Industrialists in Uttarakhand have reiterated their demanded for exemption of ‘mandi cess’ on raw agricultural material which is imported by the industries in the mountain State for industrial use as imposition of the said ‘mandi sulk’ is rather edging out competitiveness of the industries particularly in the textile sector.
“Imposition of the 2.5 per cent ‘mandi cess’ by the State Government on the industries in the hill State has had an adverse impact on the industrial growth. Therefore, we demand removal of the 2.5 per cent ‘mandi sulk’ which is being imposed on the industries in the State,” said Vikas Jindal, president of the Kumaon Garhwal Chamber of Commerce and Industries (KGCCI).
Factories in different parts of the Himalayan State like Rudrapur, Kashipur, Sitarganj to name a few are facing a tough competition in areas like the textile sector on account of increasing production cost due to 2.5 per cent ‘mandi cess’. Therefore, we urge the State Government to remove the 2.5 per cent ‘mandi cess, Jindal added.
The industrialists here of the view that earlier the State Government also promised them to exempt the 2.5 per cent ‘mandi sulk’ from the industries. But nothing has been done so far, they regretted. More so, the entrepreneurs in the state have also suggested that the State Government must come out with a proper policy for the textile sector so that even small scale industries could also be given a level playing field in this competitive arena.
Welcoming the State Government’s decision to develop a modern and integrated textile park at Jaspur in Udham Sing Nagar, the industrialists have maintained that the State Government must formulate a textile policy according to the needs of the hill State so that Uttarakhand could also compete with others in this textile sector.
The State Government must take in account finer points of the textile policies of states like Rajasthan, Gujarat and Punjab while giving a concrete shape its own textile policy, the industrialists here maintained. A proper textile policy is vital to attract investment in the state as investment would not only add to industrial growth but also create employment opportunities in the hill State at a time when the youngsters are migrating to other States in search of job. In the meanwhile, the industrialists have also urged the State Government to ensure uninterrupted electricity supply to the industries.