Punjab budget 2016-17: Breather for Ludhiana’s cycle industry
Cycle industry in Ludhiana, which has been facing constant downturn in market and battling unhealthy cheap import from China got a major breather with the SAD-BJP government earmarking 300-acre land for establishing a hi-tech cycle valley in the city in the Budget on Tuesday.punjab Updated: Mar 16, 2016 13:18 IST
Cycle industry in Ludhiana, which has been facing constant downturn in market and battling unhealthy cheap import from China got a major breather with the SAD-BJP government earmarking 300-acre land for establishing a hi-tech cycle valley in the city in the Budget on Tuesday.
Cycle manufacturers in the city confessed that they have heaved a sigh of relief as they have been raising the issue and demanding land for expanding the cycle industry since long.
SK Rai, MD of Hero Cycles, said we had been taking up the matter with the state government for long now seeking demarcation of 100-acre land for the said purpose. “Allocation of 300 acres for establishing the cycle valley has provided the much needed breather for the cycle industry. However, what remains to be seen now is obligations with regard to allocation of corresponding funding for the project and how soon the benefits gets translated to Ludhiana,” he said. Rai also stated that the development of the cycle valley will attract investors from overseas thus boosting economy.
“With the required infrastructure for expanding the high-end bicycle market base in place, we will be persuading several investors from overseas to establish their units here. Taking them into confidence and a hand-holding exercise will be a priority now as earlier they did not consider it an easy place (India being ranked quite below in ease of doing business scale) to establish their business units here,” added Rai.Rajeev Jain, general secretary of UCPMA (United Cycle Parts and Manufacturers’ Association), said the time is ripe for the decision as hi-end cycles is the upcoming trend in the Indian cycle industry scene now.
“If implemented fully, it will prove to be a giant leap for the cycle industry, especially, achieving the aim of having an overall turnover of Rs 15,000 crore, which at present is `6,000 crore,” he said. “Export which is at its lower ebb for now will pick up besides it will also result in expanding our market base overseas. Mountain bike or mountain bicycle MTB or ATB (All-terrain bicycle) and city bicycle are the latest trends in cycling industry and required infrastructure at the newly proposed hi-tech cycle valley would assist in expanding the market base for these cycles in the coming years,” added Jain.Ludhiana, a major industrial hub, caters to country’s over 90% cycle and cycle parts requirements.