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This is an archive article published on February 21, 2024

Now, Punjab industrialists announce rail roko on March 1

Punjab’s industry has raised its voice about the losses being incurred owing to the restrictions that governments have placed on road transport

Farmers' protestPeople gather at the protest site, as farmers march towards New Delhi, at Shambhu barrier on Wednesday. Reuters

After farmers, it appears that Punjab industrialists are also in protest mode. The industry body has announced a rail roko on March 1, in protest of the 45-day payment rule imposed by the union government under IT law 43B(h) in the Finance Act 2023. On Wednesday, the Federation of All Textiles and Industries, Punjab, announced a rail roko on March 1 along the Ludhiana-Delhi rail line from 11 am to 1 pm, initially involving employees. Tarun Jain Bawa, the president of the Federation, stated, “If the government does not respond, our protest will intensify.”

The IT law applies from the assessment year 2024-25, requiring companies to settle pending bills with MSME units within 45 days to maintain market cash flow. Failure to do so will increase taxable income and taxes for the financial year 2023-24, as deductions can only be claimed in the year of actual payment. This law has stirred concerns in industrial circles nationwide, leading to a PIL filed in the Supreme Court by industry bodies from states other than Punjab.

“Normally, industrialists don’t resort to such protest measures, but we have no choice now. Our representations have fallen on deaf ears. This 45-day payment policy is detrimental, and the government shouldn’t interfere in our business dealings. Frustrated with the dictatorial attitude of the government, we will stage a rail roko on March 1. Perhaps this is the only way to make ourselves heard,” said Sanju Dhir, another federation member.

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Furthermore, industrialists are upset about under-invoiced imports from China, causing significant losses to the country’s exchequer. Bawa highlighted, “Containers of polyester cloth, subject to a 20-22% import duty, are arriving from China, but many industrialists are paying only 10%, causing crores of rupees in losses. Despite raising the issue, no action has been taken. This tax difference is making many others uncompetitive in the market.” The industry is already reeling from losses due to the ongoing farmers’ agitation at Shambhu and Khanauri borders, with many other borders sealed since February 8, added Bawa.

Meanwhile, more than 10 days after the Haryana border was closed to stop the farmers’ protest march to Delhi, Punjab’s industry has raised its voice about the losses being incurred owing to the restrictions that governments have placed on road transport.

Tarun Bawa Jain, said that over Rs 1,000 crore is the daily loss of the industry in Ludhiana, which accounts for 60 per cent of the state’s industry.

“From Ludhiana, on an average Rs 2,000-2,500 crore’s worth of goods are sent on a daily basis to various parts of India. Normally these go by road till Delhi or Gurgaon, but it has become quite a task to make our goods reach there as there are so many restrictions on the way. The transportation cost has increased and so have our losses. So it is high time the central government thought about the industry as well. They need to get the matter resolved. It is getting uglier by the day,” Jain told The Indian Express.

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Sanju Dhir, added, “Our goods go in big containers, which cannot pass through villages. They need to cover a longer route or can be sent via train. However, normally our goods are sent via road as it facilitates end-to-end delivery. Only a small stock has been shifted to goods trains from the hosiery sector after the agitation.”

There are over two lakh registered micro, small and medium enterprises in Punjab, out of which over one lakh are in Ludhiana.

JP Aggarwal, president of the Ludhiana Goods and Transport Association, said, “Due to the agitation, our trucks carrying goods turn from Rajpura towards Panchkula and later reach Delhi through that route. This involves 80-100 km extra travel, which means extra costs are being incurred by the customer. Around 15-20 per cent business has come down as well. Those people must have shifted to trains or are following a wait-and-watch policy. Otherwise these days no one waits and tries to retain their customers.”

Jain said the goods mostly contain hosiery, auto parts and cycles. He said that governments should not make people wait for years for their demands to be fulfilled.

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Earlier, All Industries Trade Forum president Badish Jindal wrote a letter to farmer union leader Sarvan Singh Pandher asking him to think about the industry as well. He said the whole state had supported farmers during their 2020-21 agitation.

“Now they should also support the industry and plan protests accordingly so that the industry doesn’t suffer,” he said.

Chamber of Industrial and Commercial Undertakings president Upkar Singh had also advised farmers to plan protests in a way that Punjab’s economy will not get hurt.

Apart from Haryana, Rajasthan has closed the borders with Punjab in Ganganagar and Hanumangarh districts. Kinnow farmers say they send their produce to Delhi via Ganganagar but that the vehicles now have to take longer routes spending extra money.

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Sukhmandar Singh, president of the BKU Rajewal in Fazilka district, said, “This year kinnow farmers suffered losses due to glut and now road closures are adding to the losses.”

Asked about the farmers’ protest, he said, “They are from our own community. The problem is with the central government. It forces people to sit on roads and later prevents them from protesting.”

Darshan Singh, general secretary of the BKU Rajewal’s Fazilka unit, said, “Moreover, no one is coming from that border to Ganganagar and no dharna has been staged. Still they are not opening the road. So we have to take detours through villages to go to Delhi… Transportation rates have doubled from Rs 10,000 per mini-truck because of these hurdles.”

Some of the main routes that have been closed

  • National Highway 1 at the Shambhu border (Amritsar- Delhi road)
  • NH 54: Bathinda-Dabwali border
  • NH 71: Khanauri-Jind
  • Budhlada-Fatehabad (state highway)
  • Malaut- Dabwali
  • Abohar-Ganganagar (Rajasthan)
  • Abohar-Hanumangarh

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