Industry clusters look to new govt for revival

Industries in Punjab and Haryana are seeking incentives from the Centre.

Industries in Punjab and Haryana, which are reeling under the impact of slowdown, are pinning hopes on the new government at the Centre to bail them out.

The scientific instrument cluster at Ambala is expecting reelected MP Shailja Kumari to fulfil her promise of technology upgradation at the cluster. Most of the micro and small units have lost their competitive edge in the last two decades due to lack of new technology.

Speaking to Business Standard, Ashwani Kohli, senior vice-president, Punjab Chamber of Small Exporters, said they were seeking a 100 per cent exemption on service tax, TDS and other taxes to those exporting the full produce. The chamber was also seeking cash incentives to exporters who were into incremental exports apart from bringing down the interest rate on loans to 5 per cent.

Likewise, the auto ancillaries want the UPA government to deliver on its promise of investing in infrastructure and flexible labour laws.

All India Valves and Cocks Manufacturers Association founder president Vimal Jain felt that banks should lower the interest rates to about 8 per cent from the present 12 per cent to help small and medium enterprises meet their additional capital requirements.

Jagadhri Confederation of Commerce and Industry president Ashwani Goel felt that the government should retain the excise duty at the current level besides expediting the implementation of Goods and Service Tax Act.

Similarly, the Yamunanagar Plywood Association wanted a wood testing centre in the region, the hub of plywood industry with over 250 wood and plywood units. At present, there was only one wood testing centre in India at Bangalore, according to its president Devender Chawla.

“With plenty of space available around Panipat at nominal rates, Panipat is a suitable destination for IT companies,” said Pradeep Tayal, chartered accountant and consultant to industries in Panipat.

Ramesh Verma, president, Handloom Export Manufacturers Association, said the government should take urgent measures to help the handloom industry in Panipat. “The total handloom export market from Panipat is around Rs 3,000 crore,” Verma said.