Punjab exporters delays Rs 500 cr projects in Gujarat

Chandigarh: A group of Punjab-based exporters, who planned to expand in Gujarat with an investment of Rs 500 crore, has delayed their proposed capital expenditure projects by six to nine months in view of economic slowdown.

Observing that the meltdown has hit the light engineering business in Punjab, exporters now do not want to spend money on new projects. Rather they plan to use money on working capital in order to run and sustain our business in these adverse cond itions.

Hoping that the economic situation would improve in 2010 the exporters would look forward to start their projects in Gujarat in later part of 2009. Drying up of new orders, lack of sufficient finance and mounting expenditure due to slowdown have adversely impacted the exporting segment of engineering sector of Punjab.