Rationalise 'unreasonably high' freight cost, demands CII

The Confederation of Indian Industry (CII), Himachal Pradesh, has urged the state and Central governments to rationalise unreasonably high freight cost by taking requisite measures as high freight was making the industry uncompetitive.

The CII pointed out that the cartelised transportation system in the state was the biggest bottleneck for doing business. it was causing huge damage to the growth and competitiveness of the industry. The investors also urged the state and Central governments to take necessary measures to rationalise the unreasonably high freight cost.

CII representatives, who interacted with Sukriti Likhi, chairperson, National Authority for Chemical Weapons Convention, during a visit to Shimla discussed these key issues along with other challenges being faced by industries in the state, especially pertaining to ease of doing business initiative. The industry captains also suggested measures to counter such challenges to foster a business friendly ecosystem in the state for the overall growth and development of the state. Likhi has also been entrusted the task of looking after Centre’s EoDB initiative for Himachal.

The investors also pointed out steps required to attract fresh investment to the state and retain the existing industries. “During the interaction, the CII also highlighted the need to expedite major infrastructure projects impacting industrial growth like four-laning of Pinjore – Baddi national highway which would provide connectivity to all industrial areas of the state with rail network and enhance the air connectivity,” said Deepan Garg, Chairman, CII, Himachal Pradesh.

Besides, CII has also urged the Central Government to subsume the state-level levies like Additional Goods Tax and Certain Goods Carried by Road tax in the GST as they are against the spirit of ‘one nation, one tax’ regime.

“Himachal Pradesh, despite being a power-surplus state, has higher electricity tariffs than neighbouring states. CII calls for necessary interventions to bring down the power tariffs, making industrial operations more cost-effective,” observed Garg.