Save Punjab industries & save Punjab from economic disaster: PD Sharma
Author(s): City Air NewsPD Sharma, president, Apex Chamber of Commerce and Industry (Punjab). Ludhiana, January 30, 2014: The Apex Chamber of Commerce and Industry (Punjab) president PD Sharma has said industry in the country is facing...
cityairnews
Jan 30, 2014 12:30
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PD Sharma, president, Apex Chamber of Commerce and Industry (Punjab).
Ludhiana, January 30, 2014: The Apex Chamber of Commerce and Industry (Punjab) president PD Sharma has said industry in the country is facing severe recession. Punjab is the worst hit. The costs of inputs are rising but sales are depressed.
The free & subsidize power is taking a heavy toll on Punjab industries. The data from power finance corporation of India for the year 2011-2012 through light on the burden of free power on industry.
In a statement issued here on Thursday, he added in the year 2011-2012 agriculture in Punjab consumed 29% of the power & industry consumed32% power. The revenue from the agriculture was nil & industry had to bear 50% burden of revenue. In comparison with Haryana agriculture consume 31% with revenue of 3% & industry consumed 26% with revenue burden of only 32%. In Maharashtra similar figures were consumption of power in agriculture sector 27% with a revenue of 12% & industry consumed 38% with a revenue burden of 49%. In Gujarat agriculture consumed 25% with a revenue of 13% & industry consumed 42% with a revenue burden of 56%. In the relatively poor state of Uttar Pradesh agriculture consumed 17% with a revenue of 7% & industry consumed 28% with a revenue of 40%. In Chhattisgarh agriculture consumed 16% with a revenue burden of 6% & industry consumed 40% with a revenue burden of 49%. From these figures it is clear that Punjab’s industry is bearing the heaviest burden of free & subsidize power. Moreover the taxes on power are the highest in Punjab. There is electricity duty (E.D) of 13% & 10 paisa per unit is charged as octroi on power. Thus Punjab’s industry is being crushed under the burden of power tariff and taxes.
Among the raw materials steel is a very common to industry. Even in this recessionary phase main steel producers have raised the prices of steel between Rs. 1000 & 1500 per ton. Earlier September last year the prices were raised by Rs. 2500 per ton.
The cost of credit is very high for industry & particularly the MSME sector. RBI has again raised the bank interest rates by 0.25%. RBI has raised these rates despite cries from the industry. RBI has kept in mind the high inflation. Food & fuel have a combined weight of 57.1% & RBI has no control on the prices of these commodities. Moreover inflation has been very high for the last so many years & RBI prescription of raising rates has not worked.
State government with ever changing rules & regulations is increasing the transaction cost of industry.
Industry after industry is shedding labour in the country due to recessionary trend. Punjab has a large share of MSME sector in its industrial economy. The share of labour intensive industry in Punjab is very high. Due to central government policies on labour the cost of labour is ever on the rise.
“Punjab government is urged to take account of all these sectors to save Punjab industries & save Punjab from economic disaster”, said Sharma.//ludhiana news online, ludhiana news in English, ludhiana news, ludhiana current news, ludhiana news live, Ludhiana breaking news, Ludhiana headlines, Ludhiana latest news, punjab news, india news, punjab news live, punjab news online, punjab news, punjab news headlines, punjab breaking news, india news, punjab news,
