A delegation of the Utkal Chamber of Commerce and Industry (UCCI) comprising Ashok Chinchela and Sanjeev Mahapatra attended the 15th Finance Commission meeting held here on Tuesday and raised issues pertaining to industries in the State.
Later, they submitted a memorandum to commission Chairman NK Singh in favour of their demands.
For large-scale industries, the UCCI appealed to the commission to enunciate a coal policy that would ensure supply of coals to State-based CCPs. “Even as Odisha has 24 per cent of the country’s total coal deposits and contributes 15 of total coal production, yet Captive Power Plants (CPPs) here languish due to coal shortage, affecting productivity. Some are also on the verge of closures,” argued the UCCI.
It also suggested that the royalty and associated taxes needs to be capped at around 40 per cent from the current level of 65 per cent to make exports of minerals competitive.
Allocation of more funds should be made for railways, ports and State highways. As Odisha has been a championing State of exports over the last decade, special allocations should be provided in addition to Trade Infrastructure for Exports Schemes (TIES). It also suggested for development of inland waterways and establishment of a Exports Promotion Council.
The UCCI also made many proposals for development of MSME sector, which contributes 40 per cent to the export market, produces 45 per cent of manufacturing output and has 30 per cent share in the GDP and employed about 110 million people.
The suggestions include proper implementation of CGTMSC scheme for adequate credit flow to the MSMEs, making GST simpler, raising
GST registration threshold limit to Rs 40/50 lakhs, interest subvention for MSME at least for the first 3 years of operation, 20 per cent mandatory purchase by PSUs from MSMEs, income tax holidays for new MSME for five years, social security for MSME sector employees, skill development and technology upgradation and ease of doing business through single window process for MSMEs.
The UCCI also urged the Finance Commission for allocation of more funds for urban development, smart city and other social welfare schemes like Swachh Bharat and Gramya Bikash Yojana.
The strength of the State economy depends upon the Central Budgetary support. The Raghuramrajan Committee had expressed concern about Odisha the most under Development Region in the country, mentioned the memorandum.