FICO General Secretary meets CM Punjab

Ludhiana, November 2, 2017: S.Manjinder Singh Sachdeva General Secretary FICO met Capt.Amarinder Singh, CM, Punjab at 6th Invest North in Mumbai and discussed prevailing issues that need to be resolved to save the Industry. Points discussed were as under:
• Refund of VAT: The substantial period for the Refund of VAT amount has already been passed, but the huge amount of industry’s money is stuck with the department, but no action has been taken. As VAT refund is not a grant or subsidy money, it is industry’s own money. We request you to process the VAT refunds at the earliest to facilitate the industry in this crucial period of change over. You are requested to order the Excise & Taxation Department to release the Vat refund up to 30.06.2017 otherwise industry will become Sick

• New Tariff of Electricity: Punjab is already Land Locked State and is also Surplus in Power. Punjab is rich in hydel power, which costs only Rs.0.70/- per unit to government. Municipal tax is merely a discrimination between rural and urban section of Punjab. This will lead to the competition within the state, rather the competition should be with other states, not within the state. Moreover the imposition of 9.33% hike in electricity tariff effective from 1st April, 2017 with retro respective, is totally unfair with the industry as industry have already sold their material in market, with electricity cost calculated as per applicable then. Now asking for 7 months tariff to be paid retro respectively is totally unjustified and unfair with already struggling industry of Punjab,
• The Government of Punjab imposed 2% Municipal Tax on the Sale of Power with effect from 1st November 2017, as there is already 5% Cess on Sale of Power which is Infrastructure Cess. It has been already announced by honorable chief minister Captain Amarinder Singh that power will be provided to the industry at Rs.5/- per unit from 1st July 2017. But as per the latest notification the discounted rates will be applicable from 1st November 2017. Punjab is already Land Locked State and is also Surplus in Power.
• It is our request to withdraw this notification with immediate effect. The Rate of power should be freezed at Rs. 5/- per unit effective from 1st July 2017, to save the industry of Punjab, which is already going through a very crucial phase.

• Infrastructure of Focal Point: Infrastructure of Focal Point was also discussed as The Roads and sewerage in the Focal points are in very bad condition and we feel ashamed to bring our domestic customers as well as foreign customers to our factories through these roads. Moreover, Female staff and Workers are showing reluctance in joining Industries established in focal points, as they feel unsafe due to poor Roads and Infrastructure. These roads need to be repaired and re carpeted on war footing and sewerage lines be upgraded to avoid water logging in general and specially in rainy days. Focal points’ and Industrial Areas’ generate huge amount of revenue in form of GST, water cess, sewage cess, property tax. But the development of a few points is not up to the mark. You are requested to release Funds & order Municipal Commissioner Ludhiana to Start work of Roads on priority basis.

• Focal Point Phase VIII Enhancement: 3 Years back Punjab Small Industries Export Corporation (PSIEC) issued a notice of Rs.249/- per square yard to Focal Point Phase VIII allottees, which was settled at Rs.24/- per square yard. Now again PSIEC have issued a notice and demanded Rs.474/- per square yard from Focal point Phase VIII allottees, whereas PSIEC have already taken 100% anticipatory enhancement.