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Shivani Bhakoo
Tribune News Service
Ludhiana, February 18
The Budget announce by Punjab Finance Minister (FM) Manpreet Singh Badal today evoked mixed response. Few appreciated many steps taken by the FM while others felt that there was no respite to the industry, especially the Micro, Small and Medium Enterprises (MSME) scheme.
Industrialists expected that the FM would announce certain packages for the industry, which was in recession, but there was nothing much, they feel.
Finance Minister has misled all: FOSPSIA
The Federation of Punjab Small Industries Association (FOPSIA) president, Badish Jindal, said, “Finance Minister has again misled all by saying that e-way bill limit has been increased to Rs 1 lakh, but the fact is that it is still Rs 50,000. Industries like bicycle, auto-parts, hosiery garments are in recession and need special attention in the form of packages, but FM did not announce anything in the Budget today.”
“The government is already paying Rs 1,500 crore for power subsidy to the industry, which is still getting electricity between Rs 9 to12 per unit. In Punjab for getting power at Rs 5 per unit, the total subsidy amount needs to be increased to Rs 3,500 crore. Focal points are in worst conditions. There is no announcement for special grant for restructuring focal points or other industrial areas,” he added.
“More than 1,000 crore VAT refund is pending. Already applications of Rs 600-crore refund have been cleared by the government, but no provision has been kept in Budget for that,” rued Jindal.
Rs1 relief for diesel not sufficient
The industry mainly consumes diesel for manufacturing and transportation. A relief of Re 1 is insufficient for the industry. Federation of Industrial and Commercial Organisation (FICO) has welcomed the government’s decision of reduction in petrol price by Rs 5 per litre and diesel by Re 1 per litre.
At the same time, FICO members feel that the consumption of diesel is much more than that of petrol in industries so, its price should also be reduced by Rs 5 per litre.
Not friendly as no package for bicycle industry
While sharing his views on Budget FICO president Gurmeet Singh Kular said, “This is non-industrial friendly Budget as there is no package for the bicycle industry, which is the mother industry of Punjab. India is the second largest manufacturer of bicycles in the world.”
“There is no special announcement for the MSME sector. Power @ Rs 5 per unit has been announced, but not implemented. No technology up-gradation fund scheme has been introduced. There is no enhancement policy for industrial focal points,” he added.
Will help in developing Smart Cities
At the same time, the Indian Institute of Architects (IIA), Ludhiana Centre and Punjab chapter has welcomed the decision of Punjab Government to allocate under Smart Cities Rs 296 crore for development of Ludhiana, Amritsar and Jalandhar.
The chairman, IIA Punjab Chapter, Sanjay Goel, said, “We hope that in the coming days, further allocation of funds from the Central Government will also be there. If future villages are smart, then migration of people from villages to towns and cities will be less. Hence, it will be easier to make cities smart as major problem of ever increasing population and vehicles will decline.”
Some steps taken need applause
Meanwhile, while welcoming the Budget the Chamber of Industrial and Commercial Undertaking (CICU) has welcomed the Budget said, “Few steps by the FM need applause.”
Upkar Singh Ahuja, president, and Pankaj Sharma, general secretary, of the CICU, respectively, said, “Reducing prices of petrol and diesel by Rs 5 and Re 1, respectively, is a big relief to the common public.”
They also welcomed the allocation of Rs 296 crore for the development of Ludhiana, Amritsar and Jalandhar as Smart Cities and setting up of 15 new ITIs in Punjab, which they said would decrease unemployment in the state and boost the manpower in industry.
Further, the new scheme “Make in Punjab” to promote goods manufactured and produced in the state is the need of the hour. CICU members appreciated the much needed Rs 4.38 crore allocated for the cleaning of Budha Nalla.
Pro-poor and has something for all
The Confederation of Indian Industry (CII) hailed the 2019-20 state Budget presented by the FM as pro-poor and aimed at provisioning something for each strata and also bringing in some degree of fiscal prudence and resource mobilisation.
The state government’s decision to rationalise VAT rates on petroleum products in line with the neighbouring states wherein petrol would now be cheaper by Rs 5 per litre and diesel by Re 1 was also appreciated by the CII fraternity.
Complementing Punjab leadership for making concerted efforts to manage the state of finances, Sarvjit Samra, chairman, CII Punjab State Council, and managing director, Capital Small Finance Bank, pointed, “It’s heartening to observe that after several years, the state is in primary surplus and the unfunded gap in the Budget will be reduced from Rs 4,175 crore in the current fiscal to Rs 2,323 crore in 2019-20. These are positive indicators showing that Punjab’s economy has started to move in the upward trajectory.”
Samra also appreciated Punjab Government’s intent towards improving the skill set of the local youth and helping them find gainful employment through its new scheme “Mera Kamm, Mera Maan” for which it had allocated Rs 90 crore, besides deciding to set up 15 new ITIs in the state, which would help industry overcome shortage of trained manpower.
Industries like bicycle, auto-parts and hosiery garments are in recession and need special attention in the form of packages, but the FM did not announce anything in the Budget today. —Badish Jindal, President, FOPSIA
There is no special announcement for the MSME sector. Power @ Rs 5 per unit has been announced, but not implemented. No technology upgradation fund scheme has been introduced. —Gurmeet Singh Kular, President, FICO
We hope that more funds will be allocated by the Central Government for Smart Cities. If future villages are smart, then migration of people from villages to cities will be less. —Sanjay Goel, Chairman, IIA Punjab Chapter
Reducing prices of petrol and diesel by Rs 5 and Rs 1, respectively, is a big relief for the common public. Setting up of 15 new ITIs in Punjab will decrease unemployment in the state. —Upkar Singh Ahuja, President, CICU
It’s heartening to observe that after several years, the state is in primary surplus and the unfunded gap in the Budget will be reduced from Rs 4,175 crore to Rs 2,323 crore in 2019-20. —Sarvjit Samra, Chairman, CII Punjab State Council
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