APEX Chamber of Commerce and Industry Punjab gives suggestions on new industrial policy of state

Ludhiana, August 3, 2013: Apex Chamber of Commerce and Industry Punjab President PD Sharma has written a letter to the Principle Secretary Industries and Commerce, Punjab, regarding New Industrial Policy of Punjab.

He gave the following suggestions:

•           Industry department should compile data of the existing industry with capacities in each sector. This will help the new investors to choose the rights industry without overcrowding. The existing capacity with this overcrowding. The existing industry may get further weakened.

•           The electric power scenario in Punjab is what it is. At least the taxes like electricity duty & octroi on power should be withdrawn by making them VATable.

•           Punjab is the home of MSME sector. Some incentive schemes are evolved by the central government for this sector. Small entrepreneurs find it difficult to take full advantage of such incentives. For instance there is 15% subsidy on equipment for technology upgradation. However the disbursements take unduly long time. State government can come to the rescue of MSME sector to extract the benefit of such schemes. State government by itself is unavailable to give such subsidies by its own exchequers coming notwithstanding.

•           Industry is facing stringent regulations in almost all the major departments. Industrial units are forced to concentrate more on secretarial work rather than manufacturing. This aspect needs the attention of the government to boost manufacturing.  With the rapid growth of the technology & greater integration of Labour, Capital & Enterprises across borders simplistic regulatory models do not work: If work the prove counterproductive.

•           Regime of entry taxes is hindering the industrial progress.

•           Labour cost is mounting. Government should exercise its power in increasing the mandatory wages in a more judicious manner.

•           Punjab should endeavor to promote Iron & Steel casting industry since it has a very large scope for exports as well. At present small Induction Furnaces required for this purposes face many problems from power utilities right from inception to the running state.

•           In the face of acute power shortage industry depends upon captive power. Unfortunately government does not allow output credit for the diesel consumes for running the captive generators sets. This should be allowed.