A delegation of United cycle & Parts Manufacturers Association under the leadership

Ludhiana-27.07.2013



A delegation of United cycle & Parts Manufacturers Association under the leadership of S. Gurmeet Singh Kular , President met Hon'ble Union Minister of MSME , Sh. K.H Muniyappa guru at Delhi along with Sh. Madhav Lal, IAS, Secretary MSME and Sh. Amrednra Sinha, IAS Addl. Secretary and DC-MSME. A memorandum enumerating the following problems of the cycle industry was handed over to Sh. K.H Muniyappa, Hon'ble Union Minister of MSME : -



1. TECHNOLOGY UP-GRADATION FUND (TUF):

The Technology Upgradation Fund Scheme (TUFS) provides plan support for modernization of textiles industry in the form of interest reimbursement and capital subsidy. The sectors benefited under TUFS are Spinning, Weaving, Processing, Technical Textiles, Jute, Silk, Garmenting, Cotton Ginning, Wool and Power looms. The above industries has derived facilities like modernization machinery, infrastructures etc. but the Cycle industry which is the second largest one in India and provides employment more than half million peoples but no facility has been provided to this industry by the centre nor by the state government in budget 2013-14.



It is our humble request that like textile industry, The Bicycle / Engineering industry should also be given privilege of TUF scheme in order to boost the industry with modernization of Machinery and other Production facilities.

2. REGARDING FACTORY STUFFING :



I take this opportunity to apprise you about the problems faced by the industry in general and cycle industry in particular. Ludhiana is considered as the Manchester of the India and hub of industry which is scattered forms one corner to another corner of the city. The custom department has stopped factory stuffing of trading item, with the result the Exporters have to face difficulty regarding loading and unloading and this has lead to delayed shipment and added cost to the export.



It is humbly requested that this scheme of factory stuffing should be restored so that the industry may not face any difficulty for the export of the products.



3. REGARDING ENHANCEMENT OF CENTRAL EXCISE LIMIT :



Presently, MSMEs are exempted from the preview of central excise up to 1.5 crore of Annual Turnover. Consequent upon enormous increase in the cost of raw materials, process cost, labour, transportation etc. for the past few years , the limit of 1.5 crores annual turnover is no more significant when compared to present cost of production and needs to be enhanced to 5 crores.



4. Procurement of procedure from SMEs by central & state PSUs :



Both State and Union Governments have issued Orders to their Departments and respective Public Sector Undertakings to compulsorily procure 20% of their requirements from SMEs, the same are not being followed 10% price preference should be made mandatory in Punjab to improve the order book position of State SMEs and to better their performance. Hon'ble Minister is requested to take immediate necessary action in this regard and help the SMEs to improve their order book position.



5. Low rate of interest to MSMEs :



It is brought to the notice of Hon'ble Union Minister of MSME , Sh. K.H Muniyappa guru that the Banks provide the loan on a very high rate of interest which is too high for the MSMEs. 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. He is requested to instruct the department to provides low rate of interest for MSMEs so that the MSMEs may develop their infrastructure and production capacity, this will boost the MSMEs moral and make them able to compete in the international market.





In the meeting the following members were present: Sh. Manjinder Singh Sachdeva, General Secretary, Sh. Rajeev Jain of R & R Bikes and Sh. Jagatvir Singh of Ason Industries.


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