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Punjab Budget provides nothing to industries, the e-way bill limit was also extended just for a month: FOPSIA

Updated: Feb 19, 2019 08:12:20am
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Punjab Budget provides nothing to industries, the e-way bill limit was also extended just for a month: FOPSIA

Chandigarh, Feb 19 (KNN) The State Budget presented by Punjab Finance Minister, Manpreet Singh Badal has announced nothing for the industries, said Federation of Punjab Small Industries Association (FOPSIA).

While speaking with KNN India, President of FOPSIA, Badish Jindal said “Budget has provided nothing to industries as there was no mention of industry friendly policies and initiatives.”

He said, “In his budget speech Finance Minister announced that the GST revenue from auto parts, cycle and cycle parts, hosiery/readymade garments, soft drinks and cement has decreased, which clearly shows that these sectors are in trouble and need some package from state but besides giving statements, nothing was announced for them.”

"Finance Minister again lied in his speech that the e-way limit has been increased from Rs 50,000 to Rs 1 lakh, whereas the same was decreased for almost all items within 1-month of its announcement to the previous limit of Rs 50,000, he added.

In the State Budget for 2019-20, Finance Minister announced that the new policy, titled “Make in Punjab” is being drafted to promote goods manufactured in the state. As per the policy, in a public procurement order, purchase preference shall be given to the local suppliers to up to 50 per cent of the total quantity tendered.

Responding on this, FOPSIA President said “Already the public sector companies procuring more than 50% from local companies so this is also not a very big relief for industries, because for a serious attempt to revive state industries it should be around 80% preference.”

Committed to provide subsidized power to the industry, Finance Minister allocated Rs 1,513 crore to provide subsidized power to industry in the budget.

With regard to this, Jindal pointed “The government is paying Rs 1,513 crore for power subsidy to the industry, but the industry is getting power between Rs 9 and Rs 12 per unit.”

Government knows that for Rs 5 power subsidy, the total subsidy requirement is Rs 3500 crore, said Jindal.

Besides, he stated that the focal points are in worst conditions and there is no announcement for special grant for restructuring focal points or other industrial areas.

“More than 1000 crore VAT refund is pending and already applications of 600 crores cleared by the government but no provision kept in budget for that,” Jindal pointed.

He said that the industry mainly consumes diesel for industry and transportation and a relief of Rs 1 is very much insufficient for industry. 

No provisions kept for giving subsidies to units upcoming under investment plans. More than 600 files of subsidies are pending for the 2012 investment policy, he added.

Also, he noted that no freight subsidy announced by the government for giving relief to exporters. (KNN/YV)

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