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February 10, 1999

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Business, bucks and guns

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The speedy industrialisation of Dadra and Nagar Haveli may be a boon for the investment-starved region -- but for its entrepreneurs, it has brought the menace of extortion.

The once-lethargic Union territory has more than 2000 industrial and service units now, including some belonging to big corporate names. The units are spread over Silvassa, Dadra, Piparia, Amli, Masat, Khadoli, Rakholi, Sayli, Athal, Naroli, Sili and Khanvel.

Many businessmen admitted that they are intimidated by threats from extortionists. Discreet queries revealed that there was no one group behind the phenomenon, but different groups, representing different interests.

A prominent businessman claimed that some locals, who got carried away witnessing the changing face of the UT, were behind the crime. Another said a group from the neighbouring state of Gujarat was behind it.

''What can we do about it? Somebody pops into your industrial unit and brandishes a chopper. You quietly pay up,'' said the businessman.

A source revealed that employees of a well-known corporate were also threatened. ''They got so scared that they ran away,'' he said.

The UT authorities maintain that business houses would have to win the confidence of the locals to enable both to exist peacefully. Industrial development in Silvassa and other areas came as a 'culture shock' to the locals, and the tendency to extort is just one of the manifestations of this, they felt.

Observers familiar with the region say the locals should be given a share of the pie to get around such problems. ''There is a clear dichotomy existing between the business (haves) and the locals (have-nots)'', they noted, adding that friction between the sides would take some time to ease.

The administration, for its part, is going ahead with the plans to develop Dadra and Nagar Haveli as a prominent industrial and tourism hub.

According to Ramesh Negi, the administrator of the territory, the plans include leasing out resorts and tourist places to private entities, so that a fixed return is ensured. The authorities are also widening roads and taking up water supply and sewerage projects. A 220 kw sub-station will come up shortly.

The industries that have set shop in the territory were encouraged on account of the various tax incentives offered, including a five-year tax holiday.

Negi said the administration was taking steps to ensure that the economic development of the region balances with the aspirations of the local people. ''The industries have been directed to recruit 80 per cent of manpower from among the locals,'' he said. "Development in a manner that intrudes on local traditions and customs was undesirable."

The industries, organised under the Silvassa Industries Association, too, are slowly making efforts for social development. SIA president Harshad Doshi said they were funding schools for tribal children.

UNI

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