Chandigarh/Ludhiana, June 2, 2013: Punjab Deputy Chief Minister Sukhbir Singh Badal would hold a press conference on new Industrial Policy of Punjab on June 3 at 1 pm in JW Merriot, Sector 35, Chandigarh, according to an official information.
It may be mentioned here that industrialists of Punjab have been anxiously waiting for new industrial policy of Punjab since long.
Industrial sector hopes to get something special and concrete in the forthcoming industrial policy of the state. The industrialists of the state hope that the state’s new industrial policy will give a boost to the industrial sector, which has been suffering because of one or the other reasons over the period. As a result, the industries are in a move to shift their base from Punjab to other states. Many industrial leaders have already admitted in the past that the existing industrial units prefer to set up its expansion units in other states where they get more facilities, and that too prompt and uninterrupted, and even tax holidays and easy availability of raw material.
As per the available information, the draft for the state’s new industrial policy is already ready. But, the delay is only to ensure that there should not arrive any teething problems in the implementation of the new industrial policy of Punjab. The industrial leaders have been condemning the state government over the period for unclear industrial policy of the state following which they had even resorted to agitations in the past.
Political observers say that the ruling SAD-BJP government is considering each and every aspect of the new industrial policy before its implementation in view of the coming parliamentary elections. They strongly believe that the state government will make every possible effort to “please” the industrial sector of the state with the new industrial policy to be announced in the future. This is why the announcement of the policy has been delayed after every “deadline” announced by the Punjab Industries and Commerce Minister Anil Joshi. Initially, he had announced that the new industrial policy would be ready by January this year. However, he gave deadline for the same till March 31 followed by April-end. And now the month of May has also gone.
Interestingly, many states are trying to “attract” the industrialists of Punjab to set up their units there. There have been many instances when senior bureaucrats and even ministers have visited Ludhiana and held discussions in this regard. Recently, on May 23 this year Maheshwar Rao, Commissioner of Industries, Government of Karnataka visited three companies in Ludhiana. Rao met Vijay Munjal in Hero ecotech , Amrik Singh in Nexo Industries and Ravi Mahajan in Mahajan Group of Companies.
He assured the full cooperation in setting up the units in Karnataka. He also assured that the industry will get 24 hour power supply, the price of power will be from Rs. 4 to 5 per unit and during off peak hours there will be a rebate of 120 paisa per unit, cheap labour is no issue in Karnataka, the VAT will be paid back in form of 0% interest rate for five years, the land prices are from Rs. 5 lac per acre to 50 lac per acres.
Even Rao assured to the Ludhiana industry that if some cluster comes government will develop the land, the procurement benefits will be given to the companies, the atmosphere is very safe for industry there.
The other states seem to me more liberal towards the Ludhiana industry, which is evident from the fact that when Vijay Munjal raised the issue of cycle tenders in Karnataka, and request to amend the clauses in the tenders, so that all the manufacturers can participate, Rao assured the full support on this issue.
Even when the NEXO industries raised the issue of availability of land near steel plants, the Rao assured that the land around steel plants could be made available at near about Rs.10 lacs per acre.
The commissioner also visited the Mahajan Industries and discussed about the investment proposals and assured them the full co-operation.
This single example should be an “alarming” one for the Punjab government. If the industries started moving towards other states in a large numbers then it will be very crucial for economy of Punjab. As such there is a dire need that the state government should try announce the new industrial policy as per the aspirations of the industries of Punjab. If the state government feels that all aspirations of the Punjab Industries cannot be fulfilled in the new industrial policy then it must keep into consideration the facilities/offers being offered to the industries of Punjab by other states.