MP: Soya sector says 'good', SSIs unhappy

BUDGET BYTES: VIEWS FROM THE NORTH

Indore-based Soyabean Processors Association of India complimented the Union finance minister on his Budget.

Rajesh Agrawal, former chairman of the association, said the industry had hardly any expectations from the Budget but had a few apprehensions that were proved to be right.

The finance minister in his Budget presentation has removed the special additional duty of 4 per cent on edible oils. The market has already discounted this effect.

The Madhya Pradesh Laghu Udyog Sangh has criticised Chidambaram on the issue of raising exemption on small-scale industries from Rs 1 crore to Rs 1.5 crore.

"This is a mere cosmetic change. For example, excise duty is levied on maximum retail price on drugs and medicines and not on factory prices. As a result, the excise exemptions are not effective for production. Further, no Modvat (modified value-added tax) credit is available to SSIs, particularly pharmaceutical industry. The excise duty should be on sales. Further, an increased allocation for health will benefit importers and not the domestic manufacturers and formulators," said RS Goswami, president of the MP Laghu Udyog Sangh.

Madhya Pradesh Finance Minister Raghavji has flayed Union Finance Minister P Chidambaram for ignoring Madhya Pradesh. The minister said his government had been expecting an announcement on ad valorem on coal and compensation against the huge forest area management.

Madhya Pradesh has a long- pending demand of ad valorem on coal instead of royalty, which the Centre grants on tonnage basis.

"The prices of coal have gone up and still the state is being paid coal royalty on the tonnage basis," said the minister, adding, "our forest land area is the highest in India but the central government has not offered compensation. The state has an additional burden on managing more than 33,000 sq km of forests."

The Federation of Indian Chamber of Commerce and Industry's Madhya Pradesh Chapter has complimented the finance minister on his proposals for the social sector.

However, it is felt that an opportunity of reaching a two-digit growth trajectory was missed in view of the tax proposals, the apex Industry chamber has said in a statement issued here.

Indore-based Soyabean Processors Association of India complimented the Union finance minister on his Budget. Rajesh Agrawal, former chairman of the association, said the industry had hardly any expectations from the Budget but had a few apprehensions that were proved to be right.

The finance minister in his Budget presentation has removed the special additional duty of 4 per cent on edible oils. The market has already discounted this effect.

The Madhya Pradesh Laghu Udyog Sangh has criticised Chidambaram on the issue of raising exemption on small-scale industries from Rs 1 crore to Rs 1.5 crore.

"This is a mere cosmetic change. For example excise duty is levied on maximum retail price on drugs and medicines and not on factory prices as a result the excise exemptions is not effective on production. Further no Modvat (Modified Value Added Tax) credit is available to SSIs, particularly pharmaceutical industry. The excise duty should be on sells. Further an increased allocation on Budget on health sector will only benefit importers and not the domestic manufacturers and formulators," said RS Goswami, president of MP Laghu Udyog Sangh.