FASII gives budget suggestions to CEA

Ludhiana, January 20, 2013: A delegation of Federation of Associations of Small Industries of India (FASII) met HAC Prasad, Chief Economic Advisor, Union Ministry of Finance in Delhi regarding the budget for next fiscal.

According to the FASII president Badish Jindal, the delegates suggested to Prasad to exempt wire drawing industry from central excise duty or make it optional, deemed credit of central excise duty be allowed on scrap, exempt knitwear industry from excise duty, rate of interest be low for MSME sector and special fund for revival of sick units.

The delegates further suggested to direct lending to industry by SIDBI, fix the floor import price of bicycles by Rs. 150 per kg, increase the import duty from 20% to 40% on bicycle parts, the adverse effects of SAFTA be monitored on MSME sector and limit of central excise duty should be enhanced from Rs. 1.5 crores to Rs. 3 crores.

Jindal told that Prasad assured that as most of the demands were genuine so the government might consider these suggestions, they also demanded some data and clarification on issues such as floor price of bicycle, effects of excise duty on knitwear's and deemed credit on scrap.

He told that another meeting with them alongwith Finance Minister was scheduled in next week.