Tuesday, March 19, 2013

MEMORANDUM SUBMITTED TO S. SUKHBIR SINGH BADAL

LUDHIANA -19.03.2013



Before we may express our views we would like to kindly accept our heartiest well wishes on behalf of the 2250 MSME industrial unit's members. Our association is one of the most leading reputed and prestigious one in Asia in a single trade including exporters earning foreign exchange for the Country. We are very much oblige for the patronage provided to the small scale industry by the Government and have ample confidence that the Punjab Government will continue to keep the welfare of the small scale units in future also. Further we would like to have your sympathetic view on following points to protect the reeling bicycle industry.

1. SPECIAL PACKAGE FOR THE BICYCLE INDUSTRY

It is brought to your kind notice that out of total Bicycle Industry in the country, more than 92% are established in Punjab especially in Ludhiana City. It is proposed that a special package for the development of this industry be given like the neighboring states so that the MSME sector should not go out of the state which gives employment to peoples more the 5 Lac.

2. REGARDING NEW FOCAL POINT:-

To accelerate the industrialization towards fast pace of growth, we approach your kind office to design a new focal point adjacent to Ludhiana which is having a giant industry already in its fold and further for convenience of various ancillary wings, vendors etc attached to large scale units. At the very outset, we suggest marking proper area / zone for new focal point as the development presently has declined due to congestion in the limited square kilometers area of city.

3. REGARDING MIX LAND USE AREA :

In the Ludhiana Master Plan, more than 70 area / pockets which have been identified as for the purpose where industry may co-exist with the residential activity. In order to develop these areas it is our humble request that Mix Land Use Areas be declared as "Industrial Area" so that the units located in these areas may get facilities and benefits as being provided to other industrial area i.e. Industrial Area-A, Industrial-B, Industrial-C & Industrial Estate.







4. NO EXTENSION NO EXPANSION IN MIX LAND USE AREA :

Ludhiana industry is the one of the oldest industry in Punjab which has been running from last five decades. Most of the Small and Micro Industry is situated in Mix Land Areas as designated in Master Plan Ludhiana. We request the Government to give all the facilities to the industry for proper working in these areas. Extension of Power Loads and expansion of the units should be allowed in these areas. As these have been already allowed to run their units up to 2018 by the Government.

5. REGARDING SAC APPROVAL :

Sac Approval is highly cumbersome and time consuming process. This is the main hindrance for further growth and development of the small scale industries. In this regard, you are therefore requested that a policy of the prior approval from the site appraisal committee should not be made mandatory in the designated / specified industrial areas.

6. REGARDING ZONING VIOLENCE :

The Punjab had already suffered a lot during the terrorism period. The factories department of Labour should not enforce the implementation of Zoning Plan on existing industrial units and building already constructed, which are too old and were need based. The FAR should be reduced to 60% instead of the 90%.

7. VAT ON BICYCLES :

it is to bring your kind notice poor man's luxury vehicle and eco friendly special privilege should given to promote Bicycles like in neighbouring states, there is no vat on bicycles costing less than Rs. 3500.00 in Delhi. It is our humble request that the Vat on Bicycles less than 3500 should be abolished in Punjab also. So that more and more people use bicycles and the cycle industry will get the boost by increase in sales though the refund of big bicycle industry will increase but this Vat should be refunded within 30 days to these big manufacturers.

8. REGARDING VAT REFUND

It is for your kind information that refund of Vat of the members of the association is lying pending inspite of their repeated written and verbal requests though they have completed all the formalities required by the departments. Every time the members have been given to believe by the department that the refund will be release without further loss of time but sorry to point out Sir, their cases are still have been kept pending with 1 pretax or the other, locking up precious working capital of the industry as







your goodself know that liquid cash is the need of the our as the industry is already reeling under global economics crises. The department imposed condition that the applicants should not be defaulter in this respect up to the fourth stage of the transaction between buyer and the seller which is very cumbersome for the members to prove themselves free of these conditions. It is humbly requested that this condition should be abolished and should not be taken into account while deciding the vat refund cases of the units.

9. REGARDING MINIMUM WAGES ACT :

This is in reference to our discussion with S. Parminder Singh Dhindsa, Hon'ble Finance Minister, Punjab and Sh. Karan Avtar Singh, IAS, Principal Secretary; Labour Industries & Commerce Punjab that minimum wage should include all the allowances i.e. House rent etc. The same is as per provision of the Minimum Wages Act 1948 and bifurcation of the total wages be allowed.



10. REGARDING VAT ON e-BIKES & e-SCOOTERS :

It is brought to your kind notice sir that there is no vat on e-Bikes and e-Scooter in the States of Rajasthan, Uttarakhand and Delhi but in Punjab the vat on e-Bikes and e-Scooter is 14.85% which is very high. In order to develop these products, it is proposed that the vat should be like the vat realized on bicycles i.e. 6.05%.



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

Thanking you,










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