Manufacturing in Odisha picks up as central excise mop-up surges

The central excise collection was Rs 4,128 cr between April-July in the current financial year

Central excise collection in Odisha has registered a record growth of 123% in the first four months of the current financial year hinting at improvement in manufacturing activities.
 

The central excise collection was Rs 4,128 crore between April-July in the current financial year compared to Rs 1,852 crore in the same period last year.

"The excise collection has taken a leap due to increased manufacturing activities in Odisha, especially in the petroleum and steel sectors," said an official.

Coal India subsidiary Mahanadi Coalfields Limited and oil marketing company Indian Oil Corporation Ltd have paid Rs 2,208 crore and Rs 286 crore central excise duty.Steel companies have contributed Rs 698 crore to the basket.

 

The indirect tax realisation in the state is Rs 6,326 crore as upto July, this financial year against Rs 3,405 crore collected upto July last year. The growth is 86% during the period under review.

Similarly, the customs duty collection is also up by 54% to Rs 1,280 crore upto the month of July compared to the same period of the previous financial year. The revenue realisation is Rs 447 crore more than last year. IOCL has paid custom duty of Rs 485 crore.

The service tax collection has also recorded a surge. The collection upto July is Rs 918 crore against the target of Rs 2,320 crore fixed for the current financial year. It is up by 28 per cent from Rs 720 crore realised upto July in 2015.

The total indirect tax realisation target for 2016-17 is Rs 16,300 crore.The target includes Rs 11,000 crore collection from central excise, Rs 2,800 crore from customs and Rs 2,500 crore from the service taxes. Last financial year, the realisation was Rs 11,936 crore against the target of Rs 11,420 crore.

Large investment regions like National Investment and Manufacturing Zone at Kalinganagar in Jajpur and a petroleum chemicals and petrochemicals investment region (PCPIR) at Paradip in Odisha are likely to give fillip to manufacturing activities in the state.