₹20-lakh cr central package evokes mixed response from industry in Punjab

LUDHIANA: The state’s industry has given a mixed response to the ₹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 ₹1 crore will be under the micro category; previously, this ceiling was ₹25 lakh.

All Industries and Trade Forum (AITF) claimed that now the majority of the benefits would be availed by bigger players and micro units wouldn’t benefit.

President of the Chamber of

UNITS WITH INVESTMENT OF LESS THAN ₹1 CRORE WILL BE UNDER MICRO CATEGORY; PREVIOUSLY, THE CEILING FOR THEM WAS ₹25 LAKH

Industrial and Commercial Undertakings (CICU) Upkar Singh Ahuja and general secreary Pankaj Sharma said, “The announcement of ₹3 lakh crore for providing collateralfree loans is mere eyewash. A similar scheme is already there and it has not worked.” The CICU, however, welcomed the decision to invite tenders of up to ₹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)