Save existing industry of Punjab: FICO to CM 

Ludhiana, October 11, 2022: A delegation of the Federation of Industrial & Commercial Organization (FICO) under the leadership of K.K. Seth Chairman and Gurmeet Singh Kular President FICO met Bhagwant Singh Mann Chief Minister Punjab, and submitted a written Memorandum regarding the industrial issues seeking immediate resolution. This meeting was arranged by Vikramjeet Singh Sahni Member Parliament Rajya Sabha. FICO demanded to save the existing industry of Punjab:

Save Existing Industry

There is a dire need to save the existing industry established in Punjab, to fulfil the incentives for the existing industry also must be provided as according to the latest industrial policy of Punjab, there is a clause to invest 50% of its original fixed capital investment only then the incentive will be eligible, that too on the additional amount increased in FCI, this should be abolished and benefits rather should be available to any industry based on what so ever investment they make in its fixed capital, that too multiple time incentive benefits must be available, The government should encourage inter-state competition, not competition within the state.

PSIEC Enhancement Case of Phase VIII Focal Point Ludhiana:

Almost 6 years back PSIEC issued a notice of Rs.249/- per square yard to Focal Point Phase VIII Allottees, which was finally settled at Rs.24/- per square yard. Then, again PSIEC again issued a notice and demanded Rs.474/- per square yard from Focal point Phase VIII allottees, whereas PSIEC have already taken 100% anticipatory enhancement. Now with inclusions of interest & other charges, the cost has reached around Rs.1000/- per square yard, which is totally unjustified and unviable. It is requested that the penal interest should be immediately waived off as interest @ 21% is being charged when the Rate of Interest of any Bank is not more than 7 %. 

Dhanansu Cycle Valley:

In year 2016 the Government has introduced the Dhanansu Cycle Valley dedicated to Cycle Industry, but now the it has been renamed as Hi tech Valley, Dhanansu. The plots have been allotted to 4 big corporates but no plot of the same has been allotted to the MSME Sector yet. The government should plan and allot plots in small size to allotted for the Micro & Small Enterprises that too on subsidized rates for 99 years lease, as done in past. 

Electricity @ Rs. 5/- per unit:

The Government must ensure the High-Quality uninterrupted Power Supply and must make sure that the electricity will be provided @ Rs. 5 Net all-inclusive to the industry.

Unauthorized Use of Electricity Charges:

Recently the PSPCL has issued penalties under Unauthorized Use of Electricity to the Small and Medium industry having electroplating units, induction heater units, considering them under Power Intensive Unit Categories. When industry is getting electricity through the meter and pay accordingly, then how it can be UUE, moreover, the PSPCL has been charging two times of the basic tariff which is totally unjustified how the industry especially the MSME Units who are already struggling for their survival because of the losses incurred due the Lockdowns & Curfews imposed to curb the Covid-19 Pandemic. During this hour of crisis, industry needs the hand holding by the government, not the Notices issued for UUE Charges.

Floor Area Ratio:

In view of increasing land prices, it is proposed to allow vertical factories. Unfortunately, the current industrial bye-laws Floor Area Ratio is 1:3; which includes the basement & stilt made for the parking purpose also. It is requested that the FAR must be increased and the industrialist must be allowed to raise the height of the building vertically for expansion purposes. Also, it is suggested that basement & stilt should specifically not be included in the calculation of FAR for industrial buildings, as in the case of commercial buildings

Carry Bags:

The Government of India has allowed the Manufacturing of Plastic Carry bags with minimum of 75 Microns, but Government of Punjab has banned the manufacturing of any kind of plastic bags. Whereas the carry bags manufactured in Delhi, Gujrat and other areas of the country are easily available in our market. Sir, imposing a ban and making people out of business is not a solution, rather government of Punjab should allow manufacturing of Bio-Degradable Carry Bags with Minimum of 75 Micros. 

TUF Scheme for Bicycle Industry

Bicycle Industry in the mother industry of Punjab which makes India the 2nd Largest Manufacturers of World, where as China is the Largest Manufacturer of Bicycles, but the Gap between the Manufacturing quantity of both is very high, China produces 20 Crores Bicycle Per year, whereas India only manufactures 1 Crore 30 lakhs bicycles per year. If the Government wants to reduce this gap, then the Technology Upgradation Fund scheme should be introduced for the bicycle industry, so that the bicycle industry gets the benefits up to 40 Crores. So, Bicycle Industry can upgrade themselves to compete with the world & to become India largest Manufacturers of Bicycle in the World.

Mixed Land Use Area’s:

More than 75 % of the Total Bicycle & Sewing Machine Industry of India, operates from Ludhiana, out of which the 90 % operates from the Mixed Land Use Areas and are registered under MSME and have been working for last 60-70 years, these small units are the suppliers of the mandatory products to large units. The last date for shifting the industry from MLU area is 18th Sept. 2023. For the efficient growth of Ludhiana, these industrial units must be provided relief to operate from Mixed Land Use areas.

Infrastructure & Security of Focal Points 

The Infrastructure of Industrial Areas & Focal Points is in very bad shape, recently few Roads have been constructed but the overall situation is bad, especially in monsoons the things turned worst, the sewerages went choked and started releasing water backwards on roads, huge water loggings have been observed leading to many minor incidents, no proper streets lights are available in focal points. Security of the Industrialist and the Labour should be ensured as there are many incidents of theft, snatching etc. have been observed, proper police patrolling should be ensured. Focal Points and Industrial Areas generate huge revenues for the state in the shape of taxes, yet they are neglected the most, things are even bad in Industrial Area C of Ludhiana. It is high time that the authorities must act and improve the infrastructure of focal points and industrial areas of the city. 

Amongst present were K.K. Seth Chairman FICO, Vipan Mittal Vice Chairman FICO, Gurmeet Singh Kular President FICO, Rajeev Jain General Secretary FICO, Ashpreet Singh Sahni Organizing Secretary FICO, Satnam Singh Makkar Propaganda Secretary FICO, Ajit Lakra Head Textile Division FICO, Gagnish Khurana Head Agricultural Implements Division FICO, Gurmukh Singh Rupal Head Sewing Machine Division FICO, Gurwinder Singh Sachdeva Head Trade Division FICO and Raghbir Singh Sohal Head Plywood Division FICO.