FICO submits budget proposals to Chief Secretary Punjab

Ludhiana: FICO president Gurmeet Singh Kular and secretary Rajeev Jain met Karan Avtar Singh, Chief Secretary, Punjab, regarding the upcoming budget and problems being faced by industry and submitted a memorandum.
Key highlights of memorandum are as under:
• Power: - As now a days, Power Condition is very bad in Punjab both in Residential as well as Industrial Areas. You are requested to kindly intervene and resolve the issue.

• Labour Reforms: - When compared to its neighboring states, Punjab is the only state where industry needs to pay salary by cheques to the labourers, instead of Cash. This notification should be withdrawn to save the industry of Punjab.

• New Focal Point: - As New Focal Points are has been allotted in Dhanansu village in Ludhiana district. You are requested to start the allotment of the plots for the same as soon as possible, so that the industry gets the plots for growth & development of industry.

• Speedy VAT Refunds: - As GST is on the verge of implementation & Punjab sells its 80 to 85 % materials out of state & our VAT gets blocked. You are requested to release funds up to March 31, 2017.

• New Transport Nagar: - FICO also suggested there should be a new transport nagar in Ludhiana either in Sahnewal or Kohara to facilitate the Industry which is primarily situated in Focal Point, also the new transport nagar would be beneficial in terms of reduction of traffic in the city.

• Collectors Rates: - FICO suggested that the collector’s rates should be freezed for next five years.

• Infrastructure of Focal Point: - In the New Industrial Policy, Collection of VAT, Service Tax, Central Excise, Water & Sewerage Charges, collected from Focal Point should be used only for the development of that Focal Point because there is very bad condition of roads & infrastructure of Focal Points. Special Fund should be created in coming budget to develop existing focal point to model Focal point.

• Lower Rate of Interest for Machinery Purchase: - Government should focus more on the development of Industry. as we buy a car, it is very easy to get loan at the rate of 8% to 10% per annum. But if we purchase machinery we loan at much higher rate of interest ranging from 12% to 14%. So same category rates of interest should be applicable for the purchase of machinery.