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MCC submits MSME, textiles policy drafts

03 July, 2013


The Chamber welcomed West Bengal's focus on a rapid and inclusive growth of MSME sector, which is the driving force of the economy in terms of employment, production and exports.

It also appreciated the adoption of a separate Textiles Policy to attract large-scale investments and global players.

According to the Chamber, the MSME Policy does not indicate the thrust areas with high growth potential for priority development such as Coir Industry.

Hence, it suggested that such industries should be specified and incentive packages should be provided for them.

The MCC Chamber further suggested that special provision should be made for Service sector enterprises in the MSME sector.

It suggested that for Howrah, only KMDA areas may be included in Zone A and remaining areas of Howrah district should come under Zone B.

Similarly, only industrial areas/urban areas of 24 Parganas (North & South) may be included under Zone A.

The Chamber hailing the provision of additional 20 pc subsidy on Capital Investment in enterprises wholly owned by Women, SC/ST and Minority communities, said that it is not clear whether in such cases, the ceiling limits for micro, small and medium units shall be applicable or not.

"The Policy statement needs clarification on this point," the Chamber demanded.

The Chamber noted that only a few years back electricity duty was doubled from 7.5 pc to 15 pc hence, the percentage of duty waiver should not be reduced in 2013 Policy from the earlier years and kept at 75 pc in Zone A and 100 pc in Zone B, C & D for a period of 5 years.

The enterprises in West Bengal are already overburdened with higher valuation of property made arbitrarily by the Registrar of Assurance, from time to time. Hence, earlier rates of 75 pc for Micro units and 50 pc for others should be retained, the Chamber noted.

Moreover, the Chamber also suggested that Entry Tax may be reimbursed for five years in place of three years, to provide genuine relief to the enterprises, as they do not get the full benefit of production in the initial two years.

The MCC Chamber in the Textile draft suggested that focus areas should also include Weaving, Fabric and/ or Garment Processing / Finishing / Dyeing / Printing also, as a large number of units in West Bengal are engaged in these areas and providing substantial employment.

It further suggested that Capital Investment Subsidy (CIS) should be available in addition to the benefits under TUF Scheme of the Central Government and the 5 year period should begin from the date of operation of the units.

As such, effective period should be 2+5 years. Moreover, Interest subsidy should be available for the whole of West Bengal and not in Zones C and D only.

The Chamber suggested that all textile units with power consumption of more than 1 MW should be allowed to purchase power freely from National Power Exchanges.

WBSEB, CESC or any Central/State/Private power distribution company should not be allowed to obstruct this free purchase of power from the Exchange, it said.

Further, for all export-oriented units in the SME sector consuming power up to 1 MW, a subsidy of Rs 3 per unit should be given for 10 years throughout West Bengal.

In case of consumption over 1 MW, free power purchase through Exchange should be permitted, permanently.

The Chamber suggested that for reimbursement of Entry Tax, besides Plant and Machinery, building and construction materials also should be included.

Besides, the consumption should be taken on actual basis without any cap/limit.

The proposed assistance up to 50 pc or Rs. 2 Lac being too small it will not be of any practical help, hence the provision may be deleted.

The Chamber pointed out that nowhere Common Effluent Treatment Plant (CETP) by the private sector has been feasible or practical.

It suggested that the practical course for the Government will be to set up complete and comprehensive CETP and levy reasonable charges on the individual enterprises.

The proposed 50 pc freight subsidy for units located in Zone D for export purpose only, is too small for practical purposes, hence this provision may be deleted, demanded the Chamber.

It further suggested that instead of setting up a separate R&D Centre, the existing R & D at Government College of Engineering & Textile Technology, Serampore may be developed as an ideal Center of Excellence for Textile industry. This will save lot of investment needed for a new Center of Excellence.

It suggested that the Policy statement should clearly provide that the factory buildings for textile units shall be multi-storied buildings.

The state government may workout with the architects the design of such buildings and provide attractive capital subsidy for multi-storied factories and buildings with maximum Floor Space Area (FSA), said the Chamber.

Further, the policy should clearly mention that women workers will be allowed to work in Textile industry for 24 hours (already allowed in Tamilnadu) as already allowed in the IT sector of the state, provided adequate accommodation, company transport, safety and security are assured by the industry, said the MCC Chamber.

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