Punjab industrialists seek more time to set up projects

Neeraj Bagga

Tribune News Service

Amritsar, November 19

The industry of Punjab has sought more time from the government to set up their projects in more than 1,100 industrial plots allocated to them across the state, citing the double whammy of demonetisation in 2016 and implementation of ill-planned Goods and Services Tax in 2017.

Entrepreneurs are up in arms against the Punjab State Industries and Export Corporation's move to reacquire the plots in industrial areas (focal points) across the state. They termed the decision arbitrary and asked the authorities to wait for at least two years so that the allottees can implement their projects.

Focal Point Industries Association chairman Kamal Dalmia said the demonetisation in November 2016 and the GST in July 2017 created depressed market conditions that forced the entrepreneurs to postpone their expansion projects. Businesses were subsequently hit because of the depreciation of the rupee against the dollar and tight liquidity situation due to the hard line taken by the Reserve Bank of India in order to tame inflation, Punjab-based businessmen said.

Bankers are not easily financing new projects these days as they are worried over rising cases of defaults, they said adding that these factors raised the project costs multiple times than initially planned and, therefore, difficult to implement immediately.

Amritsar-based Natraj Wooltex Ltd., a yarn processing unit, was allotted a 3,200-sq yd plot in New Focal Point on Vallah road in 2012. "Next three years lapsed in paying Rs 1.50 crore, at (the rate of) Rs 4,000 per sq yd in instalments," Natraj Wooltex Director Rajan Kapoor said, explaining the reason behind the delay in project implementation.

Public sector banks are no longer interested to provide finances to set up new industries, while private banks seek 100% guarantee, Ludhiana-based Suvidhi Textiles' Shrenik Jain said.

RK Jindal, Estate Officer of PSIEC based in Chandigarh, said, notices were being served to the allottees of plots in industrial areas and they have to reply within 21 days giving reasons for the non-construction at the industrial plots.

Over 1,100 allottees have been issued such notices in 43 focal points in the state, he said. They had been given enough time to set up their projects as most of these plots were allotted to them around six years ago.