After a tepid 2022, Ludhiana bizmen hope for productive year

Ludhiana: Year 2022 may not have turned out to be good for the industry of Ludhiana due to havoc created by Covid-19 in the initial months of the year that were followed by several other problems for the businessmen. City Inc, meanwhile, are hopeful that the new year 2023 will turn out to be better one and when all their aspirations and demands, which remained unfulfilled, will be accepted by the state and Centre governments.
According to Upkar Singh Ahuja, president of Chamber of Industrial and Commercial Undertakings, “Biggest wish of the industry for the year 2023 is that there are no lockdowns and disruptions of operations due to Covid or any other calamities. Besides, we are hoping that the state government will adopt pro-active approach in addressing the issues concerning the trade and industry.”
Atul Saggar, general secretary of Apparel Manufacturers Association, Ludhiana, said, “We are hoping that in the year 2023 the state government will bring out one-time settlement scheme for all pending VAT assessments for all years and formal announcement about abolition of professional tax will also be made so that the business community can heave a sigh of relief.”
According to Vlaiti Ram Durga, joint secretary of United Cycle and Parts Manufacturers Association, “The biggest wish of the engineering component manufacturing industry is that the rates of steel raw material in year 2023 remain uniform. In 2022 we have suffered huge losses due to the artificial fluctuations in the rates of steel and both Centre and state governments did not take any concrete measures to help us. We are also of the view that the state government should introduce an unconditional scheme to provide freight subsidy to us.”
The previous year has been year full of ups and downs for the city’s trade and industry right from the start. During initial months of 2022, the businesses were under huge stress of the devastations caused by Covid-19, but were able to recover later in the year.
The year 2022 started with jolt to the footwear traders and manufacturers as the Centre government increased the GST applicable on the sector from 5 to 12% from January 1. However in other decision by the Centre, which came as a relief to the businessmen, the Central Board of Indirect Taxes and Customs (CBIC) allowed taxpayers the opportunity the reason for the mismatch in their returns and for short payment or non-payment of tax. As per earlier notification, the officials were given free hand to take actions like visit the business premises to recover tax without giving any opportunity to the taxpayer no even giving notice regarding the discrepancy.
Meanwhile, the Punjab government also gave a jolt to the businessmen in the first month of 2022 by issuing notification to reinstate disbanded truck unions in state that did not go down well with the industrialists and was opposed by them.
On February 1, budget was announced that failed to please city’s industry, specially those from fastener, auto parts and allied engineering product manufacturers.
The month of March did not start well for the city exporters dealing with Russia because major shipping lines terminated the booking of cargo for Russia due to its war with Ukraine. The development dealt a big blow to garments, engineering goods and pharmaceuticals exporters.
One of the major highlight of this year on June 5 on the occasion of World Environment Day a common effluent treatment plant (CETP) having capacity of 50 MLD (megalitres per day) at local Tajpur Road started its operations. This CETP came as a big relief to over 120 units of hosiery and dyeing industries in Tajpur Road area as it would help in treating the water used by these units for various industrial processes.
In July, the proposed textile park project at Mattewara was scrapped by the Punjab government after a huge uproar of civil society against this prestigious project in which Centre’s aid was also to be given in setting up a dedicated industrial area for textile industry.
In August 2022, steel giant Tata announced setting up of steel production plant with capacity of 0.75 million ton per annum in Ludhiana. The state government in the same month allotted 115 acres to the company to setup the plant near Dhanansu.