PHDCCI hails abolition of Octroi in Punjab from Sept 1

Chandigarh, June 27 (UNI) The PHDCCI has welcomed the Punjab Government's decision to abolish Octroi in the state with effect from September 1, 2006.

This was a long pending demand of Trade and Industry, said Amarjit Goyal, Chairman, Punjab Committee, PHDCCI.

Another commitment made to the industry earlier was fulfilled by the Government by declaring to issue non-tradable bonds worth Rs 250 crores each year for 2 years to whom subsidy was payable, he said.

However, Mr Goyal pointed out that no decision has been taken on subsidy payable to industries established in the border districts.

For the development of border areas, he said the State Government had announced subsidy to new small-scale industrial units, except those in the negative list. The quantum of subsidy was 30 per cent of the fixed capital investment upto maximum of Rs 30 lakh per unit. He said that it was high time to release the subsidy to help small units set up in border areas.

Octroi fetches Rs 550 crores revenue per year to the local bodies which will now be funded out of the VAT collections as any starvation of funds to these bodies would result in deterioration of civic amenities, he added.

Mr R S Sachdeva, Co-Chairman, Punjab Committee, PHDCCI, complimented the Chief Minister for taking a visionary step in clearing the RIL's Mega Agri Project of Rs 5,000 crores in the state.

These agri projects, when implemented, would bring prosperity to the Punjab farmers who have gone under debt for various reasons, he said. Apart from imparting training, providing new seeds and latest know-how facilities, the Reliance Industries project would launch agriculture insurance and banking finance in the state.

The agri projects would cover 80 per cent farmers in the state and alleviate their poverty, he added.

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