Kutch industries ask duty sop extension

The Kutch region may attract investments worth over Rs 10,000 crore if the Congress-led government at the Centre extends the excise duty exemption for industrial units by another three-five years.

The previous NDA-government had announced excise duty exemptions for industrial units set up in the Kutch region after the earthquake in 2000.

After this announcement, around Rs 7,500 crore of industries have come up in the region and production at these units are expected to begin before December this year.

"We will request the Centre to extend the excise exemption in the region by another three-five years. We are still receiving inquiries from various industries. If the duty exemption is extended, the region would attract investments of over Rs 10,000 crore," said Anil Patel, minister of state for industries and mines.

The tax incentive for the Kutch region will expire in December. The incentives sanctioned for the industrial units in Himachal Pradesh and Uttaranchal are entitled for 10 years.

"The Centre may extend the incentive package for the quake-hit Kutch region or club it with the incentives for Himachal or Uttaranchal. If the Centre will grant similar packages for Kutch, it will boost the industrial development in the region," said Patel.

Industrial units set up after the quake in the region will have to commence production before December this year.

Most of the industries in the region set up after the quake cannot commence production before the December deadline for lack of infrastructure and manpower.

Also, many other industrial units are in the pipeline and will set up their units if the Centre extends the tax deadline for the region.