PHD Chamber of Commerce & Industry seeks Steel Price Regulatory Committee

Ludhiana, September 7, 2014: A delegation of PHD Chamber of Commerce & Industry met Madav Lal, Secretary of MSME Govt of India at Chandigarh under the leadership of Gurmeet Singh Kular, Chairman Ludhiana Zone of PHD Chamber & President FICO, along with Rajeev Jain & discussed certain issues.
TUF scheme for Bicycle industry:
As trends of the global market is changing very fast and the industry has to keep themselves up-graded we request you to give Technology Up gradation Fund(TUF) scheme for bicycle industry as like textile industry ,so that we can upgrade our technology with changing time  and increase our market share in Global market. Now India is not feeding to the Europe and developed countries
MSME Bank & Credit card for MSMEs:
Government should create a MSME Bank that bank serve only MSME Industry and the rates of  advances should not be more than 8% because this industry is back bone of our economy. Every MSME industry should have a credit card for discount in different scheme of government and emergency funding on basics of credential of MSME.
International Cooperation Scheme:
International scheme should be reopened as we have to visit China again and again to see the technologies.
Import duty on Bicycle & Parts:
As Ludhiana is the base of bicycle industry, which requires main attention, this industry gives employment to half a million people and also earn foreign exchange for the country being the second largest manufacturer of bicycle & parts in the world. Imports from China & other countries are hitting hard to this industry, many small manufacturing units have close down due to import of finish goods from China. Though there is 30% duty on complete bicycle & 20 % on bicycle parts still huge quantity of goods come in India direct from China or via SAARC Countries at low /under invoicing. It is our humble request to increase the import duty on both bicycle & parts to 50%.Further Original Bill of entry should be called while calculating the customs duty as like done online in African countries (COMESA), so that government do not loose revenue due to under invoicing.  
Credit Link Capital Subsidy Scheme:
It is very great full that the government has given CLCSS to industry. There is cap of  1 crore we request you to increase the cap to 5 crore and  subsidy percentage  should be increase from 15% to 25%
Subsidy on Used Imported Machines:  
As we are representing the small & micro sector which cannot afford the costly imported machine but have will to up- grade the technology .It is our humble request to allow subsidy on used imported machines imported by small & micro units. This will help us to increase production, in automation and quality will increase manifold which will also reduce price of the products.
Abolish of 2% central excise on complete bicycle:  
Bicycle being the “poor man luxury vehicle” plays very important role in price. As Complete bicycle attracts the central excise duty of 2% the price is increased by Rs.50 on basic cycle which directly hits the poor man’s pocket. It is our humble submission that central excise on complete bicycle should be abolished to save the masses.  Moreover no refund of central excise duty is given where as central excise of 12.36% is been given on the raw material used the bicycle industry. Our industry is becoming uncompetitive in International market and are loosing valuable foreign exchange for the country.  
Use of indigenous Indian parts in Government tenders:
As government of different states are buying half a million bicycles to distribute free to public and this industry in mainly situated in Ludhiana which is mainly represented by MSME sector is suffering due to cheap imports of parts from China & other countries, This has resulted in closure of many small scale units like bicycle spokes, steel balls, basket, hub cone, pump, pedal axle  etc. It is our humble request in order to save MSME sector it should be mandatory for the tenders to use “Made in India” parts. This will save the industry & will give employment to people & save the foreign exchange from draining out of country.
Raising exemption limit of central excise:
Exemption limit of central excise at present is 1.5 crore which is on the lower side keeping in mind the inflation. This limit should be raised to 3 crore.
Steel Price regulatory Committee:
As India is major producer of Iron ore still the prices of steel are higher in India. This leads to unhealthy competition in global market. It is suggested to make Steel Price Regulatory Committee to control the prices.