INDUSTRY: Badal seeks PM’s intervention to grant special package for local bicycle industry in next Union Budget

Chandigarh, January 11, 2013: Seeking the personal intervention of Prime Minister Dr Manmohan Singh, Punjab Chief Minister Parkash Singh Badal has urged him to give a special package for Bicycle Industry of the state in the next Union Budget.

Pertinently a high level delegation of the All India Cycle Manufacturers Association (AICMA) led by its Chairman, Pankaj Munjal had called on the Chief Minister here requesting him to raise the issues pertaining to cycle industry before the Union Government. 

In a letter to the Prime Minister, the Chief Minister has urged that in the current scenario when petrol/diesel prices were on rise and becoming unaffordable, the self employed people’s transport “Bicycles” must be promoted in order to sustain and generate more employment besides keeping a check on environmental pollution.

Badal further said that despite of the fact the state employs over 1,50,000 people in the bicycle industry, it has been losing sheen over the years due to no initiatives, schemes and promotion policies by the Government of India (GoI). He said that over the last 5 years, the bicycle industry growth has been lesser than GDP growth and infact the industry has declined by 8% in the current year.

The Chief Minister apprised Dr. Manmohan Singh that due to imposition of 1% excise duty on bicycles in the Union Budget in Financial Year 2012 which was increased to 2% in Financial Year 2013, this industry has received a major jolt which was itself evident in its de-growth.

Badal said that the Bicycle manufacturers were apprehending risks to sustainability and further creation of employment in the Financial Year 2013. Demanding freight equalization support for this industry, the Chief Minister said that as the China Government supports its industries for exports by way of subsidising them with freight equalization schemes, the GoI should also take this step for saving the indigenous bicycle industry.

He further informed the Prime Minister that it was very important since traditionally, most of the suppliers and producers of bicycle have been clustered in Punjab, which was not so friendly for exports from the perspective of high cost of freight up to the port. The Chief Minister also said that the bicycle industry has all the technical capabilities to meet export requirements adding that the bicycle manufacturers have invested into facilities, technological upgradation and human resources in order to meet the high quality requirements of international customers.

Badal also asked the Prime Minister to raise the export benefit from current 12.3% of FOB price to 15% of FOB price besides ensuring reimbursement of freight from the factory of production up to port.

Seeking exemption from excise duty on Bicycles besides subsidy to people living Below Poverty Line (BPL) for bicycle purchase, Badal said that Bicycle as a means to make living for a large section of society (Below Poverty Line) was supporting Government in its initiatives to eradicate poverty and generate employment for the people adding that Government’s social causes of employment generation, education promotion, environment friendliness were well served with Bicycle as a product.