Press Note

Dated: 23.01.2013



Before the meeting with the Honb'le Prime Minister of India Sh. Manmohan Singh, Sh. Gurmeet Singh Kular, President of the United Cycle & Parts Mfrs Association submitted memorandum to the Honb'le Chief Minister of Punjab S. Parkash Singh Badal for discussing the problems of the Bicycle Industries. The following points were discussed with the Honb'le prime minister of India S. Manmohan Singh along with the Honb'le Chief Minister of Punjab S. Parkash Singh Badal. Also seen in the picture SH. PANKAJ MUNJAL PRESIDENT OF ALL INDIA CYCLE MANUFACTURER\'S ASSOCIATION & Sh. D.Raghuram, President M/s. T.I Cycles of India of Chennai.



1. CENTRAL EXCISE DUTY:



Complete Abolish of 2.06% central excise duty on bicycles, as this industry pays 12.36% central excise on the raw material & other inputs which is not refunded any where this makes us uncompetitive in international markets.



2. FREIGHT EQUALIZATION :-



Ludhiana being hub of the manufacturing of bicycle & parts is situated far away from the sea port due to which industry has to pay excess freight on the goods and this make them costly and uncompetitive in international markets, It is requested to give freight equalization scheme to the industry in order to reduce the cost and to increase the share in Global market. Due to geographical situation of the state, the Raw Material which is Iron Ore comes from the distant state which makes the industry uncompetitive within the country. Raw material should be available at unanimous prices to everyone within the country for fair business.



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3. TECHNOLOGY UP-GRADATION FUND(TUF):



Like textile industry bicycle / engineering industry should also been given privilege of TUF scheme in order to boost the industry. 5% interest subsidy on purchase of new machinery should be available for bicycle & engineering industry also. Subsidy to below poverty line class of society for bicycle purchase was discussed.



4. CREDIT LINKED CAPITAL SUBSIDY SCHEME(CLCSS):



In this scheme the maximum limit is ONE CRORE at present which is very small in today's time. Limit should be increased to 10 cr. So that industry can take maximum benefit.



5. INCREASE OF IMPORT DUTY ON BICYCLE & PARTS TO 50% :



It is our humble request to increase Import duty on Bicycle & parts as huge quantity of items are being imported in the country and are destroying the MSME sector because they are facing closure due to cheap and sub standard goods. This should be valid on SAFTA /ISAFTA countries also as they do not have any duty on import of goods and are posing threat of cheap imports.



6. "MADE IN INDIA" PRODUCTS TO BE USED IN BICYCLE TENDERS:



As the Government of different States Buy Bicycles to distribute free to the poor people, It is our request that these bicycles should be fully indigenous Indian bicycles "Made in India" to have true patriotism for the country & to protect the home industry from closing down. Further by using imported parts we loose our valued foreign exchange. So it should be mandatory to use 100 % Indian Manufactured Items.



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7. SEPARATE BICYCLE LANES IN THE CITIES OF INDIA:



It is our suggestion that the government should plan separate bicycle lanes as in European countries to protect the slow moving public and to boost people to use maximum bicycles as it is good for health and is eco friendly.





8. SPECIAL ECONOMIC ZONE FOR BICYCLE INDUSTRY:

SEZ should be developed for the bicycle industry to have proper Concentration of the industry.



9. LOW RATE OF INTEREST TO MICRO & SMALL INDUSTRIES:



Micro & Small scale units are back bone of industry. Banks are charging 13% to 16% rate of interest which is totally un-viable to run the units; we request to reduce the rate of interest to 7% in order to protect them from extinction.



We hope that our request will be considered for the benefit of industry and nation.


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