Cos want excise sops to continue in next fiscal: Assocham

News Posted - 2010-02-19

New Delhi: Corporate India wants stimulus package given in the form of excise duty cuts by the government to industry in the wake of the global financial crisis, to continue into the next fiscal, says a survey.

"Majority of India Inc seeks extension of existing excise sops for the next fiscal," Assocham said citing a survey.

About 400 CEOs were survey on industry expectations from the Union Budget 2010-11, to be unveiled on February 26.

The survey said that Finance Minister Pranab Mukherjee would focus more on sustaining the current growth momentum for which the continuation of fiscal concessions would have to be retained.

"85 per cent of CEOs belonging to micro, small and medium, and large enterprises polled in the survey held that stimulus package for textiles, gems and jewellery, construction and real estate, and cement and steel should go on for 2010-11," it said.

However, there is an apprehension of withdrawal of excise benefits from engineering and automobile sectors, the survey said. The sectors are out of recessionary mode, it added.

As much as sixty per cent of those surveyed are of the view that the Finance Minister might propose to the Reserve Bank in his budget proposals to monitor activities of micro finance companies and restrict them from availing huge credit from commercial banks under garb of priority sector lending at highly reduced rates.

Source: Economic times 17/2/10