CM seeks tax holiday for industry

Tribune News Service

Shimla, January 18

Chief Minister Jai Ram Thakur today urged the Centre to provide 100 per cent tax exemption to industries for five years and 50 per cent for the next five years, besides making a provision of interest subvention of 7 per cent for seven years to promote industry in the hill state.

Speaking at the pre-Budget meeting of Finance Ministers of all states and UTs in New Delhi under the chairmanship of Union Finance Minister Arun Jaitley, the CM demanded subsidy/viability gap fund for operating flights and heli-taxi services on the pattern of the Northeastern states to Himachal.

He said the state had enormous possibilities for expansion of tourism activities and keeping this fact in view, there was need to promote air traffic. He suggested that the Union government should make an announcement regarding expansion of helipads in all state capitals from Central Budget, besides making budgetary provisions for expansion or construction of airports in hill states.

Thakur also suggested reducing the corporate tax rate up to 20 per cent for industrial development. He said entrepreneurs of the state were denied the benefits of capital investment subsidy which ended in March 2017 and added that although a special committee was constituted for preparing an extensive industrial policy for hill states, no announcements had been made and requested to continue central capital investment subsidy till the new announcements were made.

Urging the Union government to restart the freight subsidy scheme and reimbursement of transport cost of about Rs 5 crore at 75 per cent, he also requested to enhance import duty on apple as was announced in the Union Budget 2018-19 so that interests of horticulturists were protected.

Stressing according priority to expansion and strengthening rail network for improving connectivity, he advocated for making efforts for constructing Bhanupalli-Bilaspur-Manali-Leh rail line, besides broad gauge track of the Pathankot-Jogindernagar rail line. He also requested to declare these projects as national projects keeping in view the strategic importance.

The other requests made by the CM included transferring power to accord environment clearances for hydel projects above 50 mw to the state government to avoid unnecessary delays, enhancing sanctioning powers to the state government under FCA ACT -1980 from one hectare to five hectares under the PMGSY to speed up works and inclusion of areas above the population of 100 and below 250 under to benefit more people.

The Chief Minister demanded the release of Rs 289 crore for 111 irrigation projects included under the Pradhan Mantri Krishi Sinchai Yojna in 2017-18 and added that out of Rs 338 crore, only Rs 49 crore was received so far.

He also urged to include Finna Singh and Nadaun Irrigation projects under priority projects of the ministry so that they could be completed by December 2019.

He also requested to remove disparity in the wage rates in the tribal and non-tribal areas under the MGNREGA. Thakur urged the Centre to announce the Disaster Mitigation Fund in the Budget for the state as it falls under seismic zone IV and V.

More funds sought

Chief Minister Jai Ram Thakur demanded the release of Rs 289 crore for 111 irrigation projects included under the Pradhan Mantri Krishi Sinchai Yojna in 2017-18. He added that out of Rs 338 crore, only Rs 49 crore was received so far. 

On the wish list are...

• Reduction in corporate tax rate up to 20 pc for industrial development
• The freight subsidy scheme and reimbursement of transport cost
• Raise in import duty on apple
• Construction of Bhanupalli-Bilaspur-Manali-Leh rail line and broad gauge track of Pathankot-Jogindernagar rail line
• Power to accord environment clearances for hydropower projects above 50 mw
• Release of Rs 289 crore for 111 irrigation projects