Phailin effect: Calamity stricken MSMEs seek Rs 2,000 cr

Demand tax holiday, moratorium for repayment to banks, institutions for at least one year

Hrusikesh Mohanty Behrampur
Last Updated : Nov 01 2013 | 10:45 PM IST
The Odisha Industries Federation (OIF) has demanded tax holiday for the micro, small and medium enterprises (MSMEs) in south Odisha’s Ganjam district for at least one year.

The federation has sought around Rs 2,000-crore grant-in-aid from the government to rebuild the infrastructure damaged due to the cyclone Phailin and subsequent floods. OIF has also pressed for a one year moratorium on all statutory repayments of banks and financial institutions. “The total loss to the MSME sector due to Phailin and floods is not less than Rs 1,500-crore. These units can only be revived through immediate intervention of the state and Central governments,” said OIF vice chairman (southern zone) Rajendra Kumar Mishra.

The federation has submitted a memorandum to the joint director of industries, S K Sarangi during his recent visit to the district to assess the damage caused to the MSME.

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Mishra said the MSME units should be exempted from payment of service tax, value added tax (VAT), central excise and income tax for at least one year. He said around 1,000 MSMEs of the district were severely affected in the twin disaster. The affected units include rice mills, cashew processing units, kewda distillation plants, crusher units, granite processing units, hotel industries and salt industries. Besides, several other enterprises engaged in electrical manufacturing, plastic and polymer, fabrication and engineering and wood based industries have also sustained huge loss in the natural calamities. The representatives of different associations have expressed their deep anguish over the negligence of the machineries in addressing their problems.

According to Badri Patro, general manager, district industries centre (DIC), there are 2009 registered units in Ganjam district. The exact number of units damaged in the recent calamities could only be known after the assessment of individual industries, he said. “We have asked the industrial promotion officers working in the field to enumerate the damage caused to the units and submit the report by November 15,” he said.

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First Published: Nov 01 2013 | 8:19 PM IST

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