unit’s management said it had already paid ₹3.35 lakh towards charges demanded through the notified authority. However, the GIDC component of the payment remained pending, allegedly due to an oversight or lack of information. The company claims it submitted multiple written representations requesting authorities to accept the outstanding amount but did not receive a resolution.

The closure of the unit has reportedly affected around 200 workers employed at the facility. Industry representatives argue that the situation is particularly concerning given the substantial investment made in the project and the government’s stated commitment to promoting industrial growth and ease of doing business.

According to the company, it has now deposited an advance amount of ₹5 lakh towards the pending GIDC charges. The management claims the actual payable amount is likely to be less than ₹4 lakh after final calculation. Despite this, the issue remains unresolved.

The dispute has also raised questions among local industrialists about why the pending ROU charges were not identified and recovered earlier if they had remained unpaid since the unit began operations. They further question why the matter has not been settled despite the company’s willingness to clear the dues.

The allegations have sparked concern within the industrial community, with some business owners claiming that bureaucratic delays and administrative hurdles could undermine efforts by the Centre and the Gujarat government to encourage investment and industrial development. GIDC officials were yet to comment on the allegations. DeshGujarat