Octroi abolition in a year, says Maharashtra CM

The Maharashtra Chief Minister, Vilasrao Deshmukh, today said the government would take a decision on abolishing of octroi within a year.

He was speaking at the function organised for the release of commemorative postal stamp to mark the centenary of Indian Merchant's Chamber (IMC).

Earlier, during the function, IMC President Nayan Patel asked the state government to fulfil its promise of abolishing the octroi.

"I am aware about the industries' concerns regarding the octroi as it pushes up the transaction cost of businesses. The state government and I agree in principal to abolish the cost," Deshmukh said.

However, before taking any decision, the state government has to ensure that municipal finances don't crumble because of abolition of the octroi.

"We are discussing various options to replace the octroi and discussions are in a very advance stage. I would like to assure that the decision on this issue will be taken before the IMC's centenary year celebrations get over," he said.

He also appealed to the industrial sector to think beyond the Mumbai-Pune-Nashik triangle and venture into the interiors of the state. "The state government is ready to rollout a red carpet welcome for you if you are willing to go to the under-developed parts of the state," he added.

According to the chief minister, Maharashtra continues to be the leader in industrial investment and to retain its position, the government is working hard to attract the private investment in infrastructure projects.

"We want to strengthen our top position in engineering, automobile, chemicals and petrochemical industries and aspire to become leaders in software, tourism and other service sectors and reposition Mumbai as a global financial hub. We seek your co-operation in this endeavour," Deshmukh said.