Industry Asso moving SC over subsidy to Uttarakhand, HP

Lucknow, Feb 5 (UNI) Indian Industries Association (IIA) is mulling over moving Supreme Court over tax relaxation and other ubsidies granted to Uttarakhand and Himachal Pradesh vis-a-vis Uttar Pradesh.

Under the Right to Information Act (RTI), IIA had sought details about parameters, which categorised the two hill states eligible for such relaxation by the centre.

''Our central unit -- Federation of Indian Small and Medium Enterprises (FISME) had sought the information under the RTI,'' IIA President Tarun Kumar Kheterpal told UNI here today.

''FISME has received the requested piece of information.

Considering these parameters, it is clear that UP is entitled for much greater benefits than what have accrued to Uttarakhand and HP,'' he asserted.

IIA is in the process of filing the PIL and its lawyers are doing the necessary ground work, Mr Kheterpal informed. He, however, also sought active support from the state government to this end.

''Due to this unfavourable policy towards UP, industries are migrating to other states, especially Uttarakhand from UP. The SME (small and medium enterprises) are the hardest hit due to this phenomenon,'' he maintained.

IIA is a major industry body, catering primarily to small and medium scale industries in UP, through its 33 chapters and over 5,000 active members in the state.

The Association laments the SME sector was the most neglected, both at the hands of the central and state governments.

''Last fiscal, SME contributed Rs 3,240 crore trade tax (TT) to the UP government, which was almost 40 per cent of the total TT collection excluding petroleum products,'' IIA senior vice president Parveen Sadana claimed.

Meanwhile, UP's biggest four-day Industrial Trade Fair came to an end here yesterday, which showcased over 200 participants.

Trade delegations from several countries, including the United Kingdom, Israel, Canada, Pakistan, Afghanistan and France visited the fair, which generated trade worth over Rs 30 crore.

Mr Kheterpal said IIA was holding talks with Pradeshiya Industrial Corporation of UP (PICUP) to set up a permanent venue for holding such industry fairs and expositions in UP on the lines of New Delhi's Pragati Maidan.

''Such a venue is expected to come up in the next 3-4 yrs in Lucknow, which would give a major marketing platform to SMEs in the region,'' he reasoned.

UNI