Punjab Government pressuring industry to form SPV, says CICU

Tribune News Service

Ludhiana, September 6

The Punjab Government is forcing industry to form special purpose vehicle (SPV), which is not right. The government is going back on its assurance on providing basic infrastructure to the industry. This was stated by Upkar Singh Ahuja, president, and Pankaj Sharma, general secretary, respectively, of the Chamber of Industrial and Commercial Undertakings (CICU).

“Several meetings with the Chairman, PSIEC, Gurpreet Gogi, and Industry Minister Sunder Sham Arora have not provided any significant result till date,” rued members of the CICU, who held several meetings with industrialists last evening. “Government is not ready to provide any basic facilities, but want industry to face global competition,” they added.

The Punjab CM announced grant of Rs 32 crore a year ago, but not even single penny was given, they added.

“The condition of roads and sewer is pitiable. It’s so disappointing for the industry that after holding so many meetings with the local administration and bureaucrats not even a small step has been taken so far,” they added.

“A senior bureaucrat has sent a strong message through local industry office to put pressure on industrialists to make SPV in order to get grant from the Punjab Government, which is unfortunate,” they said.

“At the time of allotment of plots the PSIEC had assured to provide good roads and sewer lines. Now, they are backing out of their own promise. Nowhere in the agreement or in allotment letter it is been mentioned that the SPV has to be made,” said Pankaj Sharma.

“Industry is going through a bad phase due to massive economic slowdown. The state government instead of helping the industry to survive is putting more burden on industrialists,” he added.

Rajnish Ahuja, who formed SPV in Phase IV, has time and again expressed his anguish to the government. It took Ahuja and SC Ralhan seven years to make and run the SPV, which even now was not able to perform at 10 per cent. “None of the roads or sewer is working in Phase IV,” rued Ahuja.

OP Bassi, president of the association of Phase VIII, Focal Point, refused to be part of the process. “Bureaucratic hassle in making the SPV and operating it has proved it to be a futile exercise,” he added.