New Delhi, Aug 24 (KNN) Eyeing at the industrial development in the state of Punjab with special focus on the Micro, Small and Medium Enterprises (MSMEs), the draft imdustrial policy  announced special incentives and packages for the sector. However, the industry is sceptical over the big promises being made to them by the government.

Talking to KNN, Badish Jindal, President of Federation of Punjab Small Industries Association (FOPSIA) explained that while the draft policy that is doing rounds in the sector seems good on the paper, there are real doubts over the substance to the promises that are being made.

Jindal raised concerns in light with the recent exemption of GST announced to the hilly states including Himachal and Northeast, because of which the MSMEs in Punjab fear a shift in investment away from their state to these tax haven states.

“The government should reconsider the MSME policy because despite the incentives and package to the sector, it still would be much costlier for production in Punjab than in the tax exempted states” he said.

Jindal further said that the MSME policy for the state seems over ambitious and the financial crunch that the state is facing might not allow for such big promises.

Earlier the draft policy highlighted that to promote the MSMEs in the state, the state government will be setting up 'MSME Punjab' - an organization focused to addressing the concerns of the MSMEs with regard to finance/credit, technology, market, skills and innovation.

Also the government announced a number of incentives and reimbursements on taxes under the new policy.  (KNN/ DA)