Excise duty exemption for Himachal industry extended

Saturday, December 25, 2010

SHIMLA - The central government has decided to extend excise duty exemption for all industrial units set up in the state before March 31 this year, Himachal Pradesh Chief Minister Prem Kumar Dhumal said here Saturday.

The Central Board of Excise and Customs has decided that full excise duty exemptions would be available on capacity expansions undertaken by such units even after March 2010 (the last date on which the excise duty exemption regime ended in Himachal Pradesh and Uttarakhand), Dhumal told reporters here.

He said a communication in this regard was received from the central government Friday.

The chief minister said full excise duty exemption would be available to all the new products manufactured by such units even if they installed plant and machinery or capital goods after March 31, 2010.

But the excise exemption period would be of 10 years. The 10-year period will start from the date of commencement of commercial production of the industrial unit.

Official data show that Himachal Pradesh has attracted an investment of Rs.6,120.92 crore with the commissioning of 2,616 industrial units across the state from December 2007 till date.

During this period, the government cleared 3,469 industrial proposals worth Rs.14,097.63 crore.

A special package for industrial development in Himachal Pradesh was extended by the Atal Bihari Vajpayee-led National Democratic Alliance (NDA) government at the centre in 2003.

But the successive Congress-led United Progressive Alliance government curtailed it to 2007, before restoring it till 2010, officials here said.

Filed under: Economy

will not be displayed