Industry demands technology upgradation fund for bicycle units

  • HT Correspondent, Hindustan Times, Ludhiana
  • Updated: Sep 07, 2014 18:41 IST

The members of PHD Chamber of Commerce and Industry (PHDCCI) during a meeting with secretary, micro small and medium enterprises (MSME), Madav Lal, on Friday discussed several issues key issues of cycle industry, including technology upgradation fund (TUF), reduction on import duty and credit link capital subsidy.

Gurmeet Singh Kular, chairman, Ludhiana zone of the chamber, along with other discussed the issues of MSME industry with the officials.

Kular said, “Several issues that are posing a risk to the cycle industry were discussed during the meet. With the changing times, the industry has to keep itself upgraded with the latest trends. We requested the secretary to give TUF scheme for the bicycle industry like the textile industry.”

“The formation of an MSME Bank would also serve the industry and the rate of interest on loans should not be more than 8%,” added Kular.

The issue of import duty on bicycles and threat posed by the Chinese goods flowing into the Indian markets were also discussed.
The delegation also requested the government to abolish of 25 percent central excise on bicycles.

Rajiv Jain, secretary, Federation of Industrial and Commercial Organisation (FICO), who was also the part of delegation, said, “Bicycle, being a “poor man's luxury vehicle” plays an important role. As a complete bicycle attracts the central excise duty of 2 percent, the price gets increased by Rs 50, directly affecting the common man.”

Jain added, “The governments of different states are buying half a million bicycles to distribute free of cost to school students. The MSME ministry should encourage made in India parts.”

The delegation also demanded that a steer regulatory committee should be set up so that the cost of steel is regulated.

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