Ludhiana, Dec 16 (KNN) After the Supreme Court’s Committee on Road Safety made it mandatory to install 10 reflectors qualifying ISO 6742-2 standards per bicycle, the MSME manufacturers from Ludhiana are eagerly waiting for a German company which is planning to set up its plant for reflectors in Ludhiana by February 2017.

The Supreme Court’s Committee on Road Safety made it mandatory to install 10 reflectors qualifying ISO 6742-2 standards per bicycle.

The standardised ISO 6742-2 reflectors which are not produced by any Indian company have to be imported from global manufacturers like Cateye and Satellite in Japan and China respectively. These companies covering 90% market share of reflector production require time to process the orders place by Indian bicycle MSMEs.

Inspite of the implacable efforts by Ludhiana based cycle manufacturers to convince DIPP and Road Safety Council to extend the deadline beyond July, 1st, 2016. They got clear cut instructions to fast-track their orders to foreign companies in order to meet the norms.

According to an MSME entrepreneur in the region, the companies who make 50 to 100 bicycles per day are taking the products from importers but axe is falling at the small industries.

Talking to KNN, Rajeev Jain, Secretary General, United Cycle and Parts Manufacturers Association (UCPMA), said, “After the plea of MSMEs on deferring the date by six months on reflectors was rejected by the government, the units were left with no option but to either halt manufacturing for some time or to sell their bicycles at a much higher price.”

The reflectors which have now been mandatory are presently not manufactured in India. They have to be imported from countries like Japan, China, Germany or Korea.

“As such there is no reflector has been made except one that is for pedal. So we have to import that thing. One Indian company has tied up with the some German Company and that supposed to be planted by February 2017” added Jain.

Jain said, “Those who cannot afford the imports they started manufacturing the models which don’t require such reflectors.”

He said that the industry even urged the government to make its import duty free but the government refused to do that.

“This way the local industry is getting destroyed and the imports from China are getting a boost,” Jain added.

Jain claimed that only the big bicycle industries that had capital and an upper hand strong enough to import had been successful in abiding by the proposed deadline, none of the small bicycle manufacturers were able to meet the deadline despite efforts. The small industries had to make their groups to be able to import reflectors.

“The big companies like HERO, ATLAS etc. in the markets had already imported the reflectors and the small companies had made their groups to import the reflectors. Because every company had different number of requirement so they made their groups to import it together in order to continue their business,” said Jain.

 “Government is against the industry, as they found it easy to import the rupees 150 crores of reflectors. The dream of ‘Make in India’ will remain a dream,” said Secretary General, UCPMA.

He also quipped on the Demonetization and said that their sales had huge effect due to it and it will not be easy to cover the loss.

“This financial year is finished for us, as it will take nearly six months to cover the loss,” added Rajeev Jain. (KNN/ RAS)