Mumbai, Jun 21 (UNI) Union minister for chemical and fertilizers and steel Ram Vilas Paswan has assured to reduce excise duty from the existing 14 per cent to eight per cent on dyestuff products.
Addressing a the 58th annual General Meeting (AGM) of The Dyestuffs Manufacturers' Association of India (DMAI) held here last night, Mr Paswan said the reduction in excise duty will encourage the export of dyestuff. He said at present, China is India's main competitor in this sector and urged the industrialist to invest more funds in Research&Development, healthcare units and other sectors related to dyestuff.
Mr Paswan also urged the manufacturers, including small and medium units operators, to play a positive role in environment conservation, by adopting various pollution control measures and abiding by the pollution control norms.
Meanwhile, DMAI president Janak Mehta said export of dyestuff has recorded high at Rs 10,000 crore during financial year 2007 and expected to cross 15,000 crore in the next three years. He said the dyestuff products had maintained the growth rate of 20 per cent in the last few years.
Inorder to promote the growth, Mr Mehta urged the Union minister to reduce the excise duty and simplify advanced licence norms, to increase export of dyestuff product and related items. However, he expressing concerns that there were 900 units unorganized and only 50 organised big units in the sectors.
He said for the last one year or so, there has been a total transformation in the colorant industry due to various factors.
There is an exorbitant price rise in raw materials across the board, partly due to the recent surge of crude oil price above USD 135 per barrel, which has hampered the exports substantially. The rise may further affect the industry, he said.
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