New Delhi : The Apex Chamber of Commerce and Industry of NCT of Delhi, which represents more than 65 major industrial area associations of the National Capital Region and thousands of MSMEs, has written a letter to Chief Minister Rekha Gupta drawing her attention to the problems being faced by small and medium industries. Copies of the letter have also been sent to Delhiās Industry Minister Manjinder Singh Sirsa, Additional Chief Secretary (Industries) Vipul Pathak, and Managing Director, DSIIDC, Ms. Nazuk Kumar.
The President of the Apex Chamber, Kapil Chopra, Vice President Raghuvansh Arora, and General Secretary Sunil Chadha, in their letter to the Chief Minister, have sought her intervention on several long-pending issues that are severely affecting Delhiās industrial ecosystem, especially Micro, Small and Medium Enterprises (MSMEs) and SMEs. They stated that MSMEs/SMEs are the backbone of Delhiās economy and among the largest contributors to employment generation. In the letter, they appreciated the Chief Ministerās assurances regarding easing industrial regulations and proactively resolving industry-related issues. Through the letter, they requested the Chief Minister to address the following issues, which are creating serious challenges in sustaining industrial investment and employment:
Freehold and Conversion Charges
Freehold conversion has remained a long-pending and critical issue for Delhiās industrial sector. Non-freehold status and high conversion charges continue to hinder investment, redevelopment, and technological upgradation. Despite court verdicts on this matter and repeated requests by the Apex Chamber, it has not yet been implemented. The Chief Minister has been requested to grant freehold status to all industrial plots/sheds in Delhi, reduce conversion charges, and simplify the conversion process. Permission should be granted for conversion on every floor for mixed-use redevelopment, enabling vertical expansion without penalty costs. Additionally, the permissible FAR (Floor Area Ratio) should be increased to enhance utilization of existing land for modern manufacturing and warehouse upgrades.
High Electricity Tariffs
The issue of high electricity tariffs was also highlighted. Industrial electricity tariffs in Delhi are among the highest in the country due to multiple additional levies such as PPAC, 8% surcharge, 7% pension fund, and 5% electricity duty, which significantly increase overall costs. These need to be rationalized. DISCOMs collect 5% electricity duty from every industrial unit in Delhi, which is meant to provide basic civic amenities in industrial areas, including proper and functional street lighting. However, in many industrial areas, street lights are either missing or non-functional, leading to serious safety and security concerns, especially during night operations and movement of goods. It was requested that the funds collected under this duty be strictly utilized for electrification and maintenance of industrial areas.
Shortage of Drinking Water
Most industrial areas in Delhi continue to face a shortage of regular and potable water supply. Even where water connections exist, tariffs are very high, forcing industries to depend heavily on expensive private water tankers. Despite repeated representations by the Apex Chamber, no structured or time-bound solution has been implemented so far. The Apex Chamber has suggested that industrial water tariffs should be aligned with those in neighboring states such as Haryana, Uttar Pradesh, and Punjab, and that piped drinking water systems must be installed in every industrial estate.
Waterlogging, Drainage, and Poor Sewer Maintenance
In many industrial areas, persistent waterlogging is no longer limited to the monsoon season and often continues for several days. Choked drains and frequent sewer overflows result in sewage water accumulating on internal roads. Despite repeated complaints, these issues often remain unattended for days. This ongoing situation poses serious health risks, leads to the spread of diseases, causes repeated damage to industrial infrastructure, and results in substantial production losses. The primary reason cited is the lack of coordination among concerned civic agencies. The Apex Chamber has demanded the preparation of zone-wise drainage and sewer upgradation plans for industrial areas with clear timelines, and the assignment of accountability to a single nodal agency for maintenance of sewers, stormwater drains, and drainage systems.
Higher Minimum Wages Compared to Neighboring States
Delhiās minimum wages for unskilled labor/workers are the highest in India, significantly increasing operational costs for MSMEs/SMEs. For example, minimum monthly wages are ā¹11,257 in Haryana, ā¹10,701 in Uttar Pradesh, ā¹10,996 in Punjab, and ā¹7,410 in Rajasthan, whereas in Delhi they are ā¹18,456. The Apex Chamber suggested introducing industry-specific labor rates or exemptions/subsidies for micro and small units, and considering separate or lower salary slabs for small industrial units.
Poor Condition of Roads
There is a complete lack of regular maintenance in industrial areas. Garbage and waste remain on roads for several days, and internal as well as access roads are in severely deteriorated condition, posing serious transportation and safety risks. Even where sewer cleaning is undertaken after repeated complaints, the extracted sludge and toxic waste are left exposed on roads for days, further worsening conditions. The government has been urged to address this issue by implementing regular cleaning and road inspection mechanisms through local bodies. Additionally, common infrastructure solutions such as CETPs, waste management, and pollution control facilities should be developed.
Stalled Redevelopment of Notified Industrial Areas
Redevelopment of notified industrial areas has remained stalled for over a decade. DPRs should be finalized and approved on a priority basis after consultation with stakeholders. Funds generated from freehold conversion and other industrial revenues should be specifically utilized for redevelopment works.
Request for an Interaction Meeting
Office bearers of the Apex Chamber of Commerce and Industry have requested a meeting with the Chief Minister to discuss all these issues with a delegation of the Chamber. They have proposed that all concerned ministers and officials be present, including Parvesh Verma (PWD and Water Minister), Ashish Sood (Power Minister), Vipul Pathak, IAS (ACS Industries), Ms. Nazuk Kumar, IAS (MD, DSIIDC), and Raja Iqbal Singh (Mayor, MCD), so that meaningful discussions can take place to resolve these issues.
