Chief Secy minces no words,sets record straight

At present,13 per cent electricity duty is imposed on the industry. The industrialists say that the electricity cost is included in the cost of production for which they pay VAT. Thus,electricity duty is an additional burden. So,they have been demanding that the 13 per cent duty be deducted from their VAT payment to the excise and taxation department.

However,Industry Minister Manoranjan Kalia,Deputy CM Sukhbir Badal and even Badal senior have assured industrialists that something on the matter will be done shortly.

The chief secy,however,clarified: “We have studied this option enough,but it does not seem to be possible to add another item in the already existing list. In goods service tax (GST),which is yet to be implemented,this option can be studied.”

Ahuja,meanwhile,said: “Sukhbir had been making false promises and the chief secretary today cleared the air on them. Aggarwal has clearly said that fright subsidy will not come and industrialists should stop asking for it.”

On a query regarding the status of a Metro for different cities of Punjab by J R Singhal,former chairman,CII Ludhiana,the chief secretary said: “As of now,only a study of the mass rapid transport system of the state is being done under which various options are being studied to test their feasibility. Once the tests are over,it can be decided which transport system is successful — road or Metro.”

About the nuclear power plant issue,Aggarwal told The Indian Express: “I am not aware of any details about the project and hence,I cannot comment upon it.” He also failed to give any deadline for the GAIL project completion or its latest update,while adding that power woes will continue for the next 36 months.

The industrialists were in for the bitter truth when Bhagwan Bansal,a cotton ginning industry owner,complained of the mutli-taxation system. Aggarwal said: “Drastic reduction in taxes is not possible at all. You should think of value addition to the ginning industry rather than the taxation system. Every state has to impose taxes as per their resources so one should not compare it with the neighbouring states.”

The issue of promoting agro-based industry was also discussed at length where the chief secretary said they have sent a proposal of three food park projects to the Centre,of which one is by Cremica based in Ludhiana. But the government has said that each state can get only one project as of now.

Akshay Bector,chairman of CII Ludhiana,said that high taxes on the food industry were not letting the agro industry grow in Punjab. Aggarwal,however,did not indicate any immediate reduction in state taxes in the near future.

More than 100 people attended the meet in

which Principal Secretary Dr S S Channi was also present to answer queries of industrialists.