//Gujarat cheers at higher allocations for its core sectors

Gujarat cheers at higher allocations for its core sectors

Ahmedabad | February 28, 2006 8:43:39 PM IST
With huge investments already being made in the state’s infrastructure sectors, Gujarat has reasons to cheer about increased allocations in Union Budget for 2006-07 for sectors which have been traditionally its core strength.

Several political leaders, cutting across the party lines, and captains of trade and industry hailed the budget as development-oriented, but had their reservations on the absence of administrative reforms, simplification and plugging loopholes in tax collections.

”Gujarat is sure to benefit from a number of ongoing and future projects in ports, roads, power, textiles, gems and jewellery and food-processing sectors,” they said.

In an interactive session arranged by the Confederation of India Industry (CII), Gujarat unit, here, its acting president A K Jagatramka said the State would be benefited by today’s announcements for deepening of the channel for Kandla Port, 4000 MW power project coming up in Kutch and Vadodara-Mumbai Expressway.

Mr Jagatramka, who is also Vice-Chairman and Managing Director of Gujarat NRE Coke, said that reduction in Excise Duty on steel should benefit the domestic industry in view of cheaper imported steel. The reduction in Customs Duty in raw materials is also good to promote manufacturing sector in the country.

CII Gujarat’s past president and convener (economic affairs) Naishadh Parikh said that two out of seven Textiles Parks being implemented in the country are in Gujarat. The state would also be a direct beneficiary of rise in Technology Upgradation Fund (TUF) for textile industry in the form of interest subsidy.