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LUDHIANA: Condemning the
recent recommendation made by the Ministry of Commerce to extend the
industrial package to Himachal Pradesh up to 2013, The Federation of
Association of Small Industries of India (FASII) termed it to be a
"politically motivated" move.
FASII said due to the decision, the industry in
Punjab had suffered huge losses and the extension would further
aggravate the problem. Chairman of the Punjab
Chapter of FASII Badish K.Jindal said the exemptions to HP were going
to end in March, 2010, and the industry in Punjab was hopeful of
getting relief but the recent recommendation for extension by Minister
of Commerce Anand Sharma, who belongs to HP, had come as a jolt to the
small and medium industry here. "The GDP rate of
Punjab is already below national average of 8.49 per cent and its per
capita, which was more than Haryana in 2000 is now 30 per cent below
Haryana. No big industrial project has come to Punjab for the past
seven years since the sops provided to other states. Punjab has been
made to satisfy itself with just a few housing projects", rued Jindal. The
industrialists further added that in the past 5-6 years, Himachal
Pradesh had succeeded in attracting the outside investment of Rs 40,130
crore. In the draft provisions of GST, the industries of the exempted
states would claim the cash benefits, whereas the industry in Punjab
would be in losses. FASII members have threatened
if the Central Government extended the package to HP, the industry in
Punjab will boycott central tax in Punjab. Meanwhile,
president of Apex Chamber of Commerce and Industry P.D.Sharma added
that extension of concessions would affect the industry in Punjab both
in direct and indirect manner. Some industries had presence in Himachal
only for its peripheral operations, the main operations were done in
Punjab. "But they are getting concessions for the entire product. This
affects other industries which fail to compete with them", said Sharma,
further adding that there was 100 per cent exemption on excise duty for
10 years and 100 per cent income tax exemption for the first 5 years in
HP.
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