PRESS NOTE

Ludhiana-27.02.2013



The Annual Budget for the year 2013-2014 is going to be announced on 28th February 2013. In this contest the association which is the largest one in Asia in single trade has all ready requested the Honb'le Prime Minister and Honb'le Finance Minister to give relief to the MSME Sector. It is again requested that the following proposal may be consider in the budget 2013-14 :-

1. REGARDING CENTRAL EXCISE DUTY:

a. Complete Abolish of 2.06% central excise duty on bicycles.

b. The basic exemption on excise duty be increased from 1.50 crore to minimum 5 crore for smooth operation of industries.



2. REGARDING 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.



3. REGARDING 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 with modernization of Machinery and other Production facilities. 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. REGARDING INCREASE OF IMPORT DUTY ON BICYCLE & PARTS TO 50% :

It is our humble request to increase Import duty on Bicycle & parts up to 50% 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.



5. REGARDING SPECIAL ECONOMIC ZONE FOR BICYCLE INDUSTRY:



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



6. It is further suggested that generally basic exemption limit should be increased from Rs. 2 Lac to Rs. 3 Lac.






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