Budget evokes mixed responses from industries

In a reaction to the state budget proposals for the year 2013-14, some industry bodies hailed the provisions, while some expressed concerns over additional burden.

Commenting on the budget proposals made by Gujarat finance minister Nitin Patel on Wednesday, the Associated Chambers of Commerce and Industry (ASSOCHAM) welcomed the 75 per cent rise in labour and employment department budget and 43 per cent in education budget this year. The industry body also appreciated government's initiative to teach foreign languages along with addition of 5000 seats in ITIs and establishment of new ITIs considering rising need of skilled manpower across the state.

Meanwhile, Gujarat State Small Industries Federation (GSSIF) has expressed concerns over the increase in electricity duty for the industries falling in low tension (LT) and high tension (HT) categories. "The finance minister has hiked electricity duty for LT and HT by Rs 0.55. This will increase production cost for small industries, thereby affecting their competitiveness," said Atul Kapasi, president, GSSIF.

"While small industries have contributed much to the progress of Gujarat, the state government has not given any specific relief to the sector in the budget. This will adversely affect about 3,20,000 small units of Gujarat," added Kapasi.