Facing financial crisis, Baddi Barotiwala Nalagarh Development Authority puts key works on hold

A shortage of funds has put key development works in the industrial area on hold as the Baddi Barotiwala Nalagarh Development Authority (BBNDA) has been allocated only Rs 2 lakh each for the previous and current financial years as annual budget.

A pittance, lament investors

• The Baddi Barotiwala Nalagarh Development Authority (BBNDA) has received only Rs 2 lakh each for the previous and current financial years as annual budget
• The development authority had received liberal grants worth crores of rupees earlier that enabled it to carry out a slew of development works such as road repair.
• It received ~ 42.07 cr in 2020-2021, ~ 21.57 cr in 2021- 2022, ~ 20 cr in 2022-23
• Investors lamented that the budget has been reduced to a pittance given the demand to spruce up link roads and lanes, improve water supply, etc.

It is worth mentioning that the development authority had received liberal grants worth crores of rupees earlier that enabled it to carry out a slew of development works such as road repair. It received Rs 42.07 crore in 2020-2021 and Rs 21.57 crore in 2021- 2022. Besides, the state government provided it Rs 20 crore in 2022-23.

Investors have been demanding a grant of Rs 100 crore from the state government as they pay taxes and contribute in a big way to the state Gross Domestic Product (GDP).

The area houses nearly 1,800 industrial houses comprising more than 90 per cent of the state’s industry.

Alleging that the BBNDA had become a powerless body, Rajiv Aggarwal, president of the Baddi Barotiwala Nalagarh Industries Association, said, “We have been persistently demanding the state government to grant an annual budget of Rs 100 crore to the authority so that it doesn’t face a fund shortage for infrastructure development works.”

Investors lamented that the budget has been reduced to only Rs 2 lakh, which is a pittance given the demand to spruce up link roads and lanes, improve water supply, etc. Though this work is also undertaken by the municipal councils of Baddi and Nalagarh, they merely cater to the needs of the two towns, they argued.

The poor financial health of the state is being reflected in the budgetary provision made for this authority and it also indicates the lack of significance accorded to this key industrial cluster by the state government.

Investors rued that though they were the major employment providers in the state, the indifference of the state government would not augur well for the upkeep of civic facilities in this cluster.

Since MNCs often receive foreign dignitaries from their overseas offices, the poor state of roads, overflowing sewage, improper garbage management, show the state’s ill-preparedness for business investment.

Replying to this significant issue in the ongoing Vidhan Sabha session, the government stated that the authority generated its own funds from various levies, and pending unspent money from previous years was available with the body to meet its liabilities. The Covid pandemic was also cited as a reason behind the state’s diping finances. This plea of the state government, however, holds no water as the BJP government had extended crores to the authority even during the Covid-19 era.