The cycle industry in this part of the region has claimed that it was capable of beating China in bicycle production if provided the latest infrastructure and technology.

The cycle industry needs help from the Central government and special package for upgrading old machines and technology.

As per the figures with the United Cycle and Parts Manufacturers' Association, in 2001, India produced 1.31 crore bicycles whereas the production in China was around 5.5 crores bicycles. Many new models with latest technology were introduced by China. Today, China was able to make 9 crore bicycles every year, but India could not manufacture more than 1.4 crore.

“China has reached every developed nation whereas India has been able to capture South Africa, certain parts of the UK and the US. Due to less interest taken by the government, the cycle industry is not able to grow at a good pace. Technology up gradation is must for the progress of this particular industry,” said DS Chawla, president, United Cycle and Parts Manufacturers’ Association (UCPMA). He said the government should create a technology up gradation fund.

He said the date of submitting Form C and H should be extended up to March 31, 2010. The forms were to be submitted by purchasing dealers outside Punjab but the state government was short of these forms. "Even the old process on VAT refund should be continued to avoid botheration to the industrialists,” said Chawla.

Chairman of association Manjeet Singh Khalsa said the Punjab government should declare the areas where the industry was running from the last few decades as industrial area. He said 70 per cent of city's industry was being run on mixed land use. He said the permission given for peak load exemptions was a welcome step but the permission given up to May 31, 2010, should be made permanent.