Ludhiana News/Recommendation to purchase 100% "Made in India bicycle" in government tenders

Ludhiana, December 18, 2013: A meeting with Saurabh Chandra, Secretary, Department of Industrial Policy & Promotion, Govt. of India and Mrutunjay Behera Deputy Secretary was held in New Delhi in Udyog Bhawan with the industrialist of cycle industry.
Jagatvir Singh, Vice President and Rajeev Jain, General Secretary (United Cycle and Parts Manufacturing Association, Ludhiana) along with Gurmeet Singh Kular, President of FICO & General Secretary Brado (Bicycle Research & Development Organisation) were present for discussion.
The issues discussed were as under:
Import duty on Bicycle & Parts: As Ludhiana is the base of bicycle industry which requires your main attention. This Industry gives employment to half a million people and also earn foreign exchange for the country being the second largest manufacturer of Bicycle & parts in the world. Imports from China & other countries are hitting hard to this industry, many small manufacturing units have close down due to import of finish goods from China. Though there is 30% duty on complete bicycle & 20 % on bicycle parts still huge quantity of goods come in India direct from China or via SAARC Countries at low /under invoicing. The delegation requested to increase the import duty on both bicycle & parts to 50%.  Further original bill of entry should be called while calculating the customs duty as like done online in African countries (COMESA), so that government does not lose revenue due to under invoicing. Floor price on bicycle parts mainly imported should be fixed at least 100/kgs.     
Subsidy on Used Imported Machines:  The delegates said as we are representing the small &  micro sector which cannot afford the costly imported machine but have will to  up- grade the technology. It is our humble request to allow subsidy on used imported machines imported by small & micro units. This will help us to increase production, in automation and quality will increase manyfold which will also reduce price of the products.
Abolish of 2% Central excise on Complete bicycle:  Bicycle being the “poor man’s luxury vehicle” plays very important role in price .As complete bicycle attracts the central excise duty of 2% the price is increased by Rs.50 on basic cycle which directly hits the poor man’s pocket .It is our humble                     submission that central excise on complete bicycle should be abolished to save the masses.  Moreover no refund of central excise duty is given where as central excise of  12.36% is been given on the raw material used the bicycle industry.  “Our industry is becoming uncompetitive in international market and are losing valuable foreign exchange for the country”, said the delegates.
Use of indigenous Indian parts in Government tenders: As government of different states are buying half a million bicycles to distribute free to public and this industry in mainly situated in Ludhiana which is mainly represented by MSME sector is suffering due to cheap imports of parts from China & other countries, This has resulted in closure of many small scale units like Bicycle spokes ,Steel balls, Basket, hub cone, pump, pedal axle  etc. It is our humble request in order to save MSME sector it should be mandatory for the tenders to use “Made in India” parts. This will save the industry & will give employment to people & save the foreign exchange from draining out of country.
TUF scheme for Bicycle industry.: As trends of the global market is changing very fast and the industry has to keep themselves up-graded we request you to give Technology Up gradation Fund(TUF) scheme for bicycle industry as like textile industry  ,so that we can upgrade our technology with changing time  and increase our market share in Global market.  
Inclusion of power press in stamping: It is very grateful that the government has given CLCSS scheme to the industry but subsidy is being denied due to   miss-interpretation “Stamping press is mentioned in section XXI page no. 51.” Where as Stamping is the technique /method and power presses is mode of it as the functionality is the same “ Stamping is a metal forming method in which a sheet is shaped by bending, folding, pressing, stretching, and /or twisting ,usually with pressing machinery.”   Pressing machinery is known as power press. So we request you to look into the matter and “Power Press” should be added in the clause.
Enhancement in limit of CLCSS: Credit link capital Subsidy Scheme (CLCSS) limit should be increased  to 5 crores. Further in this scheme there is time bound submission of documents, but many of the industrialist could not submit on time, it is our humble request to  increase the time limit and  to give one time chance to file the time bar  cases in the interest of industry.
Low rate of interest to MSME Industry:  As Bicycle industry is mainly for lower segment of society and is also run by small scale units it is our humble request that low rate of interest  should be charged from small & micro sector so that they can flourish.      
In this regards Deputy Secretary said that floor price is being discussed and government is on its toes. He said to provide the data for the imposition  of Safe Guard and Fixation of floor price office order has      already been issued in this regards, Kular revealed. It was also said that government was seriously considering about abolishing of 2%excise duty on complete cycle. The Centre has sent letters to the higher authority to protect the bicycle industry and has recommended to purchase 100% "Made in India bicycle" in government tenders.
Further, Kular said Saurabh Chandra is ready to give interest subvention to small scale industry provided proper data is given to ministry with complete scenario of bicycle industry. He (Saurabh Chandra)said funds for development of new technology are available with ministry which the bicycle industry can take advantage of by making Research & development centre to improve & upgrade the technology of bicycle. He also suggested that funds for development of infra structure can be taken under IIUS Scheme. // ludhiana news online, ludhiana news in English, ludhiana news, ludhiana current news, ludhiana news live, Ludhiana breaking news, Ludhiana headlines, Ludhiana latest news, punjab news, india news, punjab news live, punjab news online, punjab news, punjab news headlines, punjab breaking news, india news, punjab news,