Industry welcomes 'pro-farmer' budget

Even while much of the benefits hinted at the annual state budget of Gujarat government for fiscal 2012-13 as "pro-farmer", the industry in the state saw it as a welcome step.

"The budget is pro-farmer. The allocation for animal husbandry and reduction in taxes levied on yogurt, butter, cheese and paneer will benefit the farmers. The state government has given importance to animal husbandry. It will also encourage dairy industry as a whole," said R S Sodhi, MD, Gujarat Co-operative Milk Marketing Federation (GCMMF), which owns the Amul brand.

Similarly, Amol Sheth, CMD of Ahmedabad-based Anil Limited also found allocation for food processing initiatives as a welcome step to promote agro processing and food business in Gujarat.

"Food processing industries in state to be benefitted. Government's proactive move for state farmers (significant allocation for farmers, irrigation, water resources, land development, crop production, agri-awareness) is a commendable step towards improving agricultural growth. Tax sops in VAT, and electricity duty will help industry curtail expenses. Moreover, relief on daily commodities for urban middle class to make life-style affordable for Gujaratis. This will also generate interest of business community from outside states to invest in Gujarat," said Sheth.

For the electric vehicle players like Electrotherm India Ltd., the reduction in VAT on electric vehicles (EVs) will only lead the state to become an EV hub in the country. "We are happy to note that Government of Gujarat has reduced VAT on electric vehicles (EVs) from 15 per cent to 5 per cent. This is a visionary step as world-over EVs are seen as an alternative to costly gasoline vehicles and with crude prices reaching $125/barrel level this is the only viable option. We are thankful to Government of Gujarat for supporting the clean technology vehicles. This reduction will help our customers and make our vibrant state of Gujarat India’s 'EV Hub'," said Avinash Bhandari of Electrotherm India Ltd.

Industry experts, however, felt that the reduction in electricity duty should have been passed on to industrial and commercial users as well. "The reduction of electricity duty by 25 per cent on consumption of electricity by residents and educational institutions will provide a relief of Rs 200 crore. These benefits were also necessary for industrial and commercial users," said Bhagyesh Soneji, chairperson - Gujarat council, Associated Chambers of Commerce and Industry of India (ASSOCHAM).

However, industry players in Saurashtra found the state budget was void of any benefits for the region. "There was nothing special in finance minister's speech for Saurashtra region. This budget is nothing but pre-election exercise. New connections of electricity to the farmers and VAT relief for hardware are good things but overall there is nothing much for industries," said Dhanubhai Vora, president of Greater Rajkot Chamber of Commerce and Industries (GRCCI).