Neeraj Rohmetra
JAMMU, Oct 15: The State Government has submitted a detailed proposal to the Union Commerce and Industry Ministry dwelling upon the need for continuation of incentives for entrepreneurs of the State, which had expired in June this year.
“Top officials of the State Industries Department have interacted with the incumbents of the Union Ministry and explained that the incentives were imperative for survival of the industry in the State”, official sources said adding, “there were certain points of difference between the two, but they are likely to be resolved soon”.
Sources said that there would be no compromise as far as the issue of extension of industrial package to the State is concerned. “Another point of contention is that future timeline of the industrial benefits being extended to the State. While the Union Ministry was interested to extend the package for only five years, the State Government was adamant that the incentives be extended for at least another decade”.
“The State Government had submitted that while extending the package for next ten years, the Union Ministry could go for a mid-term review after five years to suggest any modifications or changes, if required”, sources stated.
Minister for Industries, Surjit Singh Slathia has also written to Union Minister for Commerce and Industry Anand Sharma requesting him to hold an urgent meeting in this context at the earliest. However, sources stated that meeting was likely to take some time in view of ‘disturbing’ political developments at the Centre and also as Home State of the Union Minister — Himachal Pradesh is bracing up for Assembly elections in the first week of November”.
Authoritative sources stated that the State Government was deeply concerned over the expiry of package of incentives to industrial sector, which was a major source of employment for the entire State. The issue was also discussed in the meeting of State Industrial Advisory Committee held on July 24 this year under chairmanship of the Chief Minister.
“The State Government has strongly pleaded before the Union Commerce Minister their case and urged them to maintain status quo in all the industrial incentives being extended to the State till June 2012”, sources said.
“Since the industries server as major source of employment in the State, the Government had also urged the Commerce Ministry to extend these incentives to even industries located outside designated industrial estates. Earlier, the package of incentives had been given only to entrepreneurs located in the designated industrial estate of the State”, they added.
Industries Minister, Surjit Singh Slathia when contacted told EXCELSIOR that the package of industrial incentives were very crucial for survival of industry in the border State. “The industrial sector is being subjected to great distress due to expiry of these benefits. Several industrialists have also discussed the issue with me and the matter is also in the knowledge of the Chief Minister. The State Government is doing the best possible effort to ensure early revival of these incentives”.
“We are hopeful that the Union Industry will hold a meeting as early as next week to sort out the issue and then the file will be put up before the Union Cabinet”, he asserted.
Commissioner-Secretary Industries and Commerce Department, Shant Manu while commenting on the status of the package emphatically stated that several meetings had already taken place with the officials of the Union Ministry and that there was likelihood of an early solution to the problem.
Earlier, this year the Union Commerce and Industry Ministry had also recently conducted an Impact Evaluation Study for the Special Package Schemes, which were being extended to industrialists in the Jammu and Kashmir State. A team of officials of the Department of Industrial Policy and Promotion (Special Package Section) had interacted with all the stakeholders including industrialists during their visit in March-April this year.
The objective of the Study was to evaluate various benefits, which were being rolled out the border State as a part of various Special Package Schemes. The officials have submitted their detailed report to the Ministry of Commerce.
The Special Package Scheme given by the Ministry of Commerce and Industry included Central Capital Investment Subsidy Scheme, Central Interest Subsidy Scheme and Central Comprehensive Insurance Scheme and all these schemes expired on June 14 this year.
The Central Capital Investment Subsidy Scheme had earlier started with subsidy of 15% of investment of plant and machinery subject to a ceiling of Rs 30 lakhs for a period of 10 years till 14 June 2012. However, with effect from 6th January, 2011, this scheme had been enhanced to 30% of investment in plant and machinery to industrial units in Micro, Small and Medium Enterprises sector commencing commercial production or becoming operational/ functional as the case many be on or after 6th January, 2011 in respect of new units or additional such investment in respect of first ceiling of Rs 3 core and Rs 1.5 crore for manufacturing and service sector respectively.
The Central Interest Subsidy Scheme involved subsidy of 3% on the working of capital loan for a period of 10 years and the Central Comprehensive Insurance Scheme involved 100% subsidy on capital investment for a period of 10 years.
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