City industry’s hopes dashed to the ground

Tribune News Service

Ludhiana, June 20

Ludhiana is the hub of industry and was anxiously waiting for the maiden Budget of the Congress Government. But all hopes have been dashed to the ground as the government has failed to address its issues.

“The industry has termed the first Budget of the Congress for 2017-18 as merely a fake financial document because for the first time detailed annexure was not provided by the Finance Minister which clearly shows that there is something fishy in the Budget,” said Badish Jindal, president of the Federation of Punjab Small Industries Associations.

“The formation of the Punjab Corporate Social Responsibility Authority is not a welcome step as it’s the right of the corporate to donate 2 per cent CSR funds with their local priorities. The government cannot force the corporate to pay 2 per cent CSR for their income of past three years. This is surely going to give a bad name to the state for upcoming investment projects,” said Badish Jindal.

The fiscal deficit of Rs 11,362 crore for 2016-17 and Rs 14,784 crore for 2017-18 will put the state in deep financial trouble and the government may put some additional burden on the industry. The loan burden of Punjab increased from Rs 1,82,183 crore to Rs 1,95,002 crore with an additional interest burden of Rs 14,910 crore per year. Under these circumstances, it is too hard for Punjab to make any development.

The Finance Minister accepted that VAT receipts have gone down by 2 per cent in financial year 2015-16, which is giving a true picture of bankruptcy in the industry. But even after declaring the facts, no package was given to the industry by the Finance Minister. No budgetary provisions have been kept for industry except Rs 2 crore for women entrepreneurs and Rs 10 crore for investment bureau, said Vinay Kansal, a hosiery manufacturer.

No provision has kept in the Budget for providing power to the industry at Rs 5 per unit.

“No funds have been allotted to the industry for upgrade and uplift as we all know that the cycle industry is the mother industry of Punjab. There is no technology upgradation fund for the industry in this budget while the hi-tech cycle valley project has already been passed in Ludhiana by the previous government,” said Gurmeet Singh Kular, president of the Federation of Industrial and Commercial Organisation.