19,500 small Uttarakhand units hit, loss estimated at Rs 531.20 cr
Updated: Jul 02, 2013 05:38:48pm
Dehradun, Jul 2 (KNN) The floods in Uttarakhand have brought the state to its knees having hit as many as 19,500 small units which face a loss estimated at Rs 531.20 crore.
Those hardest hit were the small enterprises in the districts of Rudraprayag, Uttarkashi, Chamoli, Tehri, Pithoragarh, Almora and Pauri, whose economies depend on the Char Dham season.
Most of the MSMEs according to the president of the IAU Pankaj Gupta are facing financial and business losses mainly due to road blockades.
“As per official statistics, there are about 19,590 registered micro and small enterprises besides many unregulated and unorganized enterprises in the affected area. All these enterprises have been badly hit and have suffered huge property, business and financial losses,” he said.
He has indicated that there are 43,099 people employed in those enterprises and the total investment of the registered units amounting to Rs 531.20 Cr is on the verge of total loss. Besides, there are large numbers of people who do business in the unorganised sector.
Even as the State struggles to rescue thousands of people still stuck there, the Industry Association of Uttarakhand (IAU) has urged the Prime Minister for an interest rate cut.
In a letter to Prime Minister Manmohan Singh, Gupta has sought a special package for the MSMEs and increased targets under the Prime Minister’s Employment Generation Programme (PMEGP) due to this natural disaster.
Gupta has also urged the PM to provide an additional five percentage point cut in interest rates on loans for the enterprises for the next three years.
He has requested the PM for minimum power charges for all industrial and commercial establishments and that the rate be subsidised for the next three years from the current bill onwards.
Also, the industry body wants Vat- Deferment of Trade tax for next three years and Service Tax waiver to all services including restaurant services for five years in all hill districts and in the area above 650 meters from sea level in all plain districts of Uttarakhand.
He requested an income tax waiver for all businesses for five years and sanction and disbursement of subsidy of all pending cases immediately.
The industry body has also demanded the settlement of all claims arising out of this disaster to be done at the earliest with least formalities and also re-scheduling of bank loans by at least two years.
As the service sector is the worst hit sector in the state, Gupta has also urged the Prime Minister to relief in full, entertainment tax and deferment of current tax liability for the next three years.
Among other demands are relief in restaurant tax and deferment of current tax liability for next three years along with grant for creating MSE infrastructure lost due to rains.
Meanwhile, India has sought financial and technical assistance from multilateral development agencies.
A Finance Ministry statement that came out today said that it has decided to seek “external assistance from the multilateral development banks like Asian Development Bank and the World Bank for rebuilding of damaged infrastructure in the state."
“In view of the emergency situation, both ADB and the World Bank have been requested to fast track the processes of needs assessment, project preparation and approval,” the Finance Ministry said.
Senior Finance Ministry officials held meetings here with representatives of the World Bank and the ADB to discuss the possible areas of cooperation.
The federal government will take the loan and pass it on to the state government as 90 per cent grant and 10 per cent loan, as Uttarakhand is a “special category state."
The state has suffered extensive damage to physical infrastructure like roads, bridges, embankments and public and private buildings.
“The task of reconstruction and rebuilding the infrastructure would require a huge quantum of funds,” the Finance Ministry said without giving any specific data.
A joint team of the finance ministry officials led by additional secretary in the department of economic affairs Shaktikanta Das and representatives of the ADB and the World Bank are scheduled to visit Uttarakhand soon to access the situation. (SD/KNN)
Those hardest hit were the small enterprises in the districts of Rudraprayag, Uttarkashi, Chamoli, Tehri, Pithoragarh, Almora and Pauri, whose economies depend on the Char Dham season.
Most of the MSMEs according to the president of the IAU Pankaj Gupta are facing financial and business losses mainly due to road blockades.
“As per official statistics, there are about 19,590 registered micro and small enterprises besides many unregulated and unorganized enterprises in the affected area. All these enterprises have been badly hit and have suffered huge property, business and financial losses,” he said.
He has indicated that there are 43,099 people employed in those enterprises and the total investment of the registered units amounting to Rs 531.20 Cr is on the verge of total loss. Besides, there are large numbers of people who do business in the unorganised sector.
Even as the State struggles to rescue thousands of people still stuck there, the Industry Association of Uttarakhand (IAU) has urged the Prime Minister for an interest rate cut.
In a letter to Prime Minister Manmohan Singh, Gupta has sought a special package for the MSMEs and increased targets under the Prime Minister’s Employment Generation Programme (PMEGP) due to this natural disaster.
Gupta has also urged the PM to provide an additional five percentage point cut in interest rates on loans for the enterprises for the next three years.
He has requested the PM for minimum power charges for all industrial and commercial establishments and that the rate be subsidised for the next three years from the current bill onwards.
Also, the industry body wants Vat- Deferment of Trade tax for next three years and Service Tax waiver to all services including restaurant services for five years in all hill districts and in the area above 650 meters from sea level in all plain districts of Uttarakhand.
He requested an income tax waiver for all businesses for five years and sanction and disbursement of subsidy of all pending cases immediately.
The industry body has also demanded the settlement of all claims arising out of this disaster to be done at the earliest with least formalities and also re-scheduling of bank loans by at least two years.
As the service sector is the worst hit sector in the state, Gupta has also urged the Prime Minister to relief in full, entertainment tax and deferment of current tax liability for the next three years.
Among other demands are relief in restaurant tax and deferment of current tax liability for next three years along with grant for creating MSE infrastructure lost due to rains.
Meanwhile, India has sought financial and technical assistance from multilateral development agencies.
A Finance Ministry statement that came out today said that it has decided to seek “external assistance from the multilateral development banks like Asian Development Bank and the World Bank for rebuilding of damaged infrastructure in the state."
“In view of the emergency situation, both ADB and the World Bank have been requested to fast track the processes of needs assessment, project preparation and approval,” the Finance Ministry said.
Senior Finance Ministry officials held meetings here with representatives of the World Bank and the ADB to discuss the possible areas of cooperation.
The federal government will take the loan and pass it on to the state government as 90 per cent grant and 10 per cent loan, as Uttarakhand is a “special category state."
The state has suffered extensive damage to physical infrastructure like roads, bridges, embankments and public and private buildings.
“The task of reconstruction and rebuilding the infrastructure would require a huge quantum of funds,” the Finance Ministry said without giving any specific data.
A joint team of the finance ministry officials led by additional secretary in the department of economic affairs Shaktikanta Das and representatives of the ADB and the World Bank are scheduled to visit Uttarakhand soon to access the situation. (SD/KNN)
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