Excelsior Correspondent
JAMMU, May 3: The Association of Industries in Gangyal has expressed concern over the delayed disbursement of the announced turnover incentive for existing industries.
In a statement, the industries body said the Government had initially provisioned Rs 50 crores for the incentive, but claims filed by industries have amounted to over Rs 200 crores.
The President of the Association, Rajesh Jain, has appealed to Lt Governor Manoj Sinha to increase the budget for the turnover incentive to meet the actual claims filed by existing industries.
He said the existing industries have been under immense stress for survival since the introduction of GST and the abolition of toll tax.
Prior to the introduction of GST, Rajesh Jain, the President of the industries body, said the Government had provided incentives such as full VAT remission and exemption of toll tax to keep the existing industries competitive and to help them survive.
However, the current incentives, including the 2%/3% turnover incentive introduced in May 2021, are much smaller in comparison, he said.
Under the turnover incentive scheme, eligible units are entitled to receive 2%/3% of their turnover for five years, starting from the financial year 2021-22, with a maximum incentive capped at Rs 50 lakh per year for each eligible unit.
However, Jain said the eligible units have yet to receive the disbursement, causing liquidity stress. The Association has urged the Government to provide necessary funds and instructions for timely disbursement of the turnover incentive.
The Association has also pointed out that the delayed disbursement sends a wrong signal to potential new industrial units waiting to set up their industries in the State.
Rajesh Jain said the Government recently introduced an attractive incentive scheme for setting up new industries, offering a reimbursement of nearly 400% of capital invested in plant and machinery over a 10-year period. However, non-disbursement or delayed disbursement of already announced incentives can dishearten both existing and potential industrial units, he said.
The Association of Industries in Gangyal has requested the Government to increase the budget for the turnover incentive to meet the actual claims filed by existing industries and to ensure timely disbursement of the incentives.
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