Textile industry demands new industrial policy

Punjab's textile and knitwear industry has urged the state government to formulate a new industrial policy for regaining the prosperity in Punjab.

Knitwear Club, Ludhiana, has urged the Punjab Chief Minister Parkash Singh Badal, to tackle certain problems which are a deterrent to the growth of the industry.

Speaking to Business Standard, Vinod Thapar, president of the club, said the industry in Ludhiana is competing with its contemporaries in other states with its back to the wall.

"This is because of the anomalous and lopsided nature of packages and amenities granted to other states. Punjab has so far been deprived of any package whereas states like Himachal Pradesh, Jammu and Kashmir, Uttrakhand, etc had been favoured with attractive benefits by the previous state government. As a result Punjab has to invent ways and means to offset the effects of inequality of opportunities.''

"Being a border state, we suffered due to terrorism for over 10 years. The perils associated with the border state calls for a generous package to the industry in the state," he added.

The small-scale industry is facing yet another onslaught in terms of higher rate of interest they have to pay on loans and advances as compared with big firms. The SSI units are paying interest as high as 12.5 per cent, whereas the the big firms pay an interest between 6 and 9 per cent.

"Although we do not want reversal of this policy, we request that SSI units should not be burdened with exorbitant interest rates," he added.