Blue Star, the Air conditioning and refrigeration major has announced withholding Rs.220 crore investments in Jammu and Kashmir of its enterprise. The reason given for withholding the investment is that ambiguity prevails over excise duty relief continuation in the State following GST levy. The Government has not clarified whether the relief in excise duty is going to continue or not after the Goods and Services Tax (GST) imposition.
Withholding of investment of huge dimension is a blow to the economy of the State. On the one hand we are lamenting that investment is not forthcoming so that it could contribute to the prosperity of the State and on the other hand the Government is not showing any urgency in considering or promising to consider that all incentives and facilities are provided. Blue Star is a prestigious company that has sold 3.4 lakh room air-conditioners last fiscal and is hopeful of selling 4.5 lakh air-conditioners by the end of year. No sensible company would like to withhold investment when it found such a vast market for its goods. But the Blue Star feels that its interest is not safeguarded, therefore it has taken a different position. We hope the Government will clarify the ambiguity and the Blue Star will resume its normal activity of investment in the State.
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