ISMA urges Guj govt to support mechanisation of salt fields

Forecasting that manpower shortage may hit the salt industry hard by 2017, the Indian Salt Manufacturers Association (ISMA) has urged the Gujarat government to support mechanisation of salt fields in the state and back infrastructure development there.
Gujarat accounts for nearly 77 per cent of country's total salt production, employing around 1.09 lakh workers. It produces over 13-14 million MT of salt annually.
"The industry has been loosing an estimated 15-20 per cent workers annually to the core infra sector. Its been a loss from our existing force," ISMA President P N Rao said.
"The way trend has been, manpower shortage would hit the industry by 2017.....Hence mechanisation of salt fields is necessary now," Rao, who is also member of Core Committee for Salt Industry, set up by the state government, said.

According to Rao, mechanisation of salt fields here can be done on the model adopted in countries like China, Mexico, Australia or some of the African nations.
For the mechanisation of salt fields to take place on cluster model, Rao said our major demand has been that tenure of land on lease allocated by the government for producing salt should be extended minimum upto a period of 30 years from the existing 10-year-norm.

"So as to redesign salt fields in a scientific manner by investing capital/obtaining loans from financial institutions, the tenure of salt leases should be made minimum of 30 years against the existing 10 year norm," Rao said.

The state government allocates land on lease for manufacturing of salt. State collects royalty of Rs 8 per tonne on removal of salt from salt works. It collected a salt cess of Rs 285 lakh in 2010-11.
Pointing that it takes two years to develop a field and production only begins after 5 years, Rao said it is difficult to convince bankers for loan on machinery as at times it takes over 5 years to get the lease renewal done.
"Bankers citing lack of sufficient time left for project viability often refuse to lend," Rao alleged.