Mandi Gobindgarh furnace industry rues midnight raids

The furnace industry in Mandi Gobindgarh, Punjab’s steel hub, has warned of an indefinite shutdown if the Punjab the Goods and Services Tax (GST) Department continues conducting late-night inspections at industrial units. The industry alleged that raids were crippling business and disrupting the supply chain.

The warning was issued after an emergency meeting of the Furnace Association’s executive committee, where members strongly criticised what they described as the department’s high-handed functioning. The association alleged that GST teams were entering furnace units between 1 am and 3 am, forcing security guards to open factory gates in the absence of owners and senior management. They said such inspections create panic among traders, pose security risks and could lead to untoward incidents as only guards and workers were present during those hours.

The association further claimed that the midnight checks discouraged suppliers from Uttar Pradesh, Bihar, Odisha and Gujarat from sending iron scrap to Punjab, with much of the material now being diverted to neighbouring Himachal Pradesh. The resulting shortage of raw material, the association said, had already forced more than half of Mandi Gobindgarh's furnace units to suspend operations, while the remaining units may also shutdown within days if the situation persists.

Warning of serious economic consequences, the association said a complete shutdown would lead to massive losses in GST collections and electricity revenue besides jeopardising the livelihoods of thousands of workers and lakhs of people dependent on the steel industry.

Seeking immediate intervention, the association urged the Punjab Government to set up permanent check posts at state borders and key entry points for inspecting incoming goods instead of conducting midnight inspections inside factories. While reiterating its support for action against illegal trade, it maintained that genuine industries should not be subjected to unnecessary harassment. The association also announced that it would soon meet the local MLA and the Punjab Finance Minister to seek a permanent resolution.