Srinagar, May 10: Valley’s apex industrial body, the Federation Chamber of Industries Kashmir, today said the special industrial package was applicable for 10 years for J&K.
 A section of press on Sunday had carried a story quoting union Commerce and Industry Minister, Anand Sharma as saying that there will be no extension of the central excise duty exemption granted to the hill states including Himachal Pradesh, Uttarakhand and J&K, under the special industrial package that expired in March this year.
 “I think what the minister was referring to is clear exemption that has been taken off from Himachal Pradesh and Uttarakhand till the special industrial package expires in 2012-13 and which was earlier applicable there,” said Shakeel Qalander, president FCIK.
 He said for next two to three years, these states would get exemption on refund-basis. “This means that the package will be modified and not withdrawn, and the excise exemption would continue on the basis of refund,” he said.
 FCIK president said the industry players in J&K did not need to get panic, “for we have recently got the package modified and it is applicable in J&K for 10 years.”
 “In February we received an order from the Ministry of Revenue where-under we have got a renewed package extending excise exemption for ten years on refund-basis,” Qalander said, adding that such an exemption had been extended to J&K after PM had himself intervened in the issue.
 “The union minister cannot take off what PM has just three or four months back given to J&K. But the thing is that now everywhere only one type of exemption will be there that is on refund basis, which was already applicable in our state,” he said.
 Qalander said earlier also J&K was granted exemption on refund basis, according to which one month after the unit holders deposited excise duty with the department concerned, the entire amount was reimbursed to the unit.
  “But later the government made an amendment in the order and decided that this would be given on value addition alone, which badly affected our local industry.”
 “In fact in Jammu our menthol and copper units were wiped off because of that,” Qalandar said and added that they then fought for it as the people in J&K, especially in Kashmir, had not getting the advantage of the package that was launched in 2002-03.
 He said earlier they had been demanding clear exemption for J&K, as per which manufacturers were exempted from payment of excise duty.
  “We thought why should we first pay to the excise department and then they would refund the same. But that time they told us that clear exemption shall be taken off from every state including Himachal and Utarakhand, and that only one pattern will be there,” he said.
  “Then we also demanded that location bars should be removed from it, and now there is no location bar in the renewed policy,” he added.

Lastupdate on : Mon, 10 May 2010 21:30:00 Makkah time
Lastupdate on : Mon, 10 May 2010 18:30:00 GMT
Lastupdate on : Tue, 11 May 2010 00:00:00 IST