PM: Delhi-Mumbai Industrial Corridor being extended upto Ludhiana

Ludhiana, December 8, 2012: A group of local leading industrialists led by the Union Minister Manish Tewari met the Prime Minister, Dr. Manmohan Singh here today.

The PM was here to attend a convention at PAU.

As per the available information, the issues discussed during the meeting with the Prime Minister in PAU, Ludhiana by the delegation of the industrialists included the issue of Cross Subsidy. It was discussed that it has an additional cost of about 85 paisa per unit. The Electricity Act 2003 has provided for the elimination of the Cross Subsidy in a phased manner. The cross subsidy is still continuing and needs reconsideration of the Government of India on this issue which is affecting the competitiveness in the industry.

The issue of GST was also discussed with the PM. The industry representatives requested for the early implementation of the GST to which the Prime Minister responded that the consensus process with the states is going on to expedite implementation.

On the issue of labour reforms with regard to flexible working hours, it was expressed that due to political dispensation, it is not possible to bring in major reforms relating to Hiring and Firing etc , but certain flexibility in the labour laws may be initiated. One idea given was related with flexibility in working hours. In certain countries like Germany and China have adopted flexible hours with a provision of fixing total number of working hours in a specific period say a month or a year. Similar reforms may be introduced in India also, it was urged upon by the industry representatives.

Regarding fixed term employment, it was stated that certain labour intensive and seasonal industries like garmenting require large labour force when the orders are high and to reduce the labour force when orders are low. To address this issue the concept of ‘Fixed Term Employment’ under which employment is given for pre-determined time period and wage compensations and other statutory benefits are in line with the regular workers. However, fixed term employees do not have right of regularisation after the completion of fixed term. This provision was there earlier also, which may be re-instated, the industrialists demanded.

With regard to application of MNREGA in the Industrial Sector, it was suggested that the 100 days employment under the MNREGA can be extended to the industrial sector for entry level workers, where in addition to the eligible amount under MNREGA, the industry can also contribute. The number of days under MNREGA can cover the training and skill development period for entry level workers which may be subsequently regularised as normal workers.

The industry representatives also discussed about new Company Law Bill. They pointed out that there are certain provisions in new company law bill, where a director of a company can be prosecuted and sentenced to imprisonment even before proving guilty. This may be looked into, they sought.

About the issue of air connectivity, the industrialists requested to expand and regularise the Ludhiana Airport for increasing connectivity with Delhi and other places.

Regarding another issue of Delhi-Mumbai Industrial Corridor, some members requested for the extension of the Westerns corridor to Punjab. For which the Prime Minister mentioned it is being done up to Ludhiana.

With regard to education reforms, some of the members from industry suggested for reforms in education sector by reducing the control of government and statutory regulatory authorities. This is to improve the standard of education to international level and to make India a Global Education Hub, where foreign students can be attracted, they said.

Also, about the Institute of Excellence for Ludhiana, it was requested that an Institute of Higher learning be established in Ludhiana either by having an another campus of Panjab University, Chandigarh or through any other Institutional Mechanism.

The delegates included Pawan Dewan, President DCC (U), Ludhiana, Shri Pal Oswal, Kamal Oswal, Rajender Gupta . Mridula Jain, JR Singal, Sandeep Riat (Mini), Rakesh Gupta, Sanjeev Pahwa, Gurmeet Kular, Ranjodh Singh, K.N.S. Kang, O.P. Munjal. S.K. Rai Sanjay Gupta, Gurdeep Singh Ahluwalia, Gopi Kothari, D.L Sharma and Satish Dhanda.