The once-thriving mineral-based industrial hub of Beawar in Rajasthan is grappling with a severe existential crisis. Nearly half of its manufacturing units have already ceased operations, with the remaining ones teetering on the edge of permanent closure. In a desperate move, local industrialists have announced a shutdown and plan to petition the state's highest authority for urgent intervention.
Industry on the Brink: Shutdowns and a Planned Protest
Alarmed by the rapid decline, the Beawar Small Industries Association has decided to take collective action. On January 8, the industrialists will keep their units closed and submit a memorandum to the Chief Minister through the district collector. Their goal is to secure immediate government dialogue and a relief package to salvage what remains of this critical sector.
Representatives highlight that this industry was once a cornerstone of the state's mining potential. Today, the landscape is bleak, with stakeholders estimating that around 6,000 units across Rajasthan are now at risk due to the cascading effects of this crisis.
Root Causes of the Collapse
Industrialists point to a combination of debilitating factors that have steadily eroded their competitiveness. The primary issue is high electricity rates in Rajasthan, which are significantly more expensive compared to neighbouring states. This is compounded by rising overall production costs.
A critical double-blow comes from the movement of locally sourced raw materials to these neighbouring states. There, industries benefit from cheaper power and government subsidies, enabling them to manufacture finished products at lower costs and outprice Beawar's units. This drain of raw materials cripples the local value chain.
Further aggravating the situation are persistent transportation challenges, inadequate local infrastructure, and a notable absence of robust industrial support mechanisms from the state.
Demands for Survival and Revival
Facing an uphill battle, the stakeholders have outlined clear demands for the government. They are calling for the imposition of additional taxes on raw materials leaving Rajasthan to discourage the outflow. Furthermore, they seek direct subsidies on electricity rates to level the playing field with competitors.
A crucial long-term demand is the development of local industrial infrastructure to improve logistics and operational efficiency. The industrialists believe that timely intervention coupled with a targeted relief package could still bring this ailing sector back on track, preserving livelihoods and the regional economy.
The planned protest on January 8 represents a final plea for attention. The future of Beawar's mineral industry and the thousands dependent on it now hinges on the state government's response to this deepening crisis.
