SSI ministry asks FM to raise cap on excise duty exemption
The ministry of small-scale industries (SSI) has requested finance minister P Chidambaram to raise the excise duty exemption limit for SSI units up to Rs 1.5 crore in the next fiscal from the present cap of Rs 1 crore. The proposal has been made i...
By TNN |
KOLKATA: The ministry of small-scale industries (SSI) has requested finance minister P Chidambaram to raise the excise duty exemption limit for SSI units up to Rs 1.5 crore in the next fiscal from the present cap of Rs 1 crore. The proposal has been made in its pre-Budget memorandum.
If the FM clears the proposal, SSI units will be exempted from paying excise duty up to Rs 1.5 crore worth of value of their output, which is currently pegged at Rs 1 crore. Due to the rise in inflation in recent years, the SSI ministry has thought it fit to recommend a hike in excise exemption limit for SSIs.
Though the industry wants the limit extended to Rs 2 crore, the SSI ministry has urged the finance minister to consider hiking the limit to Rs 1.5 crore in 2007-08, said Jawhar Sircar, additional secretary and development commissioner, ministry of SSI.
Talking to reporters on the sidelines of a seminar on ���Opportunities and Challenges ��� Focus SMEs���, organised by Bengal National Chamber of Commerce and Industry (BNCCI), Mr Sircar added, ���The Planning Commission has recently approved an outlay of Rs 900 crore under 11th Plan for technology and skill upgradation for SMEs under the National Manufacturing Competitiveness Programme.���
The programme, which has been worked out jointly by the National Manufacturing Competitiveness Council (NMCC) and the SSI ministry, will be implemented under the aegis of the ministry. Originally, an outlay of Rs 1,000 crore had been sought for the programme, which aims at covering 10,000 firms, spread over more than 500 SME clusters.
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Of the Rs 900-crore outlay for NMCP, Rs 300 crore has been earmarked for adoption of Lean technology by SMEs to streamline their production processes and cut down on wastes. The balance include among others, Rs 160 crore for promotion of information, communication and technology (ICT), Rs 93 crore for technology and quality upgrade, Rs 110 crore for filing patents application and marketing support. Speaking on the occasion, Manabendra Mukherjee, the West Bengal minister of small scale & cottage industries and tourism, said his department would soon send proposals to the SSI ministry, asking for approval and financial assistance to set up 92 more SSI clusters in the state.
Recently, the Centre has cleared 24 out of the state's 42 proposals for SME clusters. Of this, 20 clusters would be set up by the state government in association with the industry associations and four by Small Industries Service Institute (SISI).
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