UNION BUDGET (2013-14): UCPMA wish list

Ludhiana, February 27, 2013: The Union Budget for the year 2013-2014 is to be announced tomorrow.

The United Cycle and Parts Manufacturers Association (UCPMA), Ludhiana president Gurmeet Singh Kular hopes to see following in the budget;

·         Complete abolition of 2.06% central excise duty on bicycles

·         The basic exemption on excise duty be increased from Rs. 1.50 crore to minimum Rs. 5 crore for smooth operation of industries

·         Ludhiana being hub of the manufacturing of bicycle and parts is situated far away from the sea port due to which industry has to pay excess freight on the goods and this make them costly and uncompetitive in international markets, Give freight equalisation scheme to the industry in order to reduce the cost and to increase the share in global market. Due to geographical situation of the state, the raw material -iron ore comes from the distant state which makes the industry uncompetitive within the country. Raw material should be available at unanimous prices to everyone within the country for fair business.

·         Like textile industry bicycle / engineering industry should also been given privilege of TUF scheme in order to boost the industry with modernisation of machinery and other production facilities. 5% interest subsidy on purchase of new machinery should be available for bicycle and engineering industry.

·         Increase import duty on bicycle and parts up to 50% as huge quantity of items are being imported in the country and are destroying the MSME sector because they are facing closure due to cheap and sub standard goods. This should be valid on SAFTA /ISAFTA countries also as they do not have any duty on import of goods and are posing threat of cheap imports.

·         SEZ should be developed for the bicycle industry to have proper concentration of the industry.

·         General basic exemption limit should be increased from Rs. 2 lakh  to Rs. 3 lakh.