Punjab's small units bank on government orders

Small and medium enterprises in Punjab are aiming to procure government orders, apart from their regular custom, to boost their businesses.

The United Cycle Parts Manufacturers Association (UCPMA), a bicycle industry association, is awaiting orders for bicycles from state governments in the southern and eastern parts of India.

Gurmeet Singh, vice-president of the UCPMA, said that the Tamil Nadu government had recently booked orders for bicycles with four companies, of which two are from Ludhiana.

Normally, a few states in southern and eastern India place orders for bicycles, which sets the ball rolling for the bicycle industry in Ludhiana. This year the fury of the monsoon has affected order placement, but association members nonetheless expect the momentum to recover in the coming months.

A L Aggarwal, president of the Chandigarh Industrial Fastener Association (CIFA), said fastener manufacturers in the region had applied for tenders floated by the railways, telecommunication, electricity boards and other state agencies.

The tenders are to be opened by November, and from December, the fastener industry expects a stream of orders which should keep it occupied until March.

Chandigarh has 300-325 registered and unregistered fastener enterprises, of which 90 per cent are in the micro category and 10 per cent in the small category. It generates business of about Rs 170-180 crore, Aggarwal said.