Ludhiana Cycle Industry Cluster Demands CLCS Revival, Freight Subsidy

New Delhi, Jul 22 (KNN) In a significant move to bolster the Micro, Small, and Medium Enterprises (MSME) sector, a delegation of industrialists recently met with Sanjeev Chawla, the Assistant Development Commissioner-cum-Director of MSME-Development and Facilitation Office (MSME-DFO).

The meeting, spearheaded by the Federation of Industrial and Commercial Organisation (FICO), focused on a range of critical demands aimed at enhancing the growth and competitiveness of MSMEs, particularly in the bicycle industry.

The delegation presented a comprehensive list of requests to Chawla. They sought expansion of the Credit-Linked Capital Subsidy Scheme (CLCSS) for the bicycle industry and implementation of a Technology Upgradation Fund Scheme.

The industrialists also called for the introduction of a subsidy under the Freight Equalisation Policy, establishment of a dedicated bank for MSMEs, and an increase in the participation limit under the Procurement and Marketing Support (PMS) scheme.

Gurmeet Singh Kular, President of FICO, emphasised the need for a permanent CLCSS with an increased upper limit of Rs 5 crore, reflecting the revised definition of MSMEs. He also called for an increase in the subsidy rate from 15 per cent to 25 per cent to better support the sector.

Highlighting the importance of the bicycle industry to India's manufacturing landscape, Kular noted that while India is the world's second-largest bicycle manufacturer after China, there remains a significant production gap. China produces 320 million bicycles annually, compared to India's 32 million.

To bridge this gap, FICO proposed the introduction of a Technology Upgradation Fund Scheme for the bicycle industry, offering a 10 per cent subsidy on capital investments up to Rs 40 crore. This measure is seen as crucial for enhancing the competitiveness of Indian bicycle manufacturers on the global stage.

Rajeev Jain, General Secretary of FICO, advocated for a freight subsidy for north-Indian MSME exporters to level the playing field with competitors located closer to seaports and steel plants. He also called for the establishment of a specialised banking system for MSMEs, offering loans at a maximum annual interest rate of 8 per cent with simplified procedures. These measures aim to address the unique challenges faced by MSMEs in northern India and improve their access to affordable financing.

The delegation also requested an increase in the participation limit under the PMS scheme from 60 to 200, to enhance manufacturers' ability to showcase their products at national events. This expansion would provide greater opportunities for MSMEs to market their products and establish new business connections across the country.

The industrialists submitted a written memorandum to Chawla, urging him to present these demands to the central government. These proposed measures are seen as crucial for driving growth in the MSME sector, which plays a vital role in India's economic landscape.

(KNN Bureau)