Ludhiana's textile industry gets lucrative incentive offers from Jammu and Kashmir; to meet Guv
Mohali, January 4: Close on the heels of meeting of top Punjab industrialists with Uttar Pradesh Chief Minister Yogi Adityanath, Ludhiana's dyeing and textile industry is mulling shifting their business to Jammu and Kashmir.
It is learnt that the Centre and the state of Jammu and Kashmir were offering lucrative incentives to garments manufacturers from Punjab's Ludhiana district to set up their business there.
Chairman of the Mishra Group of Companies, Ludhiana, TR Mishra said there were 13,000 dyeing and textile units in the city. Amid deteriorating law and order situation in Punjab, most industrialists were mulling expanding their business to other states, for they did not feel safe here.
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Apart from this, "lack of decision-making" by Punjab Chief Minister Bhagwant Mann over an industrial policy was also behind possible exodus of the industry from Punjab. TR Mishra alleged that bribery was rampant in Punjab.
On the other hand, Ludhiana's garment industry is facing losses. Garment manufacturers blame the AAP government in the state for their poor financial health
They say with the Centre and Jammu and Kashmir offering them best incentives for setting up industries there, they are ready to shift. "We will have low cost of production in Jammu and Kashmir," say Ludhiana garment manufactures.
It is learnt that Jammu and Kashmir is offering unmatched incentives to the industry. They are being offered 30 per cent state capital investment subsidy; five per cent interest subsidy on working capital and GST reimbursement and freight refund scheme.
Ludhiana garment manufacturers say overall situation in Punjab is not good. They feel J&K as best alternative to Punjab. They also accused the Punjab Government of not doing enough to bail them out of financial crisis.
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Harish Dua, president of the Knitwear and Apparel Exporters Organisation, say they will take a delegation to Jammu and Kashmir to meet the Governor with their investments plans.
Earlier, amid deteriorating law and order situation, poor industrial policy and lack of interest by the AAP government, Punjab industrialists met the UP CM for investment. Top industrialists from Punjab such as owners of Avon and Hero Cycles have committed investment in UP.
The meeting in UP was organised by the Atal Purvanchal Industrial Development Council, whose chairman is TR Misra, owner of boiler industries in Ludhiana. TR Mishra had led the delegation of industrialists to UP.
Major stakeholders for investment in UP are Punjab’s Avon Group (proposed investment of Rs 500 crore in UP) and Hero Group (proposed investment of Rs 350 crore). Mishra would himself invest Rs 30 crore in a boiler unit in Kanpur.
As per Mishra, Punjab industrialists have already committed an investment of Rs 2.26 lakh crore. By March 31, 2023, Rs 5 lakh crore will be invested by Punjab industrialists in UP.
- PTC NEWS
