Petroleum, LNG Regasification Excluded From Incentive Scheme In Gujarat, Energy Information, ET EnergyWorld
AHMEDABAD: Although the state government recently came up with a brand new incentive scheme overlaying small to extremely-mega initiatives, trade may be in for some disappointment as the government has excluded few sectors, where Gujarat has robust benefit, from the incentive scheme.
The sectors that have been excluded are petroleum, cement and soda ash, regasification of liquefied natural gas (LNG), transmission of pure gas, manufacturing of jewellery and even Khadi Udyog.
In order to attract investment and generating more employment, the state government has lately declared a “Scheme brent crude oil price september 2017 for Incentives to Industries (Basic) 20162021” underneath present Industrial Coverage 2015. The five-12 months scheme guarantees reimbursement of internet Worth Added Tax (VAT) in the vary of 70% to 90% for 10 years relying upon the character of the tasks -extremely-mega, mega, giant and MSMEs.
“The federal government’s view was that sectors with low tax exemptions and excessive employment potential should get priority . Refineries and such sectors have obtained enormous financial help in the previous few years. The state additionally needs revenue to fund welfare activities, so it was decided to broaden the base of industries for in centives fairly than giving large incentive to at least one unit,” stated industries commissioner Mamta Verma.
Some business players, however, imagine that ignoring key sectors could have an effect on the industrial in addition to employment growth within the state.
Despite Gujarat having so much of limestone reserves, cement has been excluded from the checklist of eligible sectors. “At current, funding local weather may be very sluggish. You need huge ticket funding initiatives and there’s a must incentivize them,” stated a leading cement firm official.
In line with Sunil Parekh, a city-based mostly industrial advisor, the sectors for which the state has pure aggressive advantage do not require incentives. “The state has port services and huge refining capability . There is a lifelong benefit for petroleum sector relatively than incentives, that are given solely once. Gujarat also has the advantage of giant limestone reserves for cement business . Transportation of the mineral could be very pricey and therefore, cement makers will routinely come to the state,” he stated.
He feels that incentives are required for growing new sectors. “If incentives are given to an anchor investor in new sector, it will even appeal to distributors and allied industries.So incentives are good for growing new sectors,” Parekh mentioned.
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