Punjab auto parts units serve notice to govts

One of the biggest industries of Punjab, the auto parts industry, has threatened to shift to neighbouring states if the state and central governments continue with their "indifferent attitude" towards it.

Disappointed at the outcome of the recent visit of the Prime Minister, local industry is further peeved with the Centre for giving three years' extension in sops to units in Himachal Pradesh and Uttaranchal.

Expressing resentment at the sops by the Centre to northern states, industry representatives say these benefits have made those states attractive industry destinations.

Industry representatives say as a result of the concessions, many units from Punjab have shifted to Baddi and Barotiwala. The engineering industry, in particular, has become highly uncompetitive because the high costs here are creating heavy differentials in pricing.

Speaking to Business Standard, Surinder Singh, general secretary, Auto Parts Manufacturers Association, said that the Centre had bluntly ignored the interests of Punjab.

"If the indifferent attitude of the Centre and state governments continues, our auto parts industry will have no choice but to shift to neighboring states."

According to industrialists, a heavy flow of investment to other states was worsening the condition of the industrial segment in Punjab. They added that factors like poor infrastructure were further placing the industry here in trouble.

Gurpargat Singh Kahlon, president, Auto Parts Manufacturers Association rued that while other states which are getting concessions in taxes etc are witnessing a growth (like Haridwar is witnessing a growth in the automobile sector), the industry in Punjab is passing through a tough phase.

``Leading names like Tata Motors, Bajaj Auto, Mahindra and Mahindra, Mico and Ashok Leyland have decided to set up units at Pant Nagar and Haridwar Industrial area. Even Hero Honda has announced that its units will be operational by May 2007 in Uttaranchal."

The government should take our industry in the state seriously so as to save it. "If the government does not give a boost to the industry here, it will prove unfavorable in the ensuing elections for the ruling party," they threatened.