Excise duty relief in Kutch welcomed

By Our Special Correspondent

GANDHINAGAR, AUG. 4. The industries associations have welcomed the Central notification granting excise duty exemptions for five years for setting up industries in the earthquake-hit Kutch district in Gujarat.

The Prime Minister, Mr. Atal Behari Vajpayee, had during his visit to Kutch on June 3 announced the Central excise duty exemption to industries in a bid to revive the economy of the earthquake-hit border district. The necessary notification granting the exemption was issued by the Centre on Thursday.

Similarly, the State Government notification granting Sales Tax exemption for five years was expected in about a week, the Industries Minister, Mr. Suresh Mehta, said. The Chief Minister, Mr. Keshubhai Patel, had promised the ST exemption from the same platform after Mr. Vajpayee announced the Central excise duty relief.

Only new industrial units, except a few put in the banned list, setting up units in Kutch and commence production by July, 2003, would be entitled for the exemption.

A mere re- location of the units already existing in other parts of the State or setting up only an assembly unit in Kutch would not be entitled for the exemption.

Small units with investments up to Rs. 20 crores in plant and machinery would get exemption twice the limit of the total capital investment for five years while no such caps had been imposed on industrial units with investments over and above Rs. 20 crores.

To protect the oil engine and clock industries in the neighbouring Saurashtra region, certain industries had been put on the banned list of exemption.

The units manufacturing candles, footwear up to Rs. 125 per pair in retails, tableware and kitchenware, imitation jewelry, monochrome television receivers, bulbs up to Rs. 20 per piece, sun-glasses, watches and clocks up to Rs. 500 in retail, toothbrushes, hydrocarbon oil with more than 18 mm smoke content, cotton sewing thread and such other items would not get the exemption.

The State Government expects investments of over Rs 25,000 crores in the district due to the Central Excise and Sales Tax exemptions but is yet to receive a concrete proposal.

According to Mr. Mehta, since the Prime Minister's announcement, the State Government had received more than 100 inquiries from the willing investors but he could not say how many of these would actually be converted into projects.

The trade sources said a large number of plywood manufacturing units were showing interest in setting up units in Kutch district in view of the tax holiday and availability of timber in the district.

Send this article to Friends by E-Mail

Section  : Other States
Previous : Assam order on tea gardens registration
Next     : J&K bans private practice by doctors