Save Mixed Land Use Industries: FICO

Ludhiana, February 14, 2023: A delegation of the Federation of Industrial & Commercial Organization (FICO) under the leadership of Gurmeet Singh Kular President and Rajeev Jain General Secretary FICO met Vijay Kumar Janjua  Chief Secretary Government of Punjab, and discussed the industrial issues seeking immediate attention.

MIXED LAND USE AREAS OF LUDHIANA
More than 75 % of the Total Bicycle & Sewing Machine Industry of India, operates from Ludhiana, out of which 90 % operates from the Mixed Land Use Areas and are registered under MSME and have been working for the 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 the MLU area is 18th Sept. 2023. For the efficient growth of Ludhiana, these industrial units must be provided relief and the Mixed Land Use Areas must be declared as designated Industrial Areas.

SAVE EXISTING BICYCLE INDUSTRY
There is a dire need to save the existing bicycle and bicycle parts manufacturing units 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.

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.

BILATERAL TRADE WITH PAKISTAN
On behalf of the Bicycle Industry we demand bilateral Trade with Pakistan Specially Bicycle & Bicycle Parts because Bicycle Can reach Pakistan through Punjab So that MSME of Punjab can be benefitted but requested union Government to take up issue with Pakistan as Bicycle & Bicycle Parts are in the Negative List. He further said that due to fall in import there is an acute shortage of containers in India, as inflow of containers is very less, which results in piling up of finished stock and a panic situation amongst the buyers, moreover the prices of containers are also sky high, it is the high time government should intervene and resolve the issue.

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 %. 

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.