Kular and Jain meet Dr.H.A.C. Prasad & Dr.N.K.Sinha

Ludhiana, May 24, 2014: Gurmeet Singh Kular, Chairman, PHD Chamber of Commerce & Industry Ludhiana Zone and President of Federation of Industrial & Commercial Organization (FICO) and Rajeev Jain Secretary FICO met Dr.H.A.C. Prasad Senior Economic Adviser (Additional Secretary) &   Dr.N.K.Sinha,  IES Additional Economic Adviser Ministry of Finance department of Economic Affairs Govt.of India regarding problems faced by Bicycle Industry & Exporters.
They demanded:
Abolish of 2% central Excise on complete Bicycle: They demanded from GoI that  2% central excise on complete bicycles should be abolished  because  this industry is already paying 12.36% central excise on raw  materials ie on C.R. strip, Pipes, Paints, Nickel & other inputs. They also discussed that day by day this industry is going unviable.
Increase of Import Duty: To save the mother industry Import duty on complete cycle should be 50% & on Bicycle Parts Should be 40% because still there are so many parts which are still viable from china & china is smashing our MSME industry by selling cheap cycle parts to India.
TUF Scheme for cycle industry: They also demanded Technology Upgradation Fund (TUF) from Ministry of Finance because like textile industry Bicycle industry also need fund for upgradation.  India Bicycle industry could not make the high end cycle which is the demand of Europe & USA. To feed the World Standard Cycle Indian Cycle Industry needs TUF scheme to feed the World.
Focus on CGTSME Loans: Govt. should focus CGTSME Loans to the Industry up to Rs.1crore because in CGTSME there is no need of collateral security it will save the micro industry & generate the huge revenue because micro industry is the back bone of our country.
Minimal Interest rates to MSME’s & Exporters: They also demanded from Ministry of finance that all banks are charging Rs. 13 to 15 %  Rate of interest from the industry.  To boost the industry the government should give 8% rate of interest to the MSME Industry & Exporters because they are Saving the foreign exchange to the country
Dr.H.A.C. Prasad Senior Economic Adviser (Additional Secretary) assured the delegation that he would recommend demands to the Ministry of Finance for implementation.
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