Engineering exporters have made a strong plea to the West Bengal government for release of “considerable amount of money” blocked with state due to VAT related issues.
The issue was raised at a meeting of the engineering exporters’ apex body, EEPC India, presided over by state MSME secretary Rajiva Sinha in Kolkata on May 3.
In his presentation, the Regional Chairman (ER) EEPC India Arun Kumar Garodia said, “Exporters have mentioned that considerable amount of money is blocked with the West Bengal government which should be refunded on time. The main issue is pertaining to pre and post export assessment of VAT.“
Besides, he said, there exists 15% duty on gross amount of power bill which should be waived off for exporting companies. Garodia said for pollution control, the factories should be encouraged to set up more and more solar power related equipment and installations towards the Green Energy initiative. “Government should extend 75% incentive on such equipment and intallations“.
The engineering exporters, based in West Bengal, are mostly related to the MSME sector. As on March 31, 2015, there are about 1.46 lakh registered Micro & Small Scale Enterprises, employing nearly 14 1akh people.
There are significant number of MSMEs in metal casting, ferro alloys, iron & steel, electrical equipment and appliances manufacturing. According to a study done by the Indian Institute of Foreign Trade, there is a good potential of value addition thrust in precision instruments, publishing and printing, leather tanneries, automobile components and non-metallic minerals. Similarly products like metals and basic metals are lagging behind currently, but there is significant scope of enhancing their manufacturing and exports through value addition.
Garodia also raised the problem of infrastructure. He said reduced river draft is a critical problem for the Kolkata and Haldia port. Due to this, mother vessels are not coming to these ports and feeder vessels are the only help. Therefore both transportation time and costs are getting increased for the unit setting up such equipment.
Most of the SME sector engineering units are located in Howrah belt. This belt is slowly converting into residential one. These factories need shifting to newer areas with adequate infrastructure such as power, drainage & sewerage, Proper service roads etc. Govt should assist and help these factories to relocate smoothly and also extend certain incentives to combat the cost to be incurred for relocation.
World class convention centre and Trade Fairs with all modern facilities should be built up in order to invite foreign companies. Easy accessability and adequate parking with proper security should be created. This will go a long way in bright prospects for doing business.
Exporters request that containers should not be stopped at Kalitala Parking. Rather it should be allowed to go straight up to Warehouse at Bongaon. This facility could be atleast allowed for Super Star Trading House like Telco, Tinplate etc. This will help in avoiding Congestions and facilitate timely exports. Exporters are prepared to pay the charges at the warehouse instead of at Kalitala.
Source: The Economic Times
