Ludhiana News/FICO delegation meets Ravi Capoor Joint Secretary Department of Commerce & Industry

Ludhiana, November 26, 2013: Federation of Industrial & Commercial Organisations (FICO) led by its president Gurmeet Singh Kular met Ravi Capoor, Joint Secretary, Department of Commerce & Industry, Govt of India. They submitted a memorandum:
CENTRAL EXCISE DUTY:
a. Complete Abolish of 2.06% central excise duty on bicycles and on  Imported Bicycle excise duty at least 10%  should be imposed as this industry pays 12.36%  central excise on the raw material & other inputs which is not refunded any where this makes us uncompetitive in international markets.
b. The basic exemption on excise duty be increased from 1.50 crore to minimum 5 crore for smooth operation of industries.
FREIGHT EQUALIZATION:
Ludhiana being hub of the manufacturing of bicycle & parts is situated far away from the sea port due to which industry has to pay excess freight on the goods and this make them costly and uncompetitive in international markets, It is requested to give freight equalization scheme to the industry in order to reduce the cost and to increase the share in Global market. Due to geographical situation of the state, the Raw Material which is Iron Ore comes from the distant state which makes the industry uncompetitive within the country. Raw material should be available at unanimous prices to everyone within the country for fair business.
TECHNOLOGY UP-GRADATION FUND (TUF):
Like textile industry bicycle / engineering industry should also been given privilege of TUF scheme in order to boost the industry with modernization of Machinery and other Production facilities. 5% interest subsidy on purchase of new machinery should be available for bicycle & engineering industry also.
CREDIT LINKED CAPITAL SUBSIDY SCHEME (CLCSS):
In this scheme the maximum limit is ONE CRORE at present which is very small in today’s time. Limit should be increased to 10 cr. So that industry can take maximum benefit.
INCREASE OF IMPORT DUTY ON BICYCLE & PARTS TO 50%:
It is our humble request to increase Import duty on Bicycle & parts up to 50% as huge quantity of items are being imported in the country and are destroying the MSME sector because they are facing closure due to cheap and sub standard goods. This should be valid on SAFTA /ISAFTA countries also as they do not have any duty on import of goods and are posing threat of cheap imports.
SPECIAL ECONOMIC ZONE FOR MSME INDUSTRY:
SEZ should be developed for the MSME industry to have proper Concentration of the industry.
LOW RATE OF INTEREST TO MICRO & SMALL INDUSTRIES:
Micro & Small scale units are back bone of industry. Banks are charging 13% to 16% rate of interest which is totally un-viable to run the units; we request to reduce the rate of interest to 7% in order to protect them from extention.
ANTI DUMPING DUTY:
The Ban or effective steps should be taken for discouraging imports of goods which disturbs the existing Trade and industry of India. Import duty /Safe Guard Duty/ Anti Dumping Duty at least 30% on cycle & cycle Parts should be imposed to save the Indian Industry.
SHARE HOLDER INCENTIVE SCHEME
Cycle Tyre & Tubes should be taken under this scheme to save the Rubber inds
FOCUS ON AFRCIAN CONTINENT: There is huge scope in Afrcian Continent. Exports in 2004 was only 7 billion US$ but in 2013 it is 70 billion US$ so government should focus Afrcian Continent.
Ravi Capoor gave a patient hearing to the delegation and assured to do the needful in the matter.