Bring parity with VAT states: Industry

With the support of industry associations, the Uttar Pradesh government has decided to solve the issues and problems of industry.

Recently, Industrial Development Commissioner Atul Kumar Gupta held meetings with the Indian Industrial Association (IIA) in and outside Lucknow.

In a meeting held last week, besides the industrial development commissioner, principal secretaries from the IT and small-scale industries departments were present.

The issue that came up in the meeting was that as per the industrial policy of 2004, the benefits were not being extended to units that were expanding, diversifying or doing backward integration.

"Extending the benefits for expansion and diversification would result in quicker growth," said IIA General Secretary Anil Gupta. The industrial development commissioner said he would look into the matter.

The exclusion of Noida and Greater Noida in the new package for investment, announced on June 1, was discussed. IIA representatives said the proposed Greater Noida II, especially Secundrabad, should not be excluded from the package. The IIA was informed that Secundrabad was not excluded.

The industry association also took up the matter of the value-added tax (VAT). Representatives wanted compensation for industries in UP because of the tax not being in force in the state.

The IIA said until VAT was implemented in Uttar Pradesh, tax on raw material against Form B should be brought down to zero to bring parity with states where VAT was in force.

Atul Gupta told the association a group of ministers would look into tax matters.

In the meeting, the strategy for the implementation of a web-based single table system was finalised, developed by the IIA, with the support of the Udyog Bandhu. A trial run of the system will be completed in the districts of Lucknow, Kanpur, GautamBudh Nagar by July 22.

A presentation for all the departmental heads will be held on July 22 and there will be a state-wide launch in the third week of August.

In the meeting, the issue of bilateral trade between Pakistan and industries of Uttar Pradesh was also discussed. IIA President Tarun Khetrapal said the IIA had started discussions with the Sargodha Chambers of Commerce and Industry, Pakistan, in this regard. The Pakistan chamber will import 300,000 kg food grade potatoes.

Atul Kumar Gupta said a joint group might be constituted to identify the bottlenecks in trade with Pakistan.