Fastener industry seeks bailout plans in Ludhiana

LUDHIANA: Going through severe recession, the fastener industry of Ludhiana is keenly anticipating Punjab government's budget to act a catalyst to help bring change in its fortunes. Businessmen hoped for measures like increasing incentives under Punjab government vehicle scrapping policy, bank interest subsidy scheme for small industry.
Narinder Bhamra, president of Fastener Manufacturers Association of India (FMAI), said, "As far as the present situation is concerned, fastener manufacturers are facing huge problems - stagnant demand being the worst. Our industry desperately needs a sales push, which is only possible if the state government hikes incentives under its scrapping policy. The chief minister and finance minister should consider increasing tax rebate on purchase of new vehicles to 30% in the scrapping policy and allocate funds for this purpose in this budget. This will lead to huge increase in sale of new two-wheelers, four-wheelers and commercial vehicles which in turn will create demand for fasteners."
Garish Gupta, another prominent fastener manufacturer, said, "The fastener industry of Ludhiana produces more than 70% of India's total fasteners, but due to apathy of the successive governments, we have not been able to achieve the required growth. We request the present state government to take corrective measures in this budget for the progress of our industry and at least introduce bank interest subsidy scheme for micro and small units which currently are availing bank loans and cash credit limits. This will give a huge financial support to the small factories which already are passing through very difficult phase due to sharp rise in expenses."
Kuldeep Singh, general secretary of FMAI, said, "Fastener and other engineering goods manufacturing industry also wants a new body whose sole purpose should be to buy steel raw material directly in bulk at regulated rates from steel plants in other states. This body will not only help resolve the problem of fluctuation of rates of steel every now and then, but will also prove a source of income for the state government as this body can charge nominal commission from industrialists for its services. We urge the finance minister to announce setting up such a body or department in this budget."