Major cycle manufacturing units of Ludhiana such as Hero and Avon Cycles have been approached by the Bihar government for establishing plants and ancillary units in Hazipur and Muzafarpur. Smaller city-based cycle units are shifting out of Ludhiana to the state.
The Bihar government’s scheme for providing 12 lakh cycles in the current year under the “Chief Minister Balik-Balika Yozana” is also serving as a stimulus to encourage cycle companies to set up new plants in the state.
Hero Cycles Director SK Rai said the Bihar government had invited his company’s officials and he was examining some proposals.
“It was their first visit and nothing has been finalised yet,†added Rai.
Nova Cycles Managing Director HM Pahwa added: “The process has begun and let’s see how many units from the city opt for setting up their units in Bihar. The incentives offered are no doubt, sounding lucrative,” he said.
Sensing that Bihar’s gain could be Punjab’s loss, the Chamber of Industrial and Commercial Undertaking (CICU) has urged the Punjab Chief Minister to grant a stimulus package to retain prominent cycle makers of Ludhiana.
CICU joint secretary Upkar Singh said city-based cycle units should be impressed upon to go for expansion of their plants in Punjab rather than investing in Bihar for establishing new units.
“There is no labour problem in Bihar. Land is also cheaper. All these factors compel the industry to invest in Bihar,†said Avtar Singh, CICU general secretary.