Promote MSMEs to provide job opportunities to youth: FOPSIA

Shivani Bhakoo

Tribune News Service

Ludhiana, November 29

Punjab has 7.3 per cent unemployment rate, which is the highest in the northern region and much more than the national average of 4.8 per cent. Even Haryana has reduced its unemployment rate from 9.3 per cent to 6.9 per cent in last three years. Punjab's position is stagnant as it just reduced unemployment from 7.4 per cent to 7.3 per cent in the last three years.

A few large scale industries are availing 85 per cent subsidy. The micro and small industry is being ignored by the government. — Badish Jindal, President, FOPSIA

The Punjab Government is providing Rs2,100 crore as power subsidy to industries. Besides, the government is also providing electricity duty incentive of around Rs700 crore and other benefits to industries under the Invest Punjab Scheme.

The FOPSIA president, Badish Jindal, however, said, "85 per cent subsidy is availed by few large scale industries. The micro and small industry is fully ignored in the Invest Punjab Policy whereas 90 per cent employment is generated by this sector only."

In a letter written to the Chief Minister, Punjab, Jindal said the Invest Punjab Policy proved to be a major failure in providing employment to the local youth in the state. The incentives were based on the power consumption or investment of the industry, he added.

"Instead, the government must start employment linked incentive scheme for trade and industries. The government should pay incentives such as power tariff subsidy, social security of new employees, tax, electricity duty, public procurement and capital subsidy benefits and can also provide land for setting up new units for providing fresh employment to local youth," he said.

"The focus shall be micro industries instead of large industries. The government should recognise large industries as ITIs or skill development centres. These industries will help in skill development of the local youth. In the rural areas MNREGA can be linked to industries for skill development of the rural population. Industries of the rural areas can provide jobs to the population residing in villages. The government can share the salary bill of industries from the funds available under MNREGA scheme for real progress," suggested Jindal.

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