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Nirmala Sitharaman, minister of state (independent charge) for commerce and industry, said on Monday that the government was taking necessary steps to revive the Nokia factory at Sriperumbudur in Chennai and that efforts would be made to avoid closure of factories in future.
“We are very concerned because it affected employment and gave a message about Indian industry not working in an environment where corporate decisions are being taken on merits. It was more on the question of how the Indian taxation policies, the duty structure, have adversely affected setting up of industry,” Sitharaman told reporters here on Monday.
She added that the government had looked into the details of the inverted duty structure and it understood “the negative impact it has created”.
According to Sitharaman, before the plant was closed in November, several delegations had met her requesting that it be saved. She added the government would consider “all options so that the workers of Nokia get justice”.
She lauded Prime Minister Narendra Modi’s speech on this issue in the Rajya Sabha earlier this month, terming it ‘gratifying’. “With the PM himself commenting on Nokia, I am sure something will happen.”
Modi had said the plant would start functioning soon.
On passing the Land Acquisition Bill, Sitharaman said: “The new policy is a lot more sensitive to the needs of the farmers, sensitive to the needs of development and has taken on board all concerns of the farmers and political party”.
The government understands that land is a critical issue and how concerned the farmers are, she said, adding the concerns of development, too, need to be considered.
Sitharaman said the government was taking all steps possible to revive industrial and exports growth and to make it easier for industry to do business here.
She blamed the previous United Progressive Alliance government for the fall in exports, which contracted 15 per cent in February. “This is the consequence of an enduring policy paralysis, which lasted till the new government came to power... The mood has now changed and the various steps taken by the new government have made it easy for businesses to come in,” she noted.
Sitharaman rejected reports that merchandise exports from India were falling due to delay in bringing out the new Foreign Trade Policy. She said the policy would be unveiled soon.
