The tax concessions provided by the Chhattisgarh government in its State budget in February this year is gradually bringing closed mini steel plants back to life in the State.
Moreover, the already operational mini steel plants which were earlier utilising their 60 per cent capacity have started ramping up their output to 80-90 per cent. Similarly, the output at the small and medium steel units have also jumped to nearly 50 per cent, industry sources here claimed. In the month of April, the business of steel units in the State has increased by 10-12 per cent compared to other states.
At least 95 mini steel units and 60 rolling mills were earlier closed down in the State. Ten per cent of them have already started production after the tax rebate was announced.The owners of the mini steel units which had remained closed have begun the process of restarting their plants and already sought the help of the banks for loan.
The Chhattisgarh Mini Steel Plant Association has expressed its gratitude and special thanks to Chief Minister Raman Singh, Commerce Minister Amar Agrawal and all other ministers in the Government for their efforts for the revival of the sick and closed steel units.
The association said it was for the first time in the State that the government encouraged the small and medium steel industries along with major steel industries. Association president Ashok Surana said the Government in its budget reduced the Central sales taxes (CST) from two per cent to one percent thereby giving a concession of about Rs 350 per tonne of steel produced to the industry.
Similarly, the production cost of steel units came down by Rs 450 per tonne when the Government provided an entry tax rebate of Rs 100.Although the State will incur a revenue loss of about Rs 15-20 crore from the rebate announced, the Government will, however, earn additional revenue from electricity and excise duty, he said. Besides, it will create new employment opportunities for 10,000 new people in the State.