Industry wants govt to be facilitator

Vijay C Roy

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Tribune News Service

Chandigarh, March 23

As announced in the Budget 2017-18, the state government unveiled the new industrial policy in November 2017, claiming that thrust had been given to sectors such as high-tech manufacturing, technical textiles, food processing, etc, to boost manufacturing in the state. However, industrialists are of the view that the government should act as a facilitator by offering hand-holding to the industry.

Attracting big-ticket investment is a major challenge for the state government. Chief Minister Capt Amarinder Singh has signed MoUs with various industrial houses in the recent past, but it’s anybody’s guess how much actual investment will come to the state.

According to the Punjab Economic Survey, the growth rate of the industrial sector was estimated at 4.57 per cent in 2016-17. However, the estimated national average was 6 per cent.

In the previous Budget, Finance Minister Manpreet Singh Badal had announced setting up of MSME (micro, small and medium enterprises) kendras, new industrial parks, logistic hub, etc, but many of the announcements are yet to see the light of day. Last year, the industry and mining sector got a combined allocation of Rs 209 crore only.

Industrialists mentioned that the Value Added Tax (VAT) refunds have not been made by the government for the past many years. And now the entrepreneurs are awaiting GST refunds.

The Central government has a policy to develop clusters in which it contributes 70 per cent, while the state’s share is 20 per cent and rest of the cost is being shared by members of the Special Purpose Vehicle (SPV). As the state is reluctant to contribute its share, so clusters are not coming up, said Badish Jindal, an entrepreneur from Ludhiana.