Ahead of Invest Punjab Summit, existing industrialists caution to move to other States, if their concerns are not addressed 

Members of industrial organisations have termed State government’s recently launched new industrial and business policy as discriminatory towards existing industries in the State, which would adversely hit them

Even as the Punjab government is attempting to woo new investors to the State by holding the ‘Invest Punjab Summit’ on February 23-24, several existing industrialists have announced to move out from Punjab to other States, if the government did not pay heed to their concerns.

Members of industrial organisations including the Fastener Manufacturers Association of India, Federation of Punjab Small Industries Association (FOPSIA), All Industries and Trade Forum, and the Fastener Suppliers Association of India, among others have termed the State government’s recently launched new industrial and business policy as discriminatory towards the existing industries in the State, which would adversely hit them.

“The government has recently approved a new industrial and business policy which will destroy the existing industries. In their new policy the government is assuring the investors to refund 200% of their investment, up to ₹4,000 per month to their workers, power at the rate of ₹5, exemption of registration, and other charges.. If implemented the new industry will become the reason for the closure of existing industries as with cheap power, labour benefits, and refund of investment; the product cost of new industries will be much cheaper as compared to existing industries so gradually the existing industries will shut down,” said Narinder Bhamra, president of Fastener Manufacturers Association of India on Wednesday.

“If the government doesn’t pay any heed to our (existing industries) concerns, we will be left with no choice but to look out for the option of moving out from Punjab to other States like Uttar Pradesh for better prospects,” said Mr. Bhamra.

President of All Industries and Trade Forum, Badish Jindal said that as per the new industrial policy, the existing industries will only get incremental benefits. “If the government will provide cheap power, GST benefits up to capital investment and other financial benefits to new industries, then the existing industries can never compete with the new investors. The year 2023 will see the closure of thousands of existing industries in Punjab that are already suffering due to COVID and the international recession. We request the government to withdraw this investment policy and come up with a new policy for similar benefits to existing industries,” he said.

Sunil Mehra, general secretary of the Punjab Pradesh Vyopaar Mandal, has also condemned the new investment policy. Kuldeep Singh, president of the Fastener Suppliers Association of India, alleged that the Aam Aadmi Party gave the guarantee to the industries in the election manifesto for providing power at ₹5 per unit, but presently the existing industry is paying ₹9 to ₹15 per unit of their consumption.

Punjab is holding the `Invest Punjab Summit’, hoping that it will go a long way in ensuring holistic industrial development of the state to propel it into the orbit of a high growth trajectory.