85% of investment MoUs bearing fruit: Desai
Ashish Roy | TNN | Jan 10, 2019, 04:08 ISTNagpur: Industries minister Subhash Desai has claimed that 85% of memorandums of understanding (MoUs) signed by state government with investors for setting up units in the state were seeing the light of the day.
Addressing members of Vidarbha Industries Association (VIA), Desai said, “These MoUs can be classified into three categories. The first is where production has started. In second land allotment has been done and construction has started. Many of them are close to starting production. The last is where land has been acquired but construction is yet to start.”
The minister disappointed the local industrialists by rejecting most of their demands. A common effluent treatment plant (CETP) in Hingna MIDC has been the demand since years. Desai said that industries would have to contribute 25% of the cost. “The project is stuck up only because of industrialists,” he added.
A VIA member told TOI that local industrialists had demanded that the plant be constructed fully with government money and the state government had agreed at that time. “However, now it is singing a different tune. CETP is an integral part of the infrastructure of an industrial estate and its government’s responsibility” he said.
VIA members pointed out that after introduction of goods and services tax (GST), state industries were not receiving some of the incentives announced in 2013. Desai said that the state government was not getting enough GST share as the tax was collected in consuming states and not producing states. “So we can’t give you those incentives as we don’t have the money,” he added.
Refuting Desai’s claim, the industrialist said that production units in the state were consuming raw materials and the state government was getting that GST.
The minister stressed on starting Swacchata Abhiyan in MIDCs. “We will do the initial job but industrialists will have to maintain it,” he said.
Addressing members of Vidarbha Industries Association (VIA), Desai said, “These MoUs can be classified into three categories. The first is where production has started. In second land allotment has been done and construction has started. Many of them are close to starting production. The last is where land has been acquired but construction is yet to start.”
The minister disappointed the local industrialists by rejecting most of their demands. A common effluent treatment plant (CETP) in Hingna MIDC has been the demand since years. Desai said that industries would have to contribute 25% of the cost. “The project is stuck up only because of industrialists,” he added.
A VIA member told TOI that local industrialists had demanded that the plant be constructed fully with government money and the state government had agreed at that time. “However, now it is singing a different tune. CETP is an integral part of the infrastructure of an industrial estate and its government’s responsibility” he said.
VIA members pointed out that after introduction of goods and services tax (GST), state industries were not receiving some of the incentives announced in 2013. Desai said that the state government was not getting enough GST share as the tax was collected in consuming states and not producing states. “So we can’t give you those incentives as we don’t have the money,” he added.
Refuting Desai’s claim, the industrialist said that production units in the state were consuming raw materials and the state government was getting that GST.
The minister stressed on starting Swacchata Abhiyan in MIDCs. “We will do the initial job but industrialists will have to maintain it,” he said.
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