Subsidies bad for backward areas: NGO

new delhi: a recent study conducted in maharashtra, madhya pradesh and andhra pradesh has found that state government’s attempts to promote industries in the backward areas have resulted in no local development except blighted regions, negligible jobs for the locals, and industries deserting the regions once subsidies dry up. pria, an ngo, that conducted the study in certain industrial areas in the three states and in sri lanka to analyse the role of industry, government, workers and local communities, found that industrial units batten on tax holidays and cheap electricity, violate environmental laws with impunity, and have no local commitments. to attract industry, many states allocate land in backward districts by giving subsidies such as tax exemptions and cheap power. it was found that since 1989 as many as 216 industrial units were set up in bhind in mp, but now only 50 units are operational, with very few local employees, and there was not a single hazardous waste treatment facility.