Improvement in policies, GST required to revive glass industry
Updated: Dec 31, 2015 03:42:07pm
New Delhi Dec 31 (KNN) Glass industry in Agra has been in picture for its controversial existence and sustenance due to the policies inflicted in the city. Along with that, the manufacturers based in Agra are immensely suffering due to the tough competition given by cheap Chinese glass materials.
KNN got in conversation with glass manufacturers based in Agra to gain a sight into the plight of industry.
“TTZ set in Agra has massively harmed the glass industry” said Prassann Gupta of Premier Glass Industries. “Many of the units have shifted out of the zone due to the restrictions inflicted under the policy” he added.
Taj Trapezium Zone (TTZ) is an area of about 10,400 sq km around the Taj Mahal. It covers five districts in the Agra region and comprises over 40 protected monuments, including the Taj Mahal, Agra Fort and Fatehpur Sikri. It banned the use of coal/ coke in industries located in the TTZ with a mandate for switching over from coal/ coke to natural gas, and relocating them outside the TTZ or shutting down.
In spite of the damage incurred by industry, the manufacturers are in favour of the formation of TTZ calling it a necessary initiative to protect the Taj, an imperial monument of India.
Glass units as per the policy were forced to move out of the zone settling in the remote areas like Firozpur and Dhaulpur, which are situated at a distance of 30-35 Km from the zone.
“The fume emerging from the blast furnace of glass units is severely polluting and harmful for the Taj as well as other monuments located in the area”said Tarun Sachdeva of Sachdeva Glass and Plywood co. backing the policy and calling it a sincere decision by the government.
However, another issue that has been troubling the glass industry is the impeccable import of glass merchandises from China. The industry has run into losses due to facing strong competition from contemporary Chinese glassware that are available in the market at much cheaper rates. The products produced in India remains expensive.
The industry holds the taxes and abrupt policies by the government for the high price of the glass based products in India. “One of the reasons is the difference in the raw materials available to the manufacturers in India and that in China” said Sachdeva. “The multiplicity of taxes is a major contributor to the high price. The policies from the government aren’t favourable for the sustenance of small units” he added. Sachdeva, though, declined to blame the government of the issues because he holds the view that their problems never reach out to the government. The fault lies in the mediator and proper execution and supervision of the authorities.
Heavy imports from China are acting as a catalyst for the fall of glass industry. Chinese manufacturers sell a particular product in Indian market at approx. cost of Rs 180, that too, after adding all the expenses. Whereas, for an Indian manufacturer, the total cost for the similar product incurred is above Rs 400. The reason lies in lack of efficient policies.
Manufacturers in Glass industry demands a hike in import duty and excise duty to cut the imports from China and other countries. The industry also awaits the execution of GST to get a relief from tax prone issues.
“We are looking forward to some favourable policies like GST. It is going to decrease the tax related issues by 30 per cent, for both the manufacturer as well as the reatilers” sachdeva said.
The industry claims that there is lack in the attention given to their problems by the government. “The entire market, from manufacturers to retailers, is suffering at every stage and there is no authority to approach to” Sachdeva told us.
It was asserted that an improvement on the policy front and execution of GST would expand the glass industry.
“The expansion of the industry would ultimately lead to increase in the overall cash flow imposing a positive impact on India’s economy” Sachdeva concluded. (KNN/ J)
KNN got in conversation with glass manufacturers based in Agra to gain a sight into the plight of industry.
“TTZ set in Agra has massively harmed the glass industry” said Prassann Gupta of Premier Glass Industries. “Many of the units have shifted out of the zone due to the restrictions inflicted under the policy” he added.
Taj Trapezium Zone (TTZ) is an area of about 10,400 sq km around the Taj Mahal. It covers five districts in the Agra region and comprises over 40 protected monuments, including the Taj Mahal, Agra Fort and Fatehpur Sikri. It banned the use of coal/ coke in industries located in the TTZ with a mandate for switching over from coal/ coke to natural gas, and relocating them outside the TTZ or shutting down.
In spite of the damage incurred by industry, the manufacturers are in favour of the formation of TTZ calling it a necessary initiative to protect the Taj, an imperial monument of India.
Glass units as per the policy were forced to move out of the zone settling in the remote areas like Firozpur and Dhaulpur, which are situated at a distance of 30-35 Km from the zone.
“The fume emerging from the blast furnace of glass units is severely polluting and harmful for the Taj as well as other monuments located in the area”said Tarun Sachdeva of Sachdeva Glass and Plywood co. backing the policy and calling it a sincere decision by the government.
However, another issue that has been troubling the glass industry is the impeccable import of glass merchandises from China. The industry has run into losses due to facing strong competition from contemporary Chinese glassware that are available in the market at much cheaper rates. The products produced in India remains expensive.
The industry holds the taxes and abrupt policies by the government for the high price of the glass based products in India. “One of the reasons is the difference in the raw materials available to the manufacturers in India and that in China” said Sachdeva. “The multiplicity of taxes is a major contributor to the high price. The policies from the government aren’t favourable for the sustenance of small units” he added. Sachdeva, though, declined to blame the government of the issues because he holds the view that their problems never reach out to the government. The fault lies in the mediator and proper execution and supervision of the authorities.
Heavy imports from China are acting as a catalyst for the fall of glass industry. Chinese manufacturers sell a particular product in Indian market at approx. cost of Rs 180, that too, after adding all the expenses. Whereas, for an Indian manufacturer, the total cost for the similar product incurred is above Rs 400. The reason lies in lack of efficient policies.
Manufacturers in Glass industry demands a hike in import duty and excise duty to cut the imports from China and other countries. The industry also awaits the execution of GST to get a relief from tax prone issues.
“We are looking forward to some favourable policies like GST. It is going to decrease the tax related issues by 30 per cent, for both the manufacturer as well as the reatilers” sachdeva said.
The industry claims that there is lack in the attention given to their problems by the government. “The entire market, from manufacturers to retailers, is suffering at every stage and there is no authority to approach to” Sachdeva told us.
It was asserted that an improvement on the policy front and execution of GST would expand the glass industry.
“The expansion of the industry would ultimately lead to increase in the overall cash flow imposing a positive impact on India’s economy” Sachdeva concluded. (KNN/ J)
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