Guj Govt demand special economic package for Surat

Gandhinagar, Aug 12: Gujarat Government has demanded a special package to restore the textile and diamond industry, which has been the worst affected due to the on-going floods in the state.

In a presentation to Prime Minister Manmohan Singh during his visit last evening to Surat, the industrial city, Chief Minister Narendra Modi requested him to consider the restoration and rehabilitation of the city as a ''National Priority'' and said it was the joint responsibility of the Centre and Government of Gujarat to see that Surat is brought back to its original glory by providing relief and rehabilitation packages immediately.

According to officials, the city has lost nearly Rs 14,300 crores due to loss of production as well as ready goods following floods.

Mr Modi sought immediate loan disposal to industrial units with moratorium on existing term loan and working capital for two years.

The loan should be provided at concessional rate of six per cent for two years to re-start these units.

He said all affected units should be exempted from Central Excise for three months from the date of re-starting these units and defer the payment of Excise Duty collected before the floods by six months.

Service tax should be exempted for two years. A grant of Rs one lakh should be given to small scale entrepreneurs like Powerlooms and jari industry from the Prime Minister's Relief Fund. Insurance claims should be disbursed by deputing senior officers with powers to decide on immediate basis, he said.

UNI