EEPC INDIA urges for faster VAT Refund
- EEPC INDIA announces two India Shows in Japan & Czech Republic
5th April, 2012, Kolkata : EEPC INDIA, formerly known as Engineering Export Promotion Council, the apex body of engineering exporters from India has urged the government to expedite the refund of VAT.
Mr A K Garodia, Chairman, EEPC India (Eastern Region), while welcoming the guests on the occasion of EEPC IINDIA Eastern Region Award Function for 2009-10 said that “engineering industry has come a long way after witnessing many ups and downs and needs stronger stimulus for further growth.”
The Award Function was graced by the presence of HE Shri Partha Chatterjee, Commerce & Industry Minister, Government of West Bengal. The event was also graced with the presence of HE Mr Miloslav Stasek, Ambassador of Czech Republic in India.
While congratulating the minister and his government for initiating several pro industry reforms since May, 2011, Shri Garodia said that since the taking over of the new Government, investment proposals for an estimated amount of Rs. 80,000 crore have been received by the Government. The success of the industrial summit, the Bengal Leads, points to the confidence of the industrialists in this Government.
However, Shri Garodia said that despite these measures, the non-refund of VAT claims remains to be an issue of serious concern for the exporters. This overdue VAT refund amount from the Office of the Commercial Taxes, West Bengal has resulted in financial crunch due to blockage of funds, he added.
He also mentioned that, besides delay in VAT refunds, there is an additional burden of payment of interest to banks for commercial borrowing for effective execution of export and fulfilment of contracts.
While addressing the gathering, Shri Anupam Shah, Sr National Vice Chairman, EEPC INDIA said that the state of West Bengal is witnessing a period of industrial rejuvenation and within a period of less than a year, West Bengal has been able to garner 19.6% of total industrial approvals in India in 2011 amounting to Rs 3,02,515 crore.
Shri Shah said that the recent state budget has rightly stressed on revenue mobilization and this is imperative if to ensure that future generations are not unduly burdened by debt. However, the re-introduction of 1% Entry Tax will result in increased transaction costs for businesses. He said that it may be more beneficial to raise the VAT rate rather than brining back an obsolete fiscal instrument.
Earlier, in his welcome address, Shri Garodia said that the Indian economy grew by 6.9 per cent in 2011-12, after having grown at the rate of 8.4 per cent in each of the two preceding years. The GDP growth in 2012-13 is predicted at 7.6% and 8.6% in 2013-14. India is projected to be the second-fastest-growing major economy after China as per the IMF.
The engineering Industry is a dynamic segment of India’s manufacturing sector with diversified industrial machinery and capital base capable of manufacturing the entire range of industrial machinery and products.
It accounts for 29.9% share of total investment and 62.8% share in foreign collaborations. The industry has also managed to successfully develop advanced manufacturing technology over the years. The engineering industry is an extremely employment intensive industry.
The total engineering exports during 2010-2011 reached around US$ 50 bn. Engineering exports touched US$ 45.5 billion in the first nine months of April to December, 2011 – 12, which is a growth of 13.8% over the same period in 2010-11.
With West Bengal, Orissa and Jharkhand as the key players, the Eastern region accounts for around 16% of total engineering exports of the country out of which West Bengal’s contribution was almost 80%.
On this occasion, EEPC INDIA also announced the organising of The India Show in Brno, Czech Republic in September 2012. The India Show is the latest initiative of the. Ministry of Commerce and Industry, Government of India for marketing of Indian products overseas and EEPC INDIA has been identified as the nodal agency to coordinate the event. The India Show will be organized at Brno during 10-14 September 2012 coinciding with 54th edition of MSV International Engineering Fair, Czech Republic which is one of the leading established industrial trade fair in Central & Eastern European Countries. India has been conferred the “Partner Country” status for the event.
EEPC INDIA also informed that yet another India Show will be held in Japan in June 2012. This event will be a part of Japan’s largest engineering exhibition - 16th Mechanical Components & Materials Technology Expo 2012 (M-Tech). In M-Tech also, India has been conferred the status of Partner Country.
On the occasion, 43 companies from the region were awarded for their excellent export performance. The list included some of the leading names like NALCO, R B Agarwalla & Co, Indian Metals & Ferro Alloys, Calcutta Ferrous, Patton International, Graphite India, Carnation Industries, Usha Martin, Kiswok Industries, Paul’s Instruments, Electrosteel Castings, Ramakrishna Forgings, Corona Steel Industry, Nezone Strips, Ratan Mica, Orient Fans, Exide Industries, Development Consultants etc. All the winners were awarded with specially made trophies and certificates.
The vote of thanks was presented by Shri B D Agarwal, Deputy Regional Chairman, EEPC INDIA (Eastern Region).
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