CICU condemns Punjab Government's New Factory Act Rules, Citing excessive burden on SMEs
The Chamber of Industrial and Commercial Undertakings (CICU) Ludhiana has strongly condemned the Punjab government's recent proposal to implement new factory act rules, arguing that the changes will impose an unreasonable financial burden on small and medium enterprises (SMEs) in the state.
City Air News
Jul 18, 2024 02:50
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Ludhiana, July 18, 2024: The Chamber of Industrial and Commercial Undertakings (CICU) Ludhiana has strongly condemned the Punjab government's recent proposal to implement new factory act rules, arguing that the changes will impose an unreasonable financial burden on small and medium enterprises (SMEs) in the state.
CICU President Upkar Singh Ahuja stated that the proposed new rules will increase license fees by 3.5 times, creating a significant financial strain on businesses already struggling with various challenges. He emphasized that these regulations will further cripple the Punjab industry, which is already facing difficulties in maintaining operations. "As the ancient proverb goes, 'A chain is only as strong as its weakest link,' and these new rules threaten to break the very backbone of Punjab's industrial sector," Ahuja said.
CICU General Secretary Honey Sethi said, "The government's aim to achieve a 5 trillion economy is commendable, but such decisions will only serve to hinder industrial growth. The proposed new rules will force many businesses to close down, ultimately leading to job losses and economic stagnation."
Ahuja highlighted the disparity in license fees under the new rules, citing an example where the fee for a power connection between 101 to 250 kW will increase from ₹3,000 to ₹10,500. He urged the government to reconsider the implementation of these rules, warning that the industry will be forced to shut down if the proposal.
"We implore the government to understand the dire consequences of these regulations and take immediate action to rectify the situation," Ahuja concluded. "The survival of Punjab's industrial sector depends on it."
