Punjab, known for its agricultural prowess, is now witnessing a new wave of dissent as its industrial sector takes to the streets. The Federation of All Textiles and Industries, Punjab, has announced a rail roko protest scheduled for March 1. The agitation is in response to the 45-day payment rule mandated by the union government under IT law 43B(h) in the Finance Act 2023.
Table of Contents
Backdrop of the Protest
The IT law, applicable from the assessment year 2024-25, requires companies to settle pending bills with Micro, Small, and Medium Enterprises (MSMEs) within 45 days. Failure to adhere to this rule results in increased taxable income and taxes for the financial year 2023-24. The Federation argues that such government interference in business dealings is detrimental, prompting the rail roko as a measure of protest.
Industry’s Stance
The industrialists express frustration, stating that their representations have fallen on deaf ears. Sanju Dhir, a federation member, asserts that the 45-day payment policy is intrusive, and the government should not interfere in their business dealings. The rail roko is portrayed as a last resort to grab the government’s attention, with Tarun Jain Bawa, the Federation’s president, warning of escalating protests if the government remains unresponsive.
Import Woes from China
Industrialists are not only protesting the payment rule but also expressing concerns about under-invoiced imports from China. They claim that containers of polyester cloth, subject to a 20-22% import duty, are arriving from China, with some industrialists only paying 10%, causing significant losses. Despite raising the issue, no corrective action has been taken, making many businesses uncompetitive in the market.
Impact of Farmers’ Agitation
Adding to the industry’s woes is the ongoing farmers’ agitation at Shambhu and Khanauri borders. Many borders have been sealed since March 8, affecting the transportation of goods and resulting in substantial losses for the industrial sector. Tarun Bawa Jain highlights that Ludhiana, which accounts for 60% of the state’s industry, is facing daily losses of over Rs 1,000 crore.
Transportation Challenges
Closure of borders, especially the Haryana border, has led to increased transportation costs and longer routes for goods to reach their destinations. The Ludhiana Goods and Transport Association president, JP Aggarwal, mentions that trucks are taking detours, involving extra travel and costs for customers. This, in turn, has led to a 15-20% decrease in business.
Appeals to Farmers
In an attempt to find common ground, industry leaders have appealed to farmer unions to consider the impact of their protests on the industrial sector. The Chamber of Industrial and Commercial Undertakings president, Upkar Singh, urges farmers to plan protests in a way that safeguards Punjab’s economy from further harm.
Road Closures Beyond Punjab
The repercussions of road closures extend beyond Punjab, affecting states like Haryana and Rajasthan. Rajasthan has closed borders with Punjab in Ganganagar and Hanumangarh districts, impacting kinnow farmers who now face longer routes and increased transportation costs.
Conclusion
As Punjab’s industrial sector gears up for the rail roko protest on March 1, the state finds itself at the crossroads of multiple challenges. The convergence of the 45-day payment rule, under-invoiced imports, ongoing farmers’ protests, and border closures paints a complex picture. The industry’s plea is clear – they seek government attention and resolution to safeguard their businesses and contribute to the economic growth of the state. The coming days will unfold whether the rail roko becomes a turning point in addressing the concerns of Punjab’s industrialists.Punjab’s industrial turmoil demands urgent government attention to prevent further economic downturn, urging collaborative solutions for sustainable growth.
