FASII president meets CPS (Industries and Commerce)

Ludhiana / Chandigarh, March 23, 2013: FASII’s National President Badish Jindal met at Chandigarh N.K. Sharma, Chief Parliamentary Secretary, Industries and Commerce, Punjab on Saturday, and discussed about the upcoming Industrial Policy of Punjab.

He also discussed and submitted certain points of FASII.  The points raised by Jindal were as under:

“De-stuffing of Industries from residential and mixed land use areas:
The Micro and Small Enterprises are anxious and are concerned about shifting of industrial units from mixed and residential areas to the industrial areas keeping in view the scarcity of land in the
designated industrial areas and non availability of bulk lands for developing new Industrial areas.
Suggestions: In the light of their limited resources, their desire to keep their travelling &  transport expenses under control and the need to have their units in proximity to the markets, it is hard &
difficult for the micro and small units to shift their units to faraway industrial areas.  Therefore, it is suggested that the Government needs to set up tiny focal points in 10 acres of land in
the Planned I-Z zones areas of planned cities.  The suggested tiny focal points should have all the norms of the focal points and the Government may charge a little higher amount of External Development Charges(EDC) for such tiny focal points. EDC should be levied only after the area had been developed and loaded with the necessary infrastructure and other requirements.
Simplification of tax structure:
We may state cut and clear that the Industry always prefers to pay VAT because it is paid by the Consumers.  Presently, however, the tax structure in Punjab is so complex which requires  simplification and streamlining. In VAT there are just two components one is Input Tax Credit and other is VAT issued. It is, indeed, quite easy to calculate and monitor the records of the tax-paying-units in tune with the banking system. It may be noted that if at all there is evasion, it could only be on the part of consumer or at the last sale level. Under such circumstances the verifications and monitoring requires at the
level of consumers.  Bogus billing could be curtailed with due precautions taken by the department.  We bring to your kind notice the hard fact that Punjab exports 85% of its production to other states which results in huge VAT refunds owing to lower CST rate.
Development of Industries & Industrial Areas under Central Govt. Schemes:
It is an irrefutable fact that in the last two years the states like Haryana have developed more than 20 new focal points by availing  80% of assistance from the  Ministry of MSME, Govt. of India under its various schemes whereas Government of Punjab has failed to do so. Similarly Punjab lags behind in seizing the benefits of Common Facility Centre(CFC) scheme of Ministry of MSME whereas the states
like Tamil Nadu have taken more than Rs.350 crores under such schemes. Punjab also failed to accrue the desired benefits from the schemes such as Assistance to States for Infrastructure Development of Exports(ASIDE) of Ministry of Commerce, Govt. of India, Industrial Infrastructure Upgradation (IIUS) Scheme of Ministry of Industrial Policy & Promotion, Govt of India and of UNIDO.
Self Authentication regime:
Some of the Central Government Ministries/Departments have introduced Self Authentication/Self Certification aspect in their Contracts with their suppliers.  It is, therefore, high time for Government of Punjab to start the self authentication regime particularly in the departments like PPCB, Municipal Corporation, Town Planning, PSPCL, etc. The applications require considering as the NOCs or consents subjected to the completion of the verification process.

Monitoring of Sick Units:
It is known that when a business of the Micro or Small Enterprise fails, not only do the assets of the business but the entrepreneur’s personal assets also get attached to pay off business dues. Apart from that, the employees also suffer because of sickness in a unit. There is, therefore, a need to formulate a system to arrest sickness in industry and whenever any unit is found sliding towards sickness, some special incentive package required to be worked-out for its survival.
Strong Banking System Required:
The functioning of State Level Banker’s Committee under Punjab National Bank in Punjab is not much effective. The Collateral Free Loans as stipulated in the Credit Guarantee Scheme of RBI remains in paper whereas the Banks continue to demand collaterals for even very small loans. A Banking Monitoring System needs to be put in place for the benefit of the Industry.

Procurement Policy of State Government:
It is unfortunate that owing to lower rate of taxes in other states, the Local Government Purchase Agencies are procuring their required materials from other states ignoring the interests of the local
Industries.
Punjab is the Power House of MSME sector where 95% of the units come under MSME sector. These units, however, face problems and difficulties in their supplies to Large Scale and Public sector
undertakings.  Therefore,  a strong support system is required to assist these units.
Role of PSIEC:
The Punjab Small Industries and Export Corporation Ltd., was set up in the year 1962 with the main objective of growth in the small scale industries sector and promoting exports.  It is, however, found that PSIEC is concentrating more on planning focal points than promoting exports.  PSIEC, therefore, should double-up their export efforts.
Settling up of Markets and Exhibition Center:
The Industry in Punjab is able to manufacture their products as per International Standards and Requirements.  A good number of units are adapting to ISO:9000 series in their work-place.  However, their products do not have the required market-outlets and Exhibition/Trade Centres in Punjab/India/Abroad. Setting up of these Centres will give a desired boost to exports in Punjab.
Power Reforms:
Power is a vital infrastructure.  Punjab, however, is passing through an era of power scarcity and consequently frequent power-cuts.  It is felt that the situation will remain as it is for a few more years.  A
proper planning is required so that power is evenly distributed to industries and agriculture particularly during paddy season and in some special months.  Quality power, uninterrupted power supply with reasonable pricing is the need of the hour.
Pollution Control Systems:
As the Union Government and the Government of Punjab are resorting to more Greener Activities, it is high time that the pollution control equipments are  made tax free.
Infrastructure:
The Housing Sector is having a boom in Punjab. To promote these colony-makers to invest in Industrial Colonies, some special incentives are required to be provided.  The Government should look
into the matter.
Unconstitutional and Illegal Dissolution of State Level Advisory Board on MSMEs by Ministry of Commerce & Industries, Govt. of Punjab:
The Government of Punjab Constituted a State Level Advisory Board for MSMEs of Punjab under your orders dated 10th May, 2012 vide notification number SSI/SLAB/426. The tenure of this Board was for
three years. The purpose of this Board was to play advisory role to the State Government for the promotion of MSME sector of Punjab. The stalwarts of industry were nominated as the members of this Board by the State Government in consultation with the Director-MSME-DI, Govt. of India.  However, unfortunately just before the first meeting of this Board scheduled for 15th March, 2012,  the Government of Punjab dissolved this board without informing any Board Member or the Ministry of MSME, Govt. of India. This is a sheer insult to the Industrial Associations of Punjab.”