Rourkela, Oct. 5: A large number of industries are closing down in Sundargarh district, once known for its industrial establishments.

An industrialist, not willing to be named, blamed the bureaucrats for the declining number of industries here. So far, 847 industrial units have shut down and many more may close down in the near future. The industrialist said: "If the state government policies do not become conducive for the sustainable growth of industries, Sundargarh will no more be considered to be an industrially advanced district."

At present, the district has two bodies - the regional centre for industries (RCI) at Rourkela, headed by a general manager and the district industries centre (DIC) at Sundargarh, headed by a director-level official.

The Rourkela centre controls the industries based in Bonai, Kora, Bisra, Nuagaon, Lahunipara, Gurundia, Lathikata and Kahunipara, while the Sundargarh centre takes care of the industries in nine blocks, including Sundargarh, Rajgangpur, Lefripara and Sabdega.

According to the data released by these centres, there existed more than 2,000 big, medium, small and micro registered industries in the district.

More than 800 micro industries, over 150 small industries and eight medium industries are in a bad shape under the Rourkela centre, while 207 have already closed down.

More than 1,300 small industries were registered under the Sundargarh centre some years back. This centre is now home to four medium, nine large industries and a host of small and micro industries.

Once Sundargarh had the largest concentration of sponge iron units (41) in the state. Today, barely a dozen are functioning.

The general manager of RCI, Rourkela, Saroj Kumar Mohanty, said: "The slump in the steel market, lack of orders from the Rourkela Steel Plant and non-payment of bills are the three main reasons for the closure of the industries."

"Even industries churning out finished products are also feeling the pinch of the industrial slump," said Mohanty.

The director of Sundargarh, DIC, Mahendra Kumar Choudhury, said: "The shortage of raw materials, spiralling cost of production and lack of power subsidy are hampering the growth of industries and leading to their closure."

The former president of Rourkela Chamber of Commerce and Industries, Subha Pattnaik, said: "This is an alarming situation and the issue needs to be addressed at the earliest."