Industrialists doubtful of getting big grants, subsidies

Tribune News Service
Ludhiana, January 12

The government came up with new Business Policy 2017, which was completed in November 2018. But it still needs to clarify about many issues surfaced in the policy.

The previous government had come up with Invest Punjab Policy 2012. Fewer than a dozen companies got complete subsidies against their investments under the policy. More than 600 files under the old investment policy have migrated to the new investment policy so far.

“The Government of Punjab is not in a very healthy financial position. The industry has been crying for VAT refunds for the past two years. VAT refunds worth more than Rs 600 crore are still pending. Though many files have been cleared, the industrialists have been waiting for their VAT refunds for the past two years,” said Badish Jindal, president of Federation of Punjab Small Industries Association (FOPSIA). 

The position of GST refunds is also no different from VAT refunds. Here also the industrialists are forced to pay commissions for getting their refund amount released, he added. 

Beside the Business Policy 2017, the government had announced power at the rate of Rs 5 for the industry. But the fact remains that even after subsidy, the industry is forced to pay higher power charges than the rates charged during the previous regime. 

The ill health of the state government can be judged from the pending subsidy bill of Powercom. “The government was supposed to pay Rs 9,145 crore as subsidy to Powercom, but it could pay only Rs 5,169 crore,” he said. Under the new policy, EDC and other benefits can only be claimed after a unit starts production. The industry is still suffering due to the delay in release of subsidies. Even after the orders from the Supreme Court, the industry is still waiting for subsidy worth more than Rs 100 crore, said Jindal.