Punjab govt may give Rs 1,900 cr incentives to Tatas auto unit

Punjab Finance Minister Surinder Singla has said the Punjab government is willing to provide incentives amounting to Rs 1,900 crore against the total investment of Rs 700 crore by the Tatas for setting up a big auto unit in the state.

He said talks were going on with the Tatas. Singla said this while addressing a seminar organised the CII "Auto Components Industry, Destination, Punjab", here today.

Singla also asserted that with the creation of congenial environment for the growth of industry, a large number of big Industrial companies of the country are coming for the investment in Punjab, which would create substantially job opportunities for the people.

The Finance Minister said that the state of Punjab has big potential for the growth of Auto parts components Industry and the government would provide the required facilities to the big Auto units coming to the state.

He said that in the coming years, India would emerge as the major hub of Auto component production and Punjab would definitely capture its due share in the enhanced export of auto components. He informed that at present, the hard working and innovative entrepreneurs of Auto sector are contributing 10 percent of the total production of the country and 18 percent towards export of the country.

He also noted that with the shifting to open industrial policy in 1992, the economic growth rate of the country has been gradually increased from 3 percent before 1992 to 8 percent during the last year. Citing the example of telephone sector, Singla said that after the opening of this sector for the competition in the private companies, excellent improvement has been recorded and now the quality of telephone services has been substantially improved and telephones are available on demands in all parts of the country.

Further elaborating the plan of the state government to attract the big industrial companies, he said that all the decisions were being taken to bring about a revolution in the industry, which would benefit the state by way of spurt in economic growth and creating job opportunities. Referring to the conditions proposed for the Reliance Group, he said that Reliance company would have to pay the lease amount at the rate of Rs 16,000 per acre to the Panchayats, where as, at present Panchayati land fetches between Rs 10,000 to Rs 12,000 per acre annually. He said that 20 acres of land, which belongs to Punjab Mandi Board, was acquired 20 years back to set up a vegetables market and it was lying unused for a long span of 20 years. He informed that till date no final decision has been taken in this regard and said that the case would be first discussed by State level Empowered Committee for its clearance and then would be presented in the meeting of state cabinet.

Singla said that with the unnecessary and uncalled for hue and cry raised by opposition leaders against coming up of big industrial units in Punjab just for political reasons, the Tata Group has decided to set up its Auto manufacturing unit in West Bengal in stead of Punjab. He said that Dr. Manmohan Singh Prime Minister of India was giving special attention to create infrastructure facilities and special Economic Zones to boost the development and economy of the state. He said that Dr. Manmohan Singh had selected Ludhiana under Jawaharlal Nehru Urban Renewal Mission, under which, excellent infrastructure including roads, ROBs, fly-overs, local transport, adequate sewerage and water supply system would be provided and asserted that the industrial city of Ludhiana would emerge as a destination for Auto Mobile industry in the near future.

Later answering a question regarding the waving of octroi in the state, Singla assured that the octroi would be withdrawn by providing a suitable alternative income to the municipalities. Replying to an other point regarding the pending Industry subsidy, Singla informed that the government has decided to release Rs 150 crore for the disbursement of pending subsidy shortly.

Addressing the seminar, Harpal Singh, Chairman CII Punjab State Council and Chairman Fortis Healthcare Ltd. highlighted the positive aspects for the fast development of Auto Component industry in Punjab and demanded a special attention from the government to strengthen infrastructure facilities in the state.

K Jayaraman, Chief Consultant ECS Ltd made a presentation highlighting the plus and weak areas for the growth of Auto Component industry in Punjab. S C Agrawal Principal secretary Industry and Commerce Punjab and M C Munjal Ex- Chairman CII Punjab State Council and Managing Director, Majestic Auto Ltd. also addressed the seminar.