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Ludhiana: Proposed factory act will result in ‘excessive burden’ on SMEs, says CICU
CICU president Upkar Singh Ahuja said the new rules will increase license fees by over three times, creating significant financial strain on businesses already struggling with multiple challenges
The Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana, condemned the Punjab government’s recent proposal to implement New Factory Act rules and said the changes will lead to an “unreasonable financial burden” on small and medium enterprises (SMEs).
CICU president Upkar Singh Ahuja said the new rules will increase license fees by over three times, creating significant financial strain on businesses already struggling with multiple challenges. He emphasised that these regulations will cripple the state’s industry, which is already facing difficulties in maintaining operations.
“As the ancient proverb goes, A chain is only as strong as its weakest link, these new rules threaten to break the very backbone of Punjab’s industrial sector,” Ahuja said.
CICU general secretary Honey Sethi said, “The government’s aim to achieve a ₹5 trillion economy is commendable but such decisions will only serve to hinder growth. The new rules will force many businesses to close down, ultimately leading to job losses and economic stagnation.”
Ahuja highlighted the disparity in license fees under the new rules, citing an example where the fee for a power connection between 101 to 250 kW will increase from ₹3,000 to ₹10,500. He urged the state government to reconsider the implementation of these rules.
“We implore the government to understand the dire consequences of these regulations and take immediate action to rectify the situation,” Ahuja said.
