Punjab's auto parts makers today appealed the state government to set up an industrial park for auto parts in Ludhiana to boost this sector.
Industry also sought fiscal incentives from the government on the lines of sops offered to state's textile sector in new industrial policy in order to attract new investments.
"In order to provide impetus to auto components sector, the state government should step up its efforts to attract new investments. And this can be possible if special industrial park entailing fiscal incentives for auto parts can be set up especially in Ludhiana.
"Moreover, a separate policy for automotive parts can also be thought of to propel its growth and development," said a Ludhiana based auto component maker Avtar Singh.
Chamber of Industrial and Commercial Undertaking, General Secretary Upkar Singh said the state government should also offer similar incentives like exemption in VAT, stamp duty, CST, property tax etc as being offered to integrated textile units.
"This support is indeed required to beat the challenge and maintain growth trajectory which will enable automotive components industry to survive in the local and global market in the present hostile economic scenario. This measure will accelerate flow of funds, output, employment and exports for this sector," he said.
Ludhiana in Punjab is a major hub of auto parts components catering to several big automobile companies with annual production of about Rs 5,000 crore, he said.
