₹20-lakh cr central package evokes mixed response from Punjab industry
Stating that the government has failed to provide required funds for technology upgrade, the industry also stood divided on the announcement of change in the definition of MSME industry
The state’s industry has given a mixed response to the Rs 20-lakh crore economic package, the details of which were announced by Union finance minister Nirmala Sitharaman at a press conference on Wednesday.
Welcoming the change in definition of the micro, small and medium enterprises (MSMEs), Federation of Industrial and Commercial Organisations (FICO) chairman KK Seth and president Gurmeet Singh Kular said special relief was still missing. Under the new definition, units with an investment of less than Rs 1 crore will be under the micro category; previously, this ceiling was Rs 25 lakh.
All Industries and Trade Forum (AITF) claimed that now the majority of the benefits will be availed by bigger players and micro units wouldn’t benefit.
President of the Chamber of Industrial and Commercial Undertakings (CICU) Upkar Singh Ahuja and general secretary Pankaj Sharma said, “The announcement of Rs 3 lakh crore for providing collateral-free loans is mere eyewash. A similar scheme is already there and it has not worked.”
CICU, however, welcomed the decision to invite tenders of up to Rs 200 crore domestically.
AITF national president Badish Jindal said, “Change in the definition of MSMEs will destroy the future of the tiny sector. The labour benefits announced are only linked to the Employees Provident Fund Organisation (EPFO), while only 10% of India’s workforce is under it.”
Jindal added, “The main concern of the industry was salaries to workers, interest on bank loans, interest-free loans for starting businesses, lower taxation rates, exemption from direct taxes etc. Unfortunately, the government has again failed to deliver.”
PHD Chamber of Commerce and Industry (PHDCCI) state mentor and former chairman RS Sachdeva said there was no immediate relief for the industry. “We were expecting relief with regard to labour wages, and interest part of our term loans, which the government said will be postponed for three months. There is nothing of any benefit to industry right now,” he said, expressing dissatisfaction.
In Jalandhar, Rajesh Kharbanda, MD, Nivia Sports, said, “Reduction is service tax was a long-term demand, which has been met. Some of the steps will improve liquidity and help restart operations.”
(With inputs from Jalandhar and Chandigarh)