CII presents wishlist to Rajasthan govt

The Confederation of Indian Industry (CII) has presented a wish list of recommendations to the Government of Rajasthan in its pre-budget memorandum submitted on Wednesday.

The memorandum is 'visionary', as it comprehensively addresses key macro, as well as micro issues to accelerate industrial and economic development of the state. The memorandum includes, among other things, suggestions to radically improve the state's fiscal health.

The Pre-Budget Memorandum, in effect, lays the roadmap for development of the state. To plug tax leakages and boost state revenues, CII has recommended that VAT be introduced from April 1, 2006.

CII has also suggested that all other taxes like entry tax, purchase tax, mandi tax, luxury tax etc. be amalgamated with VAT.

According to the recommendations, VAT legislations must be redrafted to avoid problems and simplify proceedings, certifications and legal clauses. CII has also asked for entry tax on raw materials of electronic and all other goods tobe abolished. Urging for urban reforms, the document conveys that the current stamp duty structure in Rajasthan is resulting in loss of significant revenues for the state exchequer and should be brought down to 4 per cent.

CII also suggested reduction ofe stamp duty by 50 per cent in case of new partners in the industry, and said entry must be made free for women entrepreneurs. CII recommended that the New Industrial Policy should be introduced in the state at the earliest. To facilitate a conducive environment for industrial growth, the memorandum recommends that the single window system should be followed in true spirit and be made effective.

According to the industrial survey, there are 15-20 procedures and forms through which a new entrepreneur has to pass for setting up an industry. These should be cleared at one location and be time bound only.

The recommendation asks for an evaluation system to ne generated, to gauge the progress which the government has achieved since its inception. The elimination of Inspector Raj will add comfort to the industry. The upgrade of ICDs can be a good step to provide industrial conveniences. Tourism is one of the biggest revenue earner for the state exchequer.

Hotel Policy should come out at the earliest. CII recommended that to facilitate the growth of tourism, the Tourism should be accorded full fledged Industry Status at the earliest. Land should be provided on lease at concessional rates as done in the case of industry. To further increase the landing of International flights to Jaipur, it is suggested that Air Turbine Fuel Surcharge be abolished.

With this memorandum, CII suggested to promote PPP in the overall growth for the tourism sector, for which Adopt a Monument scheme will be a real showcase to cater win "� win situation for both the parties.

The report has given suggestions on the need for reforms in the power sector. Reducing transmission and distribution losses should be a priority area. A 1% reduction in T&D losses results in Rs 70 crore of revenue for the State.

As on 42%The Rural Feeder Scheme of GoR has been appraised and memorandum expected that GoR must take firm steps to encourage this initiative. CII's memorandum also recommended rolling back the cess levied on the captive power.

It is also suggested to discourage raw material exports as it leads to shortage of raw material in the country and instead focus on value processed exports for a better value realization. Agenda also called for basic infrastructure requirement e.g. convention / exhibition centres in the state for the development of Gems & Jewellery sector. Strict guidelines and mechanisms should be devised to ensure hallmarking in this sector.

Focusing on the development of thrust areas, the memorandum has outlined recommendations in areas of mining, tourism, agriculture, handicrafts, textiles, gem and jewellery etc.

Acknowledging the pivotal role of agriculture in the state's economy, the memorandum states that development in this sector can have high impact on generating additional demand.

The CII agenda calls for an impetus to be given to contract farming and to educate farming community to anal fear attributed to contract farming and the APMC ammendments. Rajasthan should give stress on its strengths in agriculture. Mustard and rapeseed can be used for production of bio-diesel. Similarly Barley is a good raw material for beer.

Wastewater recycling must be introduced for use in agriculture of non-edible crops like cotton. Memorandum recommended to encourage wasteland development in Rajasthan.

Out of 237 blocks in Rajasthan, 232 are in Dark Zone and if there are less rains for next two-three years, even drinking water will not be available. Recharge of ground water and Rain Water harvesting to be made compulsory for existing and upcoming government buildings, commercial buildings and houses in a time bound programme.

The CII memorandum has also suggested to levy a tax on commercial and industrial usage of underground water and money thus recovered should be used by GoR for waste water recyling. Rationalization of water tariff to reflect the true cost of water supply is also very vital.

R K Poddar, Chairman CII Rajasthan State Council is confident that if the fundamental developmental issues outlined in this memorandum are addressed, Rajasthan could be well on its way of becoming one of the fastest growing states in the country.