Micro and small enterprises in Punjab want a separate policy so the sector could get more attention. These feel neglected by the recent industrial policy.
Joginder Kumar, president, Federation of Tiny, Small Industries of India, told Business Standard, "Despite micro and small enterprises in Punjab making up 90-95 per cent of the total registered units in the state, these are suffering due to government apathy.
In the recent industry policy, neither any relief was given to the existing industry nor incentive for new investment. This sector is grappling with problems such as high input cost, lack of funds and even the banks finance the project at high interest rates."
Kumar added there were 250,000 registered tiny and small units that contributes significantly to the secondary sector's share in gross state domestic product.
Under the industrial policy, the manufacturing units in Zone I, with a fixed capital investment between Rs 1 crore and Rs 10 crore, would be eligible for 50 per cent of value added tax and 75 per cent of central sales tax retention for seven years. While there was no incentive for tiny and micro enterprises, which can be set up with an investment of up to Rs 1 crore.
Kumar added, "There was no incentive for the existing industry which was heavily burdened with taxes. Being a land-locked state, promoting small-scale industry would have been the best way to boost economy and provide employment to the skilled youth.
He also suggested there be a separate policy for micro and small enterprises on a par with small business administrations in developed countries.
