Vinod Thapar, Chairman, Knitwear Club and Charanjiv Singh, General Secretary, Knitwear and Textiles Club
Urge Union Ministers Sampla, Harsimrat Badal to get bailout package for Punjab
Punjab’s Knitwear industry flays extension of tax exemption to Himalayan states
Ludhiana, August 16, 2017: Reeling under acute distress, Punjab’s Knitwear industry has accused the Centre of continuing discrimination against Punjab as it extends tax exemption under special industrial package to neighbouring Himalayan state of J&K, Uttarakhand and Himachal Pradesh.
Reacting sharply to the Centre’s decision, the prominent leaders of knitwear and textiles segment which is the traditional mainstay of Punjab’s industry have demanded a level playing field denied to them since announcement of the special industrial package to these states by NDA Government under former Prime Minister AB Vajpayee .
Chairman, Knitwear Club, Vinod Thapar and General Secretary, Knitwear and Textiles Club, Charanjiv Singh urged the state government to take up the issue of extending the tax exemption to Punjab under the special package.
At the same time, both leaders also strongly urged the Union Minister from Punjab, Vijay Sampla and Harsimrat Badal to plead their case for including Punjab in the central scheme of special package to bail out the ailing industry.
“Since BJP and Akali Dal are the major political stakeholders in Punjab, it becomes incumbent upon both ministers to fight effectively for the interests of Punjab’s industry. Since both ministers are part of the Central government, it is expected of them to protect the interests of Punjab’s industry,” said both industry leaders.
Over a century-old knitwear industry concentrated mainly in Ludhiana is passing through a very critical period for want of central policy assistance to help it survive. Thousands of units in small-scale and cottage sectors associated with it are on the brink of closure as a direct fallout of the exclusion of Punjab’s industry from the special package for over one and half decades since the special package for industrial promotion was given to the Himalayan states.
The 12-28 percent rate on various knitwear products under recently implemented Goods and Services Tax (GST) has dealt a death below. The industry here has reached a bankruptcy stage. The continuing decline has not only caused a severe crisis of survival, the denial of package has also caused loss to the state exchequer, they maintained.