Jaipur: Electricity rates are already one of the highest in Rajasthan. Recently, the discoms in the states served notices to industrial units for depositing security money for two months.
The industry has urged the government to withdraw the notices because many MSMEs are still not out of woods after suffering huge losses during the Covid-19 pandemic.
Suresh Agarwal, president of Federation of Rajasthan Trade and industry, said, “After the pandemic, now there is a slowdown in the global markets. Demand for goods has fallen significantly. In view of the difficulties, we want the chief minister to announce relief to the MSMEs on this issue.”
Agarwal said, the industry also wants the chief minister to announce relief measures in the state budget on fuel surcharge on electricity tariffs. To generate demand for the MSMEs in the state, the industry has requested the state government to bring in a provision in the Budget to make it mandatory for government departments to purchase 50% of the required goods from manufacturers in the state.
Also, there should be provisions to make the payments early, for example within 15 days, so that the MSMEs have working capital.
Agarwal said high land rates have remained a concern for the industry.
“We urged the government that MSMEs should be given land at 25% of the existing rates. Similarly, instead of 10% of the development fees, RIICO should charge 5% to encourage more MSMEs in the state,” added Agarwal.
Industry feels that the developed land RIICO sales are not actually developed.
“Often there are issues of missing approach roads or drains not laid out fully. Common facility centre is not functioning properly,” added Agarwal.
On the issue of taxes, Agarwal said that the GST department currently charges 1% duty on personal guarantee.
“It is not logical and should be removed,” he said.
Non-conversion of industrial land into commercial category is hurting investment in some cases.
The government needs to look as there are many automobiles and services companies are willing to invest.
There is an urgent need for recategorization of green, white, orange and red categories for industries because a lot of complexities have crept into the exercise.
Agarwal said factories are slapped notices based on the understanding of the pollution control board.
“We urge the state government to launch a new exercise and start recategorization for better clarity and adherence of rules..” added Agarwal.
The industry has urged the government to withdraw the notices because many MSMEs are still not out of woods after suffering huge losses during the Covid-19 pandemic.
Suresh Agarwal, president of Federation of Rajasthan Trade and industry, said, “After the pandemic, now there is a slowdown in the global markets. Demand for goods has fallen significantly. In view of the difficulties, we want the chief minister to announce relief to the MSMEs on this issue.”
Agarwal said, the industry also wants the chief minister to announce relief measures in the state budget on fuel surcharge on electricity tariffs. To generate demand for the MSMEs in the state, the industry has requested the state government to bring in a provision in the Budget to make it mandatory for government departments to purchase 50% of the required goods from manufacturers in the state.
Also, there should be provisions to make the payments early, for example within 15 days, so that the MSMEs have working capital.
Agarwal said high land rates have remained a concern for the industry.
“We urged the government that MSMEs should be given land at 25% of the existing rates. Similarly, instead of 10% of the development fees, RIICO should charge 5% to encourage more MSMEs in the state,” added Agarwal.
Industry feels that the developed land RIICO sales are not actually developed.
“Often there are issues of missing approach roads or drains not laid out fully. Common facility centre is not functioning properly,” added Agarwal.
On the issue of taxes, Agarwal said that the GST department currently charges 1% duty on personal guarantee.
“It is not logical and should be removed,” he said.
Non-conversion of industrial land into commercial category is hurting investment in some cases.
The government needs to look as there are many automobiles and services companies are willing to invest.
There is an urgent need for recategorization of green, white, orange and red categories for industries because a lot of complexities have crept into the exercise.
Agarwal said factories are slapped notices based on the understanding of the pollution control board.
“We urge the state government to launch a new exercise and start recategorization for better clarity and adherence of rules..” added Agarwal.
